Sales promotion in the supermarket industry: a four country case comparison
Abstract:This paper considers four different markets (China, Singapore, Malaysia and New Zealand) and compares the relative development of the supermarket industry in each to observed sales promotion use and stated managerial preference. A case-based approach to research is taken in order to better highlight key similarities and differences between the four countries and compare sales promotion preferences in light of different industry structures, levels of market development and culture. The article examines three Asian (China, Singapore and Malaysia) and one Western supermarket industry (New Zealand), each exhibiting different levels of industrialisation and contrasting multinational involvement in the industry. The research finds that as industrialisation of a market increases, along with increasing sophistication of consumers and multinationalisaition of the industry, use of passive value-added techniques (such as sampling, demonstrations and free gifts) should decrease. This has marked implications for retailing in Asia, which is made up of highly differentiated countries in regard to market sophistication and gives specific direction for application of sales promotion techniques in the Asian region.
Document Type: Research Article
Affiliations: Department of Marketing,School of Business, University of Otago, P.O. Box 56, Dunedin, New Zealand
Publication date: 2012-07-01