The Effectiveness of Bank Premiums

Preston, Robert H.; Dwyer, F. Robert; Rudelius, William

doi:10.2307/1250542

Cited by 10 publications

(9 citation statements)

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“…Thus, whether the premium was free or offered at a reduced-price did not impact on either consumer appreciation of the promotion or perceived manipulation intent. This result was consistent with that reported in Preston et al (1978) in the bank sector. H4 was also not supported.…”

Section: Europeansupporting

confidence: 94%

“…Given their importance in promotional strategy, it is surprising to see that there has been little research on premiums by marketing academics. Preston et al (1978) looked at the effectiveness of premiums in the bank sector. They were curious as to whether or not there would be differences with respect to the number of new bank account openings between a situation where a premium (free cookware or low-price calculator) was offered and one where there was no premium.…”

Section: Premium-based Promotional Offers 1271mentioning

confidence: 99%

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Understanding consumer reactions to premium‐based promotional offers

d’Astous

Jacob²

2002

European Journal of Marketing

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Reports the results of a three-study research program whose purpose is to gain a better understanding of consumer reactions to premium-based promotional offers. In the first study, elaborates and evaluates a comprehensive typology of premium-based promotional offers with respect to its content and predictive validity. In the next study, explores the semantics that are used by consumers when they are presented with premium promotions and develops a series of research hypotheses from qualitative interviews with 12 consumers. In the final study, conducts a survey of 182 adult consumers to test these research hypotheses. The results reveal that consumer appreciation of premium-based promotional offers is more positive when the premium is direct than when it is delayed, when there is a relatively lower quantity of product to purchase, when the value of the premium is mentioned, when brand attitude is positive, when interest in the premium is great, and when consumers are characterized by deal-proneness and compulsive buying tendencies. Consumers' perception of manipulation intent is affected mainly by directness of the premium, mention of the value of the premium, interest in the premium, and deal-proneness.

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Section: Europeansupporting

confidence: 94%

Section: Premium-based Promotional Offers 1271mentioning

confidence: 99%

Understanding consumer reactions to premium‐based promotional offers

d’Astous

Jacob²

2002

European Journal of Marketing

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“…A premium-based sales promotion is one in which a good or service is offered free of charge or at a relatively low price in return for the purchase of one or many products or services. For instance, a potential customer may be offered a free cookware set as a premium for opening a new bank account (Preston et al, 1978). Premium-based promotions can be categorized into two types (d'Astous and Jacob, 2002): those involving direct premiums (e.g.…”

mentioning

confidence: 99%

“…Although premium-based sales promotions are commonly used in marketing practice, academic research on the subject is scarce. In an early study, Preston et al (1978) looked at the effectiveness of premium-based promotions (free cookware or low-price calculator) in convincing customers to open a bank account. The study took place in two different banks.…”

mentioning

confidence: 99%

An experimental investigation of factors affecting consumers' perceptions of sales promotions

d’Astous

Landreville

2003

European Journal of Marketing

100

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This paper reports the results of an experimental study where four characteristics of premium-based sales promotions were manipulated in the context of a computer purchase: the attractiveness of the premium, the extent to which it fits the product category, the reception delay of the premium, and the mention of its value. The results show that these factors had interactive effects on consumer reactions. Thus, although the attractiveness of the premium generally had a positive impact on consumer appreciation of the promotional offer, a promotion including an unattractive premium was nevertheless positively evaluated if the premium was a good fit to the product category. Sales promotions, including a premium that fits well the product category, were less likely to be perceived as manipulative. However, if the product-premium fit was poor and the premium was not attractive, mentioning the value of the premium helped to reduce the perceptions of manipulation intent. It is concluded that more research is needed on this managerially relevant topic in light of the complex dynamics that appear to underlie the relationships between the characteristics of premium-based promotions and consumer reactions. Background discussionSales promotion comprises a multitude of marketing tools designed to stimulate the purchase of goods and services by providing an incentive. Among those tools, premiums occupy an important place. A premium-based sales promotion is one in which a good or service is offered free of charge or at a relatively low price in return for the purchase of one or many products or services. For instance, a potential customer may be offered a free cookware set as a premium for opening a new bank account (Preston et al., 1978). Premium-based promotions can be categorized into two types (d'Astous and Jacob, 2002): those involving direct premiums (e.g. an article is inserted in the package) and those involving delayed premiums (e.g. an article is sent by mail upon receiving a proof of purchase). Each year, thousands of marketing practitioners attend specialized trade shows such as the Premium Incentive Show (Goldsborough, 1998) or the Motivation Show

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“…In that study, it was found that 50% of the increase in a number of accounts in a bank searched occurred during a promotional campaign. More recently, D'Austous and Jacob (2002) [23] demonstrate the efficiency of this promotional tool to influence the computer purchase, while Boschetti (2012) [24] confirmed the positive linkages, promoting the behavior of purchase of financial services. As stressed by some authors (D'Austous & Landreville, 2003 [25]; Haans & Gijsbrechts, 2011 [26]; Jones, 2008 [27]) there is still academic and managerial deficiencies on the deeper knowledge of the relationship of sales promotion with consumer behavior and their effectiveness for the companies.…”

Section: Literature Reviewmentioning

confidence: 99%

Changes in Consumer Perspective towards Discount at Brick-and-Mortar Stores owing to Emergence of Online Store Format in India

Ganesha

Aithal

Kirubadevi³

2020

SSRN Journal

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End-of-season sale (EOSS) has been one of the most important long duration sales promotion/discounting events for brick-and-mortar retailers and consumers in India. But, ever since the online retailing format has emerged in India, consumers now have wider options available for them to buy a product at a discounted price and notably, as online stores in India are following the product discounting as one of the key drivers for consumer acquisition, consumers' perspective towards discount at brick-and-mortar store is expected to have changed. This change in consumers' perspective has put the majority of brick-and-mortar retailers in India into a quandary and they are losing out their market share slowly to online retailers. In this research, authors have attempted to investigate; (a) proof, (b) pattern, (c) magnitude, (d) significance and (e) impact of this change in perspective towards discount across stakeholders and transpired the research outcomes into suggestions to enable brickand-mortar retailers to design appropriate sales promotions.

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The Effectiveness of Bank Premiums

Cited by 10 publications

References 0 publications

Understanding consumer reactions to premium‐based promotional offers

Understanding consumer reactions to premium‐based promotional offers

An experimental investigation of factors affecting consumers' perceptions of sales promotions

Changes in Consumer Perspective towards Discount at Brick-and-Mortar Stores owing to Emergence of Online Store Format in India

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