Short answer

Design promotional offers to align with specific business objectives: use monetary discounts for immediate sales boosts and non-monetary incentives for cultivating brand loyalty and positive long-term perceptions.

Field: Innovation & Markets
Source: Digital Scholarship - UNLV (University of Nevada Reno) (2021)
Method: Experimental design
Evidence: Strong effect

Monetary sales promotions (e.g., discounts) are more effective for immediate purchase intent, while non-monetary promotions (e.g., free upgrades) can foster stronger long-term brand perception. This innovation & markets research insight is drawn from a 2021 study published in Digital Scholarship - UNLV (University of Nevada Reno). Using Experimental design, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design promotional offers to align with specific business objectives: use monetary discounts for immediate sales boosts and non-monetary incentives for cultivating brand loyalty and positive long-term perceptions.

Study

Innovation & MarketsHigh ImpactStrong effect

Monetary vs. Non-Monetary Hotel Promotions: Short-Term Purchase Intent vs. Long-Term Brand Image

Monetary sales promotions (e.g., discounts) are more effective for immediate purchase intent, while non-monetary promotions (e.g., free upgrades) can foster stronger long-term brand perception.

Digital Scholarship - UNLV (University of Nevada Reno) · 2021

Key Findings

01Monetary promotions significantly influenced immediate purchase intent.
02Non-monetary promotions had a more positive impact on long-term brand image and attitude towards the hotel.
03Consumer characteristics like deal proneness and need for cognition moderated the effectiveness of different promotion types.

Application

Design takeaway

How to apply

When designing a sales promotion, consider whether the primary goal is to increase immediate bookings or to enhance brand perception over time. Select monetary incentives for the former and non-monetary incentives for the latter.

Project actions

01When designing a promotion, clearly define whether you want to drive immediate sales or build long-term brand loyalty.
02Consider offering a mix of monetary and non-monetary incentives to cater to different customer needs and achieve both short-term and long-term objectives.

Method & Evidence

AimTo investigate the short-term and long-term effects of different online hotel sales promotion types (monetary vs. non-monetary) and their fit with the hotel offering on traveler behavior, considering individual consumer characteristics.

MethodExperimental design

ProcedureTwo studies were conducted. Study 1 used a one-factor experimental design to compare monetary and non-monetary promotion types, examining their effects on traveler behaviors across different levels of need for cognition, deal proneness, intention to travel, and promotional attractiveness. Study 2 further explored promotional framing effects within each type (e.g., dollar vs. percentage discount, free room night vs. upgrade) and the impact of promotion fit.

ContextOnline hotel sales promotions

Variables

IV["Sales promotion type (monetary vs. non-monetary)","Sales promotion fit","Need for cognition","Deal proneness","Intention to travel","Promotional attractiveness"]

DV["Intent to purchase","Intent to spread word-of-mouth","Brand image perceptions","Attitude toward the brand","Attitude toward the hotel"]

CV["Hotel type","Online platform","Demographics of participants"]

Strengths & Limitations

Strengths

+Utilizes experimental design to establish causality.
+Investigates both short-term and long-term effects.
+Considers moderating consumer characteristics.

Limitations

The effectiveness of promotions can vary greatly depending on the specific product, target market, and competitive landscape, which may not be fully captured in a simplified experiment.

Reliability & validity

The use of experimental designs with controlled variables enhances internal validity. Reliability can be assessed through the consistency of findings across different participant groups or repeated measures.

Think critically

To what extent do cultural differences influence the perceived value of monetary versus non-monetary sales promotions?

Design Principles

"Promotional strategies should be tailored to achieve distinct short-term and long-term marketing goals, recognizing that different incentive types yield varied outcomes."

Understanding the differential impact of promotion types allows businesses to strategically allocate marketing resources. This insight is crucial for designing campaigns that not only drive immediate sales but also build lasting customer loyalty and brand equity.

What This Means for Your Design

Different types of deals work better for different goals. Discounts get people to buy now, but free extras make them like the brand more later.

How to use in your project

1.This research can inform the design of promotional strategies for a product or service, helping to justify the choice of specific incentives based on desired outcomes (e.g., immediate sales vs. brand loyalty).

Add to My Project

Quick Cite

Paragraph starter

The effectiveness of sales promotions is contingent on their type and alignment with business objectives. Monetary promotions, such as discounts, are effective for driving immediate purchase intent, whereas non-monetary promotions, like upgrades or added services, tend to foster stronger long-term brand image and customer loyalty. This distinction is critical for designing targeted marketing strategies that achieve both short-term sales targets and sustainable brand equity.

Source

Digital Scholarship - UNLV (University of Nevada Reno)

The Short and Long-Term Effectiveness of Online Sales Promotion Type and Fit in Hotels

journal · 2021

View source

Questions About This Research

What does the research say about monetary vs. non-monetary hotel promotions: short-term purchase intent vs. long-term brand image?: Design promotional offers to align with specific business objectives: use monetary discounts for immediate sales boosts and non-monetary incentives for cultivating brand loyalty and positive long-term perceptions. Evidence: Digital Scholarship - UNLV (University of Nevada Reno) (2021).
Why does "Monetary vs. Non-Monetary Hotel Promotions: Short-Term Purchase Intent vs. Long-Term Brand Image" matter for design?: Understanding the differential impact of promotion types allows businesses to strategically allocate marketing resources. This insight is crucial for designing campaigns that not only drive immediate sales but also build lasting customer loyalty and brand equity.
How can designers apply this research?: Design promotional offers to align with specific business objectives: use monetary discounts for immediate sales boosts and non-monetary incentives for cultivating brand loyalty and positive long-term perceptions.
What were the main findings?: Monetary promotions significantly influenced immediate purchase intent.. Non-monetary promotions had a more positive impact on long-term brand image and attitude towards the hotel.. Consumer characteristics like deal proneness and need for cognition moderated the effectiveness of different promotion types.
What research method was used?: Experimental design.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2021 journal from Digital Scholarship - UNLV (University of Nevada Reno).
What should I do differently in my next project?: When designing a sales promotion, consider whether the primary goal is to increase immediate bookings or to enhance brand perception over time. Select monetary incentives for the former and non-monetary incentives for the latter.
What are the limitations?: The study's findings may be context-specific to the hospitality industry and online booking platforms. Generalizability to other sectors or offline promotions requires further investigation.