Trade sales promotion and distributors’ performance of fast-moving consumer goods (FMCGS)

https://doi.org/10.21744/irjmis.v9n2.2011

Authors

  • Aniebiet Etuk Department of Marketing, Akwa Ibom State University, Nigeria
  • Joseph A. Anyadighibe Department of Marketing, University of Calabar, Nigeria
  • Edim Eka James Department of Marketing, University of Calabar, Nigeria
  • Peter Miracle Egemba Department of Marketing, University of Calabar, Nigeria

Keywords:

consumer, distributors performance, FMCGs, sales promotion, trade allowance

Abstract

This study examined trade sales promotion and distributors’ performance of fast-moving consumer goods (FMCGs). It was carried out to establish the effects of trade allowance, dealers’ contest and rebate on distributors’ performance with special reference to fast-moving consumer goods. The study adopted survey research design. The sampling technique adopted was judgmental sampling. Primary data were obtained from 218 retailers and wholesalers of fast-moving consumer goods using a 5-point Likert scale questionnaire. The hypotheses developed for the study were tested using simple linear regression. Consequently, it was found that rebate had the highest significant positive effect on distributors’ performance, while trade allowance and dealers’ contest had the second and third-highest significant positive effects on distributors’ performance of FMCGs respectively. Therefore, the study concluded that trade sales promotion strategy has a significant positive influence on distributors’ performance in the context of fast-moving consumer goods (FMCGs). The study also made practical and theoretical implications for further research.

Downloads

Download data is not yet available.

References

Binuyo, A. O., Ekpe, H., & Binuyo, B. O. (2019). Innovative strategies and firm growth: evidence from selected fast moving consumer goods firms in Lagos state, Nigeria. Problems and Perspectives in Management, 17(2), 313.

Blattberg, R. C., & Neslin, S. A. (1993). Sales promotion models. Handbooks in Operations Research and Management Science, 5, 553-609. https://doi.org/10.1016/S0927-0507(05)80035-0

Buckinx, W., & Van den Poel, D. (2005). Customer base analysis: partial defection of behaviourally loyal clients in a non-contractual FMCG retail setting. European journal of operational research, 164(1), 252-268. https://doi.org/10.1016/j.ejor.2003.12.010

Daramola, G. C., Okafor, L. I., & Bello, M. A. (2014). Sales promotion on consumer purchasing behaviour. International journal of business and marketing management, 2(1), 8-13.

DelVecchio, D., Henard, D. H., & Freling, T. H. (2006). The effect of sales promotion on post-promotion brand preference: A meta-analysis. Journal of retailing, 82(3), 203-213. https://doi.org/10.1016/j.jretai.2005.10.001

Ezekiel, M. S., Ndem, S. E., & Eni, M. G. (2020). The Impact of Trade Promotion on Sales Volume in the Breweries Industry (A Study of Guinness Nigeria Plc). Nigerian Academy of Management Journal, 15(4), 1-15.

Familmaleki, M., Aghighi, A., & Hamidi, K. (2015). Analyzing the influence of sales promotion on customer purchasing behavior. International Journal of Economics & management sciences, 4(4), 1-6.

Gryshchenko, O. F., Klisinski, J., & Bilan, M. I. (2015). Sales promotion methods at Ukrainian market of commercial vehicles: analysis, efficiency, prospects. ????????? ? ?????????? ?????????, (1), 167-177.

Guo, X., Fan, Y., & Luo, L. (2014). Multi-channel heat exchanger-reactor using arborescent distributors: A characterization study of fluid distribution, heat exchange performance and exothermic reaction. Energy, 69, 728-741. https://doi.org/10.1016/j.energy.2014.03.069

Hilal, M. I. (2019). Trade sales promotion and retailer’s sales performance of lubricant oil in the Ampara District: Retailers’ perspective. Journal of Emerging Technologies and Innovative Research, 6(2), 448-453

Huang, T., Fildes, R., & Soopramanien, D. (2014). The value of competitive information in forecasting FMCG retail product sales and the variable selection problem. European Journal of Operational Research, 237(2), 738-748. https://doi.org/10.1016/j.ejor.2014.02.022

Johannsen, P. (2020). Promotion methods in trade sales.

Kahindi, K., & Gitahi, N. (2020). Effect Of In-Store Promotion On Performance Of Supermarkets In Nakuru East And Nakuru West Sub-Counties, Kenya.

McNeill, L. (2013). Sales promotion in Asia: successful strategies for Singapore and Malaysia. Asia Pacific Journal of Marketing and Logistics.

Michael, B. N., & Ogwo, E. (2013). Trade sales promotion strategies and marketing performance in the soft drink industries in Nigeria. International Journal of Marketing Studies, 5(4), 96.

Moghri, M. (2021). The relationship between point-of-purchase advertising and the purchase intention in chain stores’ customers. Journal of Humanities Insights, 5(02), 56-60.

Neha, S., & Manoj, V. (2013). Impact of sales promotion tools on consumer’s purchase decision towards white good (refrigerator) at Durg and Bhilai Region of CG, India. Research Journal of Management Sciences ISSN, 2319, 1171.

Niedermeier, A., Emberger?Klein, A., & Menrad, K. (2021). Which factors distinguish the different consumer segments of green fast?moving consumer goods in Germany?. Business Strategy and the Environment, 30(4), 1823-1838.

Oko, A. E. N., & Nnanna, O. O. (2014). Sales promotion in the marketing of telecommunication services in Nigeria: Impact analysis. Expert Journal of Marketing, 2(1).

Okoye-Chine, M. (2021). The Effect of Sales Promotion on Marketing of Coca cola Drinks in Anambra State. International Journal of Innovative Social Sciences & Humanities Research, 9(1).

Pembi, S., Fudamu, A. U., & Adamu, I. (2017). Impact of sales promotional strategies on organizational performance in Nigeria. European Journal of Research and Reflection in Management Sciences Vol, 5(4).

Ramos-Alvarado, B., Hernandez-Guerrero, A., Juarez-Robles, D., & Li, P. (2012). Numerical investigation of the performance of symmetric flow distributors as flow channels for PEM fuel cells. International journal of hydrogen energy, 37(1), 436-448. https://doi.org/10.1016/j.ijhydene.2011.09.080

Schmitt, B., Brakus, J. J., & Zarantonello, L. (2015). From experiential psychology to consumer experience. Journal of Consumer Psychology, 25(1), 166-171. https://doi.org/10.1016/j.jcps.2014.09.001

Sigurdsson, V., Engilbertsson, H., & Foxall, G. (2010). The effects of a point-of-purchase display on relative sales: An in-store experimental evaluation. Journal of Organizational Behavior Management, 30(3), 222-233.

Sipayung, R. C., Salqaura, S. A., & Sembiring, B. K. F. . (2021). Analysis of competitive advantage factors on business performance with sustainability performance as moderating variable in coffeenatics. International Journal of Business, Economics & Management, 4(2), 319-334. https://doi.org/10.31295/ijbem.v4n2.1650

Stephen, A. T. (2016). The role of digital and social media marketing in consumer behavior. Current opinión in Psychology, 10, 17-21. https://doi.org/10.1016/j.copsyc.2015.10.016

Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International journal of medical education, 2, 53.

Tsao, Y. C., Lu, J. C., An, N., Al-Khayyal, F., Lu, R. W., & Han, G. (2014). Retailer shelf-space management with trade allowance: A Stackelberg game between retailer and manufacturers. International Journal of Production Economics, 148, 133-144. https://doi.org/10.1016/j.ijpe.2013.09.018

Van Loon, P., Deketele, L., Dewaele, J., McKinnon, A., & Rutherford, C. (2015). A comparative analysis of carbon emissions from online retailing of fast moving consumer goods. Journal of Cleaner Production, 106, 478-486.

Yang, W., Pan, Y., Ma, J., Yang, T., & Ke, X. (2020). Effects of allowance allocation rules on green technology investment and product pricing under the cap-and-trade mechanism. Energy Policy, 139, 111333. https://doi.org/10.1016/j.enpol.2020.111333

Yildiz, S., & Yildiz, E. (2013). The measurement of distributor performance with a multi-criteria decision making method.

Yulianti , N. M. D. R. ., & Kintani , A. C. S. . (2020). Revitalization: new opportunities or new problems? The perspective of trader. International Journal of Business, Economics & Management, 3(1), 177-185. https://doi.org/10.31295/ijbem.v3n1.185

Published

2022-02-08

How to Cite

Etuk, A., Anyadighibe, J. A., James, E. E., & Egemba, P. M. (2022). Trade sales promotion and distributors’ performance of fast-moving consumer goods (FMCGS). International Research Journal of Management, IT and Social Sciences, 9(2), 254–263. https://doi.org/10.21744/irjmis.v9n2.2011

Issue

Section

Peer Review Articles

Most read articles by the same author(s)