The Effect of Sales Promotion on Brand Awareness and Brand Loyalty: Assessment of Walia Beer Brand Management Practices
Published: 2021
Author(s) Name: Fikirte Belachew Tufa, Mesfin Workineh Melese |
Author(s) Affiliation: Catering and Tourism Training Institute, Ministry of Culture and Tourism, Addis Ababa, Ethiopia.
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Abstract
Sales promotions have become one of the preferred methods of marketing communication. However, there is a debate on whether
sales promotion has a positive effect on brand awareness and brand loyalty. So, the purpose of this study was to examine the
effect of sales promotion on brand awareness and brand loyalty; and the relationship between brand awareness and brand loyalty.
The research employed explanatory research design to identify any causal links between sales promotion, and brand awareness
and brand loyalty. Primary data were collected from a sample of 389 Walia beer consumers using convenient sampling technique;
and data were collected using a five-point Likert-type scale, ranging from ‘strongly disagree’ (1) to ‘strongly agree’ (5). Data were
entered into SPSS 20, and analysis of the measurement and structural models were made using AMOS 20. The findings revealed
that sales promotion has a positive and significant effect on brand awareness and brand loyalty; and awareness has a positive
effect on brand loyalty. This indicates that beyond its usual immediate impact on sales volume, sales promotion has an effect on
branding.
Keywords: Brand Awareness, Brand Loyalty, Sales Promotional Activities
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