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An Investigation into the Long Term Impact of Sales Promotions on a High Fashion Retailer’s Brand Equity. An exploratory examination of Tommy Hilfiger sales promotional strategy in Ireland.

Keogh, Colin (2014) An Investigation into the Long Term Impact of Sales Promotions on a High Fashion Retailer’s Brand Equity. An exploratory examination of Tommy Hilfiger sales promotional strategy in Ireland. Masters thesis, Dublin, National College of Ireland.

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Abstract

Sales promotions act as an acceleration tool, designed to speed up the selling process and to maximise sales volume. The competitive nature of the retail sector has amplified the use of sales promotional tools. It is well documented that excessive use of sales promotions, particularly price promotions, can damage brand equity.

Purpose:
The purpose of this thesis is to ascertain if Tommy Hilfiger’s existing sales promotional strategy is having a long term effect on consumer based brand equity. The present research will be designed to compare the dimensions of the CBBE model with monetary and non-monetary promotions.

Literature Review:
The literature review examines the growing use of sales promotions in retail, the effects it has on purchasing behaviour and consumer brand attitudes. The dimensions of consumer based brand equity (awareness, associations, loyalty and quality) is also explored whilst the influence of sales promotions on these variables will be investigated.

Method:
Two focus groups were carried out as part of the qualitative research. Participants were selected through non-probability sampling based on convenience selection and demographic fit. All participants were considered part of the Tommy Hilfiger target demographic, i.e. fashion conscious people aged between twenty-five and forty-five years of age.

Conclusions:
It was discovered that the existing price promotional strategy in Tommy Hilfiger has widened the target consumer demographic allowing the brand to be more accessible to the value sensitive consumer. This has somewhat weakened the brands luxury image and arguably desensitised consumers to brands hedonic benefits and may have resulted in loss of brand loyalty. It was also uncovered that existing sales promotion tactics had no direct impact in damaging consumer’s internal reference price or general price expectations. This also contributed to the brand maintaining its perceived high quality image throughout.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Fashion Industry
H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Retail Industry
Divisions: School of Business > Master of Science in Marketing
Depositing User: Claire Wallnutt
Date Deposited: 14 Nov 2014 17:39
Last Modified: 14 Nov 2014 18:27
URI: http://trap.ncirl.ie/id/eprint/1753

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