The Impact of Discounts and Promotional Offers on Consumer Purchase Decisions: A Study of Consumers in Nellore

Author

DR. MADHULATHA ,KADIYALA MANIKANTA


Abstract

 Retailers often use discounts and special offers to draw in customers, clear out inventory, and encourage people to buy things they didn’t plan on. The paper studies the influence of Discounts and Promotional Offers on Consumer Purchase Behaviour in Nellore, Andhra Pradesh. Two hundred consumers filled out structured questionnaires, and the data were looked at in Excel using descriptive statistics, Cronbach's alpha, the chi-square test for independence, one-way ANOVA, and multiple linear regression. 

Reliability of the scales were good or satisfactory (alphas between 0.77–0.86). 

Significant differences in purchase decision scores were observed by age group (ANOVA F value 6.67 p value < 0.001) and income level (3.55 p value 0.015), the only two demographic variables found to be significantly related to offer influence; purchase decisions of younger and lower income respondents were most influenced by offers. Income level and degree of influence had no association (chi square value 11.11 p value 0.085) and gender and offer type preferred had no association as shown by the chi square test (chi square 2.67 p value 0.446). Based on the regression results it was observed that perception of value (B 0.205 p value < 0.001), limited time offers creating urgency (B 0.160 p value 0.005) and promotional offers (B 0.137 p value 0.046) had a significant positive impact on purchase decisions (R2 0.100; F 7.27 p value < 0.001). Practical conclusions for local retailers are provided, such as deep discounts combined with a clear indication of time-limited offers.



Keywords

discounts, promotional offers, consumer purchase decision, sales promotion, Nellore, impulse buying



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