Will Consumers Prefer Exchange Offers in Consumer Durable Market? – An Empirical Study Based on a Consumer Survey

Sales promotion is frequently used in retailing. It takes up a large share of the resources retailers spend on marketing. The heavy usage of sales promotion has recently become questioned by retailers and manufacturers. Despite the large sums yearly spent on sales promotion, the economics of sales promotion is poorly understood especially the emerging promotion tools such as Exchange offers and Hire purchase. This paper attempts to study in detail about the consumers’ attitude towards Exchange offers. Research framework was formulated based on review of literature. Survey was conducted, using structured questionnaire. A total of 1000 questionnaires were distributed in high density retail stores at Bangalore. Out of which, 762 valid responses were collected. They were analysed with particular focus on the demographics of the respondents, their perceptions towards the benefits of Exchange offers and thereby attitude toward Exchange offers with respect to popular consumer durables such as Refrigerator, AC, Colour Television and Washing Machine.