The Impact of Sales Promotion on Perceived Transaction Value and Purchase Intentions The Moderating Role of Promotional Benefit Level

The purpose of this paper is to examine how promotional benefit level moderates consumers evaluations of different types of promotions including free gift and price discount, This research uses a cross-sectional experiment to manipulate promotional benefit level, type of promotion and measures consumers value perceptions and purchase intentions, The results obtained suggest that at high benefit levels price discounts are more effective than premiums, while the opposite occurs at low levels. However, a similar evaluation of promotional tools was found at low benefit levels. The findings offer guidance to managers who might benefit from knowing what is the best strategy to promote their products and services. Our work also extends prior related research because, to this date, the effectiveness of price discounts and premiums across promotional benefit levels is an under-researched issue.