Consumer response to gift promotions

Purpose: The objective of this paper is to better understand the factors that influence consumers' responses toward gift promotions. Specifically, the aim is to analyse four variables: the nature of the promoted product, the fit between the product and the gift, the type of brand used in the promotion and the deal-proneness. Design/methodology/approach: In an experimental context, 247 subjects were randomly assigned to a 2 (product type: utilitarian vs hedonic)×2 (gift type: utilitarian vs hedonic)×2 (brand type: high equity vs medium equity) between-subjects factorial design. Findings: Results indicate that the nature of the promoted product does not influence consumer response. Overall evaluation of gift promotions is more favourable when simultaneously the brand promoted has high equity and the fit between the promoted product and the gift is high. Offering a gift that fits with the product and using high equity brands is a wise strategy to positively influence purchase intentions. Findings also show that deal proneness has a positive impact on purchase intentions. Research limitations/implications: A limited set of product categories, gifts and brands were used. Future research should also examine other variables and use a representative sample. Practical implications: Findings provide useful guidelines for the design of gift promotions. Originality/value: Most previous research has focused on monetary promotions with little about non-monetary promotions. This paper addresses this gap by analysing consumers' responses to gift promotions incorporating key determinants in the analysis.