In this dissertation the field of promotion marketing was examined by studying the
impact of sale promotions on brand royalty. More specifically, for products with different
levels of involvement, the study assessed how effective different nonmonetary and
monetary promotions are at retaining brand loyalty.
Two research questions were posed: (a) Will the effect of nonmonetary and monetary
promotions on brand loyalty vary according to the extent of hedonism or utilitarian
benefits for low and high involvement products? (b) Will the preference for nonmonetary
or monetary promotions on brand loyalty have a greater or lesser effect for low and high
involvement products? It was theorized that the effect of nonmonetary and monetary
promotions on brand loyalty would vary according to the extent of hedonism or utilitarian
benefits for low and high involvement products (H1a and H2a). The second set of
hypotheses (H2a and H2b) posited that preference for nonmonetary promotions would
have a greater on brand loyalty for both high and low involvement products.
A questionnaire consisting of 36 questions provided the data that was collected from 114
subjects. Two product categories were chosen for the study: deodorant (high involvement)
and laundry detergent (low involvement). For each product category, regression was used
to explore the relationship between the indirect variables and the dependent variable —
brand loyalty. The results did not show support for any of the hypotheses; yet, they offer
valuable information on sales promotions.