Short Term and Long Term Impact of Sales Promotion on Organizations’ Profitability: A Comparative Study between Convenience and Shopping Goods

The research paper explores the short term and long term impact of sales promotion, through the use of financial analysis and consumer survey respectively, offered by Pakistani companies from two diverse industries, i.e. Beverage Industry (Shezan International Ltd) and Foam Manufacturing Industry (Diamond Supreme Foam). Survey research was conducted on a sample of 200 consumers to analyze the long term impact of consumer’s perception of sales promotion by measuring its relationship with brand loyalty. The questionnaire used to measure the consumer perception of sales promotion and brand loyalty were based on the scale developed by Astous and Jacob in 2002 and Quester and Lim in 2003 respectively. The financial indicators were used for measuring the financial performance of companies and Pearson Correlation, Cross tabulation and Regression Analysis were used for inferential analysis through the use of SPSS. Results reveal the presence of various extraneous factors impacting the effectiveness of promotions.