INTERNATIONAL JOURNAL OF ACADEMICS & RESEARCH (IJARKE) · theory, prospect theory transaction utility theory, and assimilation contrast theory). Most studies in this field in Kenya

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH ISSN: 2617-4138 IJARKE Business & Management Journal DOI: 10.32898/ibmj.01/2.1article02

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7 IJARKE PEER REVIEWED JOURNAL Vol. 2, Issue 1 Aug. – Oct. 2019

Effects of Sales Promotion on Consumer Behaviour in the

Telecommunication Industry in Kenya

Charles Obiero, Jomo Kenyatta University of Agriculture & Technology, Kenya

Dr. Benedict Mutuku, Jomo Kenyatta University of Agriculture & Technology, Kenya

1. Introduction

It is paramount for the organizations to come up with new strategies to gain competitive advantage in the market (Johnson &

Scholes, 2013). Since competition is increasing each and every time due to globalization, this has made it possible for

organizations to develop new competencies to replace the old and outdated ones that are breaking down due to environmental

changes. Organizations, whether public or private must become relevant to change with the changes in the environment. Rose and

Lawton (2009) established that changes that occur in the service institutions are because of the economy, performance evaluation,

effectiveness, ethics and market concerns and the need for efficiency.

Pressure been piling on managers and their organizations due to increasing demand for services and expectations of quality of

those services because of changes experienced in these organizations. Dawson (2013) established that change is an understanding

of the present and future expectations that influence interpretation of past events which may shape our experiences. This is

because change is seen as complex and dynamic activity which interlocks and overlaps due to the politics, substance and context

in the organization.

Consumers must at all-time know what the businesses are offering t them inform of goods. (Jobber & Lancaster, 2016). Dwyer

& Tanner (2016) assessed and found that there are more business consumers than individual consumers in the market. When the

consumers are not contented with the products offered by the retailer in the market, they will change their taste and preferences

away from the business reducing the sales volume making them register low profits. Shultz, et al. (2010) says that besides

affecting awareness or attitude, sales promotion also influences the decision making of individual consumers when they purchase

commodities. Most studies have established that most different strategies of sales promotions lead to improved sales and

INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH (IJARKE Business & Management Journal)

Abstract

Due to liberalization, internet connectivity has spread throughout the country as well as mobile phone use across different

network since inception in 1999. Market liberalization and globalization of the telecommunication industry in the country has

been experiencing fierce competition. Hence there is need for companies in this industry to promote their products. Due to the

importance of sales promotion, this study sought to determine how sales promotion affect customer behavior at Safaricom ltd.

The findings of this research will be of great value to: Telecommunication industry, Kenyan government more especially

Communication Authority of Kenya (CAK) and lastly researchers and academicians. The research was only limited at

Safaricom outlets in Mombasa County. To provide the basis of the study, the researcher relied on four (4) theories (adaptation

theory, prospect theory transaction utility theory, and assimilation contrast theory). Most studies in this field in Kenya has

been carried out in the beverage and alcohol industry, hence a study gap exist which this sought to bridge. The study relied on

the descriptive research design where questionnaires were distributed to 100 employees of various Safaricom outlets in the

county. The study adopted a census technique since the population is small hence target population was equal to the sample

size. For data analysis the researcher used SPSS. The study also adopted regression equation. Among 100 questionnaires,

only 77 questionnaires were returned by the respondents, in which the researcher relied on for data analysis. The correlation

analysis showed that there is a positive relationship between independent variables (sweepstakes, airtime bonuses, discounted

call rates loyalty schemes) and the dependent variable (consumer behavior) and also a positive correlation exist between the

independent variables. The analysis further showed that independent variables can explain only 44.7% of the dependent

variables. The study found out that consumer behavior at Safaricom Ltd is affected by sales promotion strategies such as

Furahi na Safaricom, Tunukiwa na Safaricom, Mpesa Scholarships, Lipa na Mpesa, Storo Bonus, Bonga Points and

discounted call rates. Finally, the study recommended that Telecom firms should conduct both market research and research

and development on sales promotion strategies, the study also suggested that some of the sales promotion strategies such as

discounted call rates and airtime bonuses should be applied cautiously so as to maintain profitability of the organization.

Key words: Sales Promotion, Consumer Behaviour, Telecommunication Industry, Loyalty Schemes, Lotteries


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eventually increased profits by influencing the decisions of customers at various stages when they want buy a given product

(Kwok & Uncles, 2015).

1.1 Sales Promotion and Consumer Behaviour

An organization attempts to reach the market using the following components like direct marketing, sales promotion, public

relations, personal selling, publicity and advertising with is sales promotion widely used amongst them (Czinkota & Ronkainen,

2014). Sales promotion is to develop and create brand awareness, change consumer attitudes towards the brand, gain market share,

induce buying, build brand loyalty and increase sales by delivering messages to target customers (Kurtz, 2010).

Sales promotion stimulates consumer purchasing power and dealer effectiveness as a marketing activity. It includes displays,

trade shows, premiums, samples, use of coupons and games that support the objectives of the promotional programmes by

emphasizing, assisting and supplementing when combined with other forms of promotion (Thompson, 2010).

Organizations should adopt ways attracting more customers by selling goods of high quality when there is stiff competition

amongst them. Sales promotion enhance customers’ goodwill, increase product life cycle, increase sales growth and at the same

time promoting sales hence viewed as the next available marketing strategy Moemeke (2017). Also, the studies of Omotayo

(2011), Akanbi et.al (2011) argued that a sale promotion attracts retain old consumers. Businesses existence should also be to

enhance repetitive purchases apart from producing goods and services that the customers require and to making of profit.

Telecommunication companies in Kenya are trying a variety of sales promotion strategies to improve their profit margin and

increase their market share as a result of these strategies. Telecommunication companies in Kenya spent millions of shillings in

promoting their brands and services. The telecommunication companies provide consumers and dealers rewards to purchase the

product hence increasing their market coverage. The common sales promotion strategies used by Telecom firms include

sweepstakes, point of purchase display, contests and games, price deals and premiums.

The phrase “consumer behavior” refers to the process of making decision that includes buying, evaluating, utilizing and

disposing of products. Marketers usually strive to understand the factors that contribute to consumer’s decision, when purchasing

goods and services. The factors include self-concept, instance perception, cultural background of the consumer, age group, beliefs,

personality, motivation and social factors (Kotler, 2014).

Market research on the consumers’ behavior is very critical on the business survival in the 21st

century because of the

customers can access information hence more powerful. Kotler (2014) noted that consumers are not relying on individual

manufacturers or distributors because they know the products they want, the quality and the amount they will pay for those

products. In most cases they will want to personalized services by quoting the price they would pay for the service and waiting

sellers to make them an offer. Therefore, firms that do not come up with new products will not compete favorably because of the

changes in consumer’s tastes and preferences. Therefore, firms are considered to be successful when they are flexible in their

activities (Jaworski & Kohli, 2013).

In the Asian market, there has been a rapid growth in the telecommunication industry. In 2004, after the market was

deregulated, Pakistan for example had growth rates of 170% and rising leading to a fierce competition among many companies in

the Asian market. In 2011, it had 108.99 million subscribers whereas in 2010, it was 99.2%. Customers using prepaid services is

98% compared to those using postpaid services (Pakistan Telecommunication Authority, 2010-2011). Telecommunication

companies have adopted various marketing techniques to attract and retain their customers. These include Telenor, Ufone,

Mobilink, Warid and Zong that uses GSM (Global System of Mobile services) in Pakistan. These companies generated annual

earnings of 5.4% higher than the previous years by reaching the mark of Rs. 363 billion (PTA, 2011).

In Africa telecommunication industry is considered as one of the major players of the economic growth and development. The

emergence of voice and data service enterprises has rapidly risen due to the increased competition in the market. The revenues

realized by the Telecom Company is 40% annually with 400 million the subscribers. This has brought about increased

competition in this lucrative industry (Zakir, Maske & Suraj, 2010).

Firms trying to enter the markets in major cities like Abidjan (Côte d’ Ivoire), Lusaka (Zambia), Abidjan (Côte d’ Ivoire) and

Libreville (Gabon) is 70 % while about 50 % of the growth comes from rural areas (Zakir et al, 2010). Companies are creating

opportunities by forging new industrial practices and new models for operation to reduce cost by 50% as well as by seeking more

individualized pricing models and the distribution of goods and services. The growth pocket of data services is about $5 billion

and experiences gained 10% increase in broadband penetration translating to a growth of 0.5% to 10% in GDP from other

countries (Zakir, et al, 2010).

Closer home in Rwanda, there has been significant developments in the Telecommunication industry. In December 2013,

63.5% of people were using mobile phone compared to 53.1% using mobile phone in December 2012 (Ministry of Youth & ICT

(MYICT) Report, 2014). MYICT (2014) report shows that Rwanda has 6,689,158 mobile subscribers as of December 2013which

shows a total addition of 998,407 new subscribers in a12 month period. From this figure, MTN Rwanda Limited has 3,556,497


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(53.17%) subscribers, Tigo Rwanda Limited has 2,175,127 (32.52%) subscribers and Airtel Rwanda Limited has 957,534

(14.31%) subscribers (MYICT Report, 2014).

Due to liberalization, internet connectivity has spread throughout the country as well as mobile phone use across different

network since inception in 1999. There has been increased number of mobile phone users and growth in the internet connectivity

(Telecommunications and IT overview, 2013). The establishment of the Communications Authority of Kenya (CAK) in February

of that year was of vital importance to this process. The role of the CAK is to provide regulation and licensing telecommunication

industries in Kenya. 78 percent of the Kenyan population of 41.6 million owns a mobile phone (July 2013), compared to only

251,000 that have a landline (Silicon Savannah, 2013). Internet usage in Kenya at the end of 2012 was 41% compared to 22.7%

just a year before that in December 2011. This was achieved due to the good leadership of the Kenya government together with

ICT guidelines in reference to the vision 2030 plan including being the first country to introduce a government open data portal.

In Kenya, the first mobile phone companies began their operations in the mid-1990s and have been increasing while the use of

landlines is decreasing. They have reduced from 300,000 in 1999 to 250,000 by 2008 while nearly 17 million people now own cell

phones. If we assume that at most 47% of the population has cell phone, this will show that about 83% of the population can have

internet access (Jack & Suri, 2010).

The telecommunication industry in Kenya is served by three major telephone service providers leading to monopolistic

competition. They include Safaricom, Airtel and Orange/Telkom. These companies deal in similar services for example mobile-

based money transfer. Therefore, the competition will become stiff if more companies are licensed by the Communications

Authority of Kenya (CAK) (Elliot 2010).

2. Statement of the Problem

Sales promotion helps firms in spreading and popularizing their products amongst the customers which in turn helps in

widening their market segment leading to increased sales volume as a result of brand loyalty. Since it is an expensive undertaking,

it should fulfill the goals for which the companies and firms want to achieve at s given time. Companies in the telecommunication

sector will always strive to understand the decisions made by consumer when they want to buy a product or service to determine

whether sales promotion strategies stimulate their decisions or not as increase in sales volume is sometimes not might attribute to

the sales promotion strategies. Hence a number of factors usually contribute to consumer purchase decisions.

The Telecommunication industry in Kenya forms the integral part of the country’s economic growth towards achievement of

vision 2030. The sector has posted some growth in the last few years and has a potential to grow at a much higher rate. However,

there is a sharp decreasing market share in mobile subscription, low penetration rate in internet usage and high cost of products

and services (CAK, 2014). Safaricom LTD market share has been decreasing tremendously in the recent past more especially after

2017 general election due to the economic boycott for its products by the opposition supporters and also expiry of its “Tunukiwa”

services this has led to gain by its competitors that is Airtel Kenya and Telkom (CAK, 2018).

Studies done in Kenya mainly focused on distribution strategies. Few studies have been carried out and none has been done in

respect to sales promotion strategies. According to Owuor (2010), study focused mainly on sales distribution strategies used by

wines and spirit importers and manufacturers in Nairobi. Ndegwa (2013) carried out research in the agrochemical industries and

focused on the types of sales promotion strategies used in Kenya. Kinguyu (2013) examined sales promotion practices and sales

performance of companies and firms that deals mainly on fast moving consumer goods while Muthenya (2016) researched on the

sales promotion tools used by restaurants dealing in fast foods. The studies done by Owour (2010) only looked into the

distribution strategies used agrochemicals industries. This research sought to bridge the gap by answering question on the effects

of sales promotion on consumer behavior at Safaricom Limited.

3. Study Objectives

The general objective of the study was to determine the effects of sales promotion on consumer behavior at in the

Telecommunication Industry in Kenya, with specific interest in Safaricom Kenya Limited.

4. Review of Literature

4.1 Theoretical Framework

4.1.1 Transaction Utility Theory

Thaler (1985) highlighted that the total utility is achieved when consumers acquire goods and services in the market at a

desirable rate which is neither high nor low. Transaction utility is the difference between the purchase price and the reference

price of the product or service in the market. From the psychological stand point, it involves the behavior that consumers exude

when they receive a better deal in the market from the transactions they make. When consumers buy the product at a cheaper


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price, they tend to make repeated purchases because of they want maximize their utility before the prices rise (Lichtenstein,

Burton & Netemeyer, 2010; Grewal & Monroe, 2018).

Lichtenstein, Burton and Netemeyer (2010) showed that coupons influenced how consumers perceive transaction utility and

discovered that besides being offered at a lower price it has components that are unique to transaction utility for example, the

reference price. Customers were comparing the buying price with internal reference price to determine whether they were

receiving better deals depending on their financial capabilities.

According to Grewal and Monroe (2018), comparison between the prices in general will help customers in making good

decisions before they buy a given product that will enable the achieve total utility. The study also asserted that psychological

satisfaction is realized when the buyers receive better deals in the market. The results showed that comparison changes how

buyers perceive transaction utility which enhances their perception of achieving total utility hence finally buying the promoted

product.

Transaction utility theory can be used by telecommunication firms to predict how consumers make decision from a price-based

point of view and whether they will repeat the transaction. Kim, McNeil and Chung (2012) used the theory to provide relationship

between sales promotion and the pleasure derived from increased cognitive satisfaction.

4.1.2 Prospect Theory

The theory proposes that consumers usually perceive their outcomes from the choices they make as loss or gain reference to a

point (Kahneman & Tversky, 2014). According to Diamond and Campbell (2009); Diamond and Sanyal (2010), the way

consumers’ perceive the outcomes will determine the method adopted by the firm. They proposed that promotions that are non-

priced i.e. premium offers will be viewed as gains while price promotions i.e. price off will be viewed as reduced losses as they

integrate the promotional gain from the purchase price.

Diamond and Campbell (2009) found that non-priced promotions segregate the cost of buying goods or services hence

lowering the internal reference price while those that are priced integrates the purchase price of the product. Diamond and Sanyal

(2010) predicted that price promotions rarely chosen unlike non-price promotions because it reduces losses. From the comparison

drawn consumers, price promotions are preferred because it reduces losses.

Telecommunication firms use the theory to categorize sales promotion strategies in terms of how they are viewed by the

consumers. This classification can be in terms of price perception and non-cognitive behavior of the customers (William &

Jonson, 2010). The theory can also apply by marketers in the pricing of the various sales promotion strategies used by the industry

such as low call rates at stipulated times (Joel & Dickson, 2012).

4.1.3 Adaptation Level Theory

The theory states that consumers will at all times have a level price for goods and services acting as reference price (Monroe,

2009). The price of the product that the customer pays now is compared with past prices paid to similar products. It acts as a

means deciding prices that customer will pay for the commodities they buy from the market hence it referred to as internal

reference price (Gurumurthy and Winer, 2015).

Internal reference point results in consumers’ response to price promotion (Lattin & Bucklin, 2009; Kalwani & Yim, 2012). It

frequently leads the firms that sell products to lower the reference price quoted for products that are being promoted in the market.

Consumers will sometimes be unwilling to pay the amount charged for a given product when they have the lowered reference

price after the promotion done by the firms is over. Winer (2016) used a linear probability model and discovered that the

probability of buying a brand is a function of the observed price less reference price. From the conclusion, the model predicts the

probability of purchasing the product is preferred because it incorporates observed prices unlike other models.

Kalwani, Yim, Rinne and Sugita (2010) examined customers’ price expectations for a brand and found that it is because of

customer choice of brand and their judgments. Consumers’ price expectations from the studies showed that they resulted from

situational factors, features portrayed by customers at the time of purchase and prices they paid for the products in the past. The

choice of consumer price expectations predicted included only observed prices from the brand choice model. Mayhew and Winer

(2012) highlighted the effects of reference prices (internal and external) when individual consumers make a purchase and found

that the two variables had a significant effect on purchasing probabilities.

This theory has been applied in the determination of the effects of sales promotion strategies such as bonuses (airtime bonuses)

and price promotions (low call rates at stipulated times) on purchase quantities of consumers. Whereby this theory predicts an

optimistic effect of these strategies on the customer behavior (Omkar, 2016).

4.1.4 Assimilation Contrast Theory


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It states that external reference price influences the price the consumer will use to gauge the preferred price they are going to

pay for the products together with other promotional methods used by firms. During advertisement and in-store communication

done by firms, lower promotional prices and higher regular prices are introduced showing the savings the customers makes when

the use a lower promotional price. Due to this theory, internal reference price is less than the external reference price making

consumer’s perception of the products sold in the market true. Internal reference price is shifted towards the higher external

reference price increasing favorability and promotional evaluations. However, when contrast between internal and external

reference prices standard, exceeds regular price the prices will be perceived as false. Studies done have confirmed that lower

promotional price advertisements will lead customers to have higher perception with reference to savings they make (Blair &

Landon, 2009; Bearden, Lichtenstein & Teel, 2014; Berkowitz & Walton, 2010; Urbany, Bearden & Weilbaker, 2008). The

studies discovered that consumers perceptions increase the value if external reference prices of is high hence discounted (Urbany,

Bearden & Weilbaker, 2008).

Blair and Landon (2009) highlighted from their finding that promotional advertisements with higher promotional price

produces large savings due to consumers’ perception. Studies carried out discovered consumers expressed vigilance on high

external price reference claims because they understood it was 25% higher. Hence when the advertised regular and promotional

price has a larger percentage difference, consumers will consider it as false. Berkowitz and Walton (2010) determined how

consumers perceive their savings and willingness to buy due to advertised reference price and image portrayed by the store and

found out that it increases their self-worth leading to a purchase.

The adoption of different regular and promotional prices on product evaluation methods used by customers showed that

perceptions of the products increased due to higher percentage discounts on the products making the product popular at the same

time the consumers will not switch to another product (Della Bitta, Monroe & McGinnis, 2011). Advertisements of products that

shows better price evaluations increased the customers need for the product hence willingness to make a purchase including

presenting the lower promotional price and the percentage off if information format received the highest ratings. Advertisements

that presented the dollar amount off and regular price were significantly rated higher as they presented a percentage off.

Bearden, Lichtenstein and Teel (2014) assessed how the effect of external reference prices in newspaper advertisements,

coupon and how brand with varying labels affect consumers appeal to certain products. They found that it positively improved

customer’s attitudes hence increasing their willingness to buy the products irrespective of the price level. The attitude and

willingness to buy the products did not change how consumers perceive the use of coupons. Addition of reference prices

positively changed how consumers perceive the prices charged attitude and willingness to buy the products.

Assimilation contrast theory can be used to predict consumers’ behavior on the sales promotion strategies such as price

discounts (low call rates). Gupta (2012) posits that consumers behavior do not change because of the sales promotion strategy but

up to a certain percentage (15%) above the purchase price. It was also established that a higher percentage of about 40% of the

price discount does not affects the consumers’ behavior.

5. Conceptual Framework

A conceptual framework is a graphical representation of the theorized interrelationships of the variables of a study Kothari and

Gang (2014). The conceptualization of variables in any academic study is important because it forms the basis for testing

hypothesis and coming up with generalizations in the findings of the study.


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Independent Variables Dependent Variable

Figure 1: Conceptual Framework

6. Review of Variables

6.1 Loyalty Schemes

Customer loyalty scheme is a retail marketing strategy that carries with it benefits to both the customer and business. It is also

referred to as reward program. It is normally away of attracting customers to make a repeated purchase of the retailers’ products

by offering gifts, special discount and points to collect and exchange there items with other items. The customer’s loyalty is the

cheapest way to carry out brand awareness. It comes in many variations depending on how the retailer set it up. Retailers design

many rewards i.e. shopping vouchers and items they can use to purchase certain goods at a reduced price (Adcock, 2012).

In order to reap benefits in the future, strategies designed by the retailers must be centered on building brands making them to

grow in consistent manner. “Customer is king of past and now the emperor of future.” Keeping this in mind the retailers have to

work accordingly to design customer centric methods that will lead to delightment and satisfaction of customers. Developing

relationships with customers will succeed only if there are benefits to the customer. Therefore, retailers need to find to convince

customers so that they can change their attitude and behavior in order to realize profits. The retailer has to sell products that the

customers will appreciate and value at the same time it should not be expensive. Retailers have to ensure that customers are

satisfied when they buy a product by creating more value for them. (Kohli & Jan 2009).

Shun et al (2014) researched on customer loyalty shows how they are linked together with the business as a result of consumer

satisfaction. Although loyal consumers get satisfied, this does not necessarily lead to loyalty. Satisfaction-loyalty conundrum leads

the author to investigate consumer satisfaction response that shows loyalty and to what extent it is part of loyalty response.

Loyalty formation arises in a market because customers are satisfied with the products being supplied. Sometimes it becomes

insignificant because the roles of determining social bonding in the market are omitted as a result of the use of current models.

However, with the use of additional factors, loyalty schemes lead to product superiority as a result of social bonding in the market

with the involved parties. Since they are not achieved by consumers’ market wise, they will eventually erode. There is insufficient

conclusion from the study because retailers cannot achieve loyalty due to the consumer dissatisfaction. To other retailers,

consumers strive to achieve satisfaction thus forming the platform for the consumer marketing community.

Though underlining difficulty of loyalty definition, the report in practice how loyal customers are profitable and the benefit of

retaining them by carrying out studies on defections and complaints through zero defection schemes. Therefore, anything that

might undermine customer loyalty should be identified and eliminated because it creates value. The studies that have been carried

out shows that quality of services guarantees what customers will receive hence marketers must explore a range of services to

Loyalty Schemes

Bonga Points

Tunukiwa Points

Mpesa Scholarships

Sweepstakes

Scratch and Promotion

Lipa na Mpesa Promotion

Lucky Number Wins

0

Consumer Behavior

Repeat Purchases

Referrals

Brand Switching

Airtime Bonuses

Call Limit Bonuses

Data Bundles Bonuses

SMS Bonuses

Discounted Call Rates

Post Paid Calls

Discounted Call Rates

Discounted International Call

Rates


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meet customer’s needs. Another way by locking and isolating them from competitor’s efforts both are very complementary even

though they are not incompatible due to clients’ management (Alan, Dick & Kunal, 2010).

Kibeh (2013), through the studies he carried out on relationship between loyalty schemes in the Telecommunication market in

Kenya established that loyalty schemes such as tunukiwa points, Mpesa Scholarships and Bonga points are important because of

their role on the sensitivity of services offered in the industry. He further stipulated that these schemes are important in an industry

where customers are not loyal to one brand.

6.2 Sweepstakes

Sweepstake is a contest in which money or prizes are given to winners picked by chance, it also referred to as a lottery in

which the prize consists of the money paid by the participants. In one way or the other, lotteries touch the lives of each and every

person. Their main aim of sweepstakes to the institutions, clubs, organizations, and governments is to increase their revenues as

they provide public goods. Lotteries are usually in form of a promotional mix done by firms in markets. Compensation package is

given to athletes or managers who are stars involve a lump sum pay as a reward while other activities only display characteristics

of lotteries (Mulhern & Padgett, 2015).

Some forms of sweepstakes involve customers participating in a contest because of the value of the prize they would like to

win (Ward & Hill 2011). Sweepstake is not commonly used locally compared to other areas like in Hong Kong where this sales

promotion tool is very popular not only in shopping malls but also in social gathering where lucky draws are held (Neslin, 2012).

Sweepstakes and numbers games were considered to be the source of income for crime syndicates in the urban areas

(Clotfelter & Cook, 2009). In earlier years, sweepstakes were the only reasonable lottery products where participants who bought

tickets had to wait to find out whether their choices conforms with the lottery company choices to win a prize. Eventually these

lotteries became widespread in many states. In recent years, the Powerball and Mega Millions consortia have been emerging in the

United States because it has huge potential winnings (Mary, 2013).

The telecommunication industry in Kenya is trying to adopt sweepstake as a sales promotional tool because customers who

participate have always won prizes that include houses and money if they are lucky enough. This is because it has the ability of

increasing customer’s luck as well as improving their taste and preferences (Zhanting & Yang, 2009).

In this sales promotional technique, no skill is required to enter the competition at the same time it is used by businesses in

creating brand awareness in the market (Ferrel & Hartline, 2008). Following Morgan and Sefton (2010), application of

sweepstakes raises revenues for the provision of public goods which has complementary effect on the consumers (Morgan, 2013).

Safaricom Limited launched of Lipa Na M-PESA payment services as primary tool to enable various subscribers to win

various prices in conjunction with various retailing outlets in the Country such as Tuskeys. (Safaricom, 2015). Salome (2017)

established that mobile money transfer strategies such as Lipa Na Mpesa are some of the strategies adopted in the telecom

industry to broaden the market coverage. Muriuki (2017) further strategies such as scratch and win are some of the strategies

adopted in the Kenyan Telecommunication firms to gain competitive advantage.

6.3 Airtime Bonuses

The package allows the consumers to get extra products when they purchase them at a given price. For example, they can

receive a bonus pack for two products for the price of one from a sales company. In these scenarios, the bonus pack is considered

a gain for buyers because they get the product for free. However buying a bonus pack is at times not beneficial to consumers

because they are viewed as losses on the side of the consumers (Yin, Xu; Jin-Song & Huang, 2014).

According to Darko & Erick (2012) customers are usually given an extra when they purchase a product in a market without

having to pay more but just the normal price because the prices doesn’t rise. The use of bonuses is considered the best way to

remain in the market where there is high competition because it helps businesses by popularizing their brand at the same time it

prevents customer from changing their tastes and preferences.

For firms using bonus packs, when a product is purchased in need of the item, it may not motivate customers as expected, the

bonuses may be different ranging from over the counter bonuses, packed bonuses, branded bonuses and loyalty bonuses, one gets

additional item or service for free. This saves customer’s money as the bonus adds extra benefit or value to them. Bonus packs

popularizes the brand it’s attached to enabling customers to strengthen their tastes by attracting competition amongst them as

established products introduced are of different sizes. For instance, Safaricom offers bonuses of airtime after the consumer reaches

a certain limit of using the airtime; this has seen most consumers venturing into purchasing of airtime so that they can be awarded

the bonus to make more calls (Pride and Ferrell, 2008).

Safaricom distinctively offers voice bonuses, data bonuses, SMS bonuses to its subscribers (Safaricom, 2015). Ochieng (2017)

noted that the evaluation of the bonus reward system leads to customer retention.


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6.4 Discounted Call Rates at Stipulated Time

With price-offs, the consumers’ purchasing the product or service will pay less than the regular price (Pride & Ferrell, 2008).

Like coupons, this method can also increase sales volume as customers will be involved in impulse purchases and serve as a

strong incentive used in product introduction in the market. This method is easy to control because it works for specific purposes.

However, price-offs often leads to reduction in the purchase price of the product hence makes improving products image cheap

(Pride & Ferrell, 2008).

Consumers save some money after purchase mostly because they pay less for the goods being sold in the market as a result of

price-off. This is where the brands sold in the market cost less due to some form of price cut and is usually the common

promotional technique used by firms. The reduction in price enables the customers to save the money in the purchase because they

get the products with the same features at a lower price.

The disadvantage of price-offs or discounts, is that it discourages brand switching by users and launching of new products by

competitors (Smith & Schultz, 2015). Pricing of the products by the mobile telecommunication service providers in the

Telecommunication market is important (Kollmann, 2010). It is made up of the buying price and includes the call and rental

charges. In a competitive market like Kenya, consumers are usually provided with many choices and opportunities from which to

choose from before make decision on what they want.

A firm that sells its products cheaply will attract more consumers making it dominant in the market i.e. consumers choosing

the telecommunication network hence leading to increased consumer usage of its services. Marketing of the products by

companies and firms like Safaricom Limited will only be productive if they have many customers in the markets and the methods

they use to price them (Kollmann, 2010).

Draganska and Jain (2013) added that companies should adopt product differentiation strategy when selling their products so

as to attract more customers and to influence the purchase decision they make regarding a product or service needed at all times

by them. Usually from 10pm-6am Safaricom charges Ksh 2 per minute and during the normal times they charge Ksh 4 per minute

for Safaricom to Safaricom calls, this has led to majority of the callers waiting for the off-peak hours to make calls.

6.5 Consumer Behaviour

Refers to the process of making decision that includes purchasing, evaluating, utilizing and disposing of products (Kottler,

2014). It also involves choosing, buying and the use of goods and services to satisfy consumer wants. Consumer behavior involves

different processes including many factors, specificities and characteristics that influences the decision made by the consumer,

their shopping purchasing behavior, habits, the brands they buy and the retail shop they go to. A buying decision contributes to

these factors and usually when a consumer tries to choose the goods and services he likes most; he/she will choose ones that

provide greater utility. Then the consumers of the money they will spend on those commodities. Lastly, the consumer will

consider the prices of the commodities together with the market prevailing conditions in order to make decision on what to buy for

consumption. Meanwhile, other factors influencing the purchase decision consumers include social, cultural, economic, personal

and psychological (Wayne & Hoyer, 2010).

Belch and Belch (2010) clearly shows that consumer behavior begins way before the goods are acquired and that it is not just

the purchase of goods/services creates attention. The buying process normally starts with customers needing the product then the

selection from the provided alternative products depending on their relative disadvantages and advantages. This leads to extensive

research carried out internally and externally followed by decision-making process to buy and utilize the goods. Post buying

behavior will enable the sellers to know whether the product has been a success or not by looking at the sales volume.

7. Research Methodology

7.1 Research Design

Research design that was used to establish the findings and conclusion of the study was descriptive research design. Orodho

(2013) explained that descriptive research design is a method used to collect data through interviews or administering

questionnaires to individuals to obtain information. The information obtained from this design is about customer’s behavior,

feelings and ideologies towards the products being sold in the markets. The design uses the information obtained the way it is to

show how consumer behavior influence marketing activities (Orodho & Kombo, 2014). Descriptive study helped to describe and

ascertain the characteristics of the variables important at any given moment (Sekaran & Bougie, 2011).

7.2 Target Population


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The target population refers to the specific group of individuals or items relevant to the study being carried out (Mugenda &

Mugenda, 2008). The target individuals for the study were staffs of various Safaricom Outlets which is estimated to be 100

members of staff from employment categories. According to Safaricom Website (2019), there are four (4) outlets in Mombasa

County. This target population was most appropriate because it had specific information about the effects of sales promotion on

consumer behavior.

Table 1 Target Population

Category Target Population Percentage %

Senior Managers 10 10

Managers 20 20

Administration Staff 50 50

Sales Persons 20 20

Total 100 100

7.3 Sample Size

Sample is the portion of the population that is chosen for carrying out research process (Naoum, 2009). The reason why a

sample size is selected is because it generalizes the findings to a larger population. A sample of 100 individuals was chosen for the

study. The research adopted census technique, since the target population is small, according to Cooper and Schindler (2011), if

the population is small, census technique is appropriate, hence target population became the sample.

7.4 Data Collection Procedure

The Safaricom outlets were briefed concerning the purpose of carrying out the study. The data collection procedure involved

getting authorization letter from the Chairman of Department at Jomo Kenyatta University, Mombasa Campus and from the

Safaricom outlets in order to begin data collection. Copies of the permit were then distributed to the administration of Safaricom

Outlets that were used gather information. The researcher employed drop and pick method, where printed questionnaires were left

to the employees of Safaricom Outlets so that they can fill at their own convenient time. Follow ups were made through phone call

after which the filled questionnaires were collected after one week.

7.5 Data Processing, Analysis and Presentation

Silvia and Skilling (2016) showed that evaluation and analysis of data helped to determine its relevance including whether it

can be used to make good decision. The collected questionnaires were cleaned, coded before being entered into Statistical Package

for Social Sciences (SPSS) to create a data sheet for analysis and presentation of findings. Correlation, multiple regression

analysis, ANOVA and model summery generated as inferential statistics established relationship among the study variables.

Tables, graphs, pie charts etc. were used to present data. According to Orodho and Kombo (2014) this model was used to establish

relationships between independent (sales promotion strategies) and dependent variables (consumer behavior) as used previously in

other empirical studies.

The regression model took the following form:

Y= β0+β1X1+ β2X2+ β3X3+ β4X4+ ε

Where: Y = Consumer Behavior

β0 = Constant

β1 to β4 = Coefficient of determination

X1 = Loyalty Schemes

X2 = Sweepstakes

X3 = Airtime Bonuses

X4 = Discounted Call Rates at Stipulated time

ε = error term (5%)

8. Research Results

8.1 Descriptive Statistics

8.1.1 Loyalty Schemes

The first objective of the study was to determine the effect of loyalty schemes on the consumer behavior of Safaricom Limited,

hence the respondents were asked to indicate the extent in which they agree with the following statements on loyalty schemes.


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Table 2 Loyalty Schemes

Statement Mean Std Dev.

Loyalty schemes has enabled the organization

to acquire new customers. 3.520 1.344

The program creates a greater cognitive consistency

in decisions on the part of the customer. 3.403 1.435

Bonga Points as a loyalty scheme adopted by

Safaricom has enabled subscribers to redeem for rewards. 3.325 1.362

The introduction of Tunukiwa points by Safaricom has

led to increased customer loyalty. 3.325 1.446

Mpesa scholarship offered by Safaricom has enabled

the organization to penetrate rural areas of Kenya. 2.844 1.442

Valid N = 77

Overall Mean 3.284 1.406

Table 2 indicates that loyalty schemes have enabled the organization to acquire new customers with the highest mean score of

3.520. The respondents also indicated that the program creates a greater cognitive consistency in decisions on the part of the

customer with the mean score of 3.403. There was a tie of on the extent of agreement on those who indicated that Bonga Points as

a loyalty scheme adopted by Safaricom has enabled subscribers to redeem for rewards and those who indicated that the

introduction of Tunukiwa points by Safaricom has led to increased customer loyalty with both a mean score of 3.325. The

respondents indicated that Mpesa scholarship offered by Safaricom has enabled the organization to penetrate rural areas of Kenya

with the least mean score of 2.844. Finally, the analysis showed that the overall mean of 3.284 and overall standard deviation of

1.406. the above findings are in line with those of Kibe (2013) who established that loyalty schemes in the Telecom industry such

as Tunukiwa and Bonga Points play an important role on the sensitivity of the customers.

8.1.2 Sweepstakes

The second objective of the study was to establish the effect of sweepstakes on the consumer behavior. The findings were

recorded in Table 3.

Table 3 Sweepstakes

Statement Mean Std Dev.

Sweepstakes play as a motivating tool for more

customers to continue buying from the organization. 3.273 1.603

Lipa na Mpesa promotion has led to the increase use

of the service especially during festive season. 3.723 1.263

Lotteries serve as a way to raise revenue for the organisation

for corporate social responsibility which is a form of marketing. 3.644 1.486

Furahi na Safaricom promotion strategy led to increased sells

of scratch cards. 3.558 1.391

This technique builds emotional connectivity with intended

audiences hence an important marketing tool. 3.481 1.464

Valid N = 77


From Table 3 respondents agreed that Lipa na Mpesa promotion has led to the increase use of the service especially during

festive season with the highest mean score of 3.723, lotteries or sweepstakes serve as a way to raise revenue for the organisation

for corporate social responsibility which is a form of marketing with a mean score of 3.644, the respondents also agreed that

Furahi na Safaricom promotion strategy led to increased sells of scratch cards with a mean score of 3.558. The analysis showed

that sweepstakes builds emotional connectivity with intended audiences hence an important marketing tool with a mean score of

3.481 and finally on the statements the respondents indicate that sweepstakes play as a motivating tool for more customers to

continue buying from the organization with a mean score of 3.273. Finally, the analysis showed that respondents agreed with an

overall mean of 3.480 and overall standard deviation of 1.441. the above findings concurred with Salome (2017) who established

that mobile money transfer strategies such as Lipa Na Mpesa are some of the strategies adopted in the telecom industry to broaden

the market coverage.

8.1.3 Airtime Bonuses

The third objective of the study was to establish the effect of airtime bonuses on the consumer behavior of Safaricom Limited.

The respondents were asked to indicate the extent in which they agree with the following statements on airtime bonuses and the

findings were illustrated on Table 4.


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Table 4 Airtime Bonuses

Statements Mean Std Dev.

This practice contributes to impulse spending by

the customer thus increased revenue for the company. 3.675 1.251

Airtime bonuses allows the organization to create

additional product at the same price. 3.831 1.361

This scheme allows Safaricom ltd to reduce

customer brand switching at a minimal cost. 3.766 1.170

Airtime bonuses are used a strategy to create a

competitive advantage. 4.000 1.338

“Storo bonus” strategy adopted by Safaricom ltd

has led to increased revenue since its initiation. 4.143 1.048

Valid N = 77


Table 4 indicated that the respondents agreed that “Storo bonus” strategy adopted by Safaricom ltd has led to increased

revenue since its initiation with the highest mean score of 4.143 and also they agreed that airtime bonuses are used a strategy to

create a competitive advantage with the highest mean of 4.000. the analysis also showed that the respondents indicated that

Airtime bonuses allows the organization to create additional product at the same price with a mean score 3.831 and also the

strategy allows Safaricom ltd to reduce customer brand switching at a minimal cost with a mean score of 3.766. Finally, on the

statements the analysis showed that the respondents indicated that airtime bonuses contribute to impulse spending by the customer

thus increased revenue for the company with a mean of 3.675. Finally, the analysis showed that the overall mean of 3.883 and

standard deviation of 1.234 on the effect of airtime bonuses. The above findings concurred with Ochieng (2017), who established

that bonuses offered by the Telecom firms in form of airtime and SMS increases customer retention.

8.1.4 Discounted Call Rates at Stipulated Time

The final objective of the study was to examine the effect of discounted call rates at stipulated time on consumer behavior.

Where the respondents were asked to indicate the extent in which they agree with the following statements.

Table 5 Discounted Call Rates at Stipulated Time


This strategy can serve as a strong incentive

used in product introduction. 4.351 1.109

Discounted call rates at stipulated time leads to tariff

congestion at these times leading to poor service delivery. 3.844 1.204

International call rates are discounted hence increased

competitive with online call services such as Skype and zoom. 3.805 1.283

Post-paid call rates increase customer loyalty. 4.104 1.257

Differences in service rates plays an important role in the

consumers’ consumption pattern of the Safaricom Network. 3.753 1.388

Valid N =77


The analysis showed that discounted call rates serve as a strong incentive used in product introduction with the highest mean

score of 4.351, the respondents agreed that post-paid call rates increase customer loyalty with mean score of 4.104. The

respondents also indicated that discounted call rates at stipulated time leads to tariff congestion at these times leading to poor

service delivery with a mean score of 3.844, international call rates are discounted hence increased competitive with online call

services such as Skype and zoom with a mean score of 3.805 and finally differences in service rates plays an important role in the

consumers’ consumption pattern of the Safaricom Network with the lowest mean score of 3.753. Finally, the analysis showed an

overall mean of 3.971 and overall standard deviation of 1.248. The above were in line with those of Wuang (2015) who

postulated that organizations should implement strategies such as discounted call rates for the telecommunication industry without

reducing the service quality in order to improve brand loyalty and sales.

8.1.5 Consumer Behaviour

The respondents were finally asked to indicate the extent in which they agree with the following statements on consumer

behavior (post sales promotion) and the findings were recorded on the table below.


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Table 6 Consumer Behaviour


Customers are able to refer to friends and relatives

on the incentive. 4.221 1.210

Sales promotion leads to repeat purchase of the

organizations services. 3.909 1.330

It has led to increased customer loyalty to the organizations

products hence reduced brand switching. 4.000 1.308

Customers are able to file complaints in case of dissatisfaction. 4.013 1.208

The promotional practices have led to customer satisfaction. 4.065 1.250

Valid N = 77


From the table above it was evident that respondents strongly agreed that customers are able to refer to friends and relatives on

the incentives offered by Safaricom with a mean score of 4.221 and they also agreed that promotional practices lead to customer

satisfaction with a mean of 4.065. The respondents also indicated that customers are able to file complaints in case of

dissatisfaction with a mean of 4.013, sales promotion strategies lead to increased customer loyalty to the organizations products

hence reduced brand switching with a mean score of 4.000 and finally, sales promotion leads to repeat purchase of the

organizations services with a mean score of 3.909. Finally, the analysis showed that the respondents strongly agreed with the

statements with an overall mean score of 4.042 and overall standard deviation of 1.261. The above findings concurred with those

of Aaker, (2016) and Manaled et al, (2017) who established that monetary sales promotion strategies such as discounted call rates

and financial incentives encourages brand switching and price sensitivity.

8.2 Inferential Statistics

To establish the relationship between the independent variables and the dependent variable the study conducted correlation

analysis which involved coefficient of correlation and coefficient of determination.

8.2.1 Coefficient of Correlation

In this section Pearson correlation was performed in order to establish the relationship between the independent variables and

dependent variable. According to Sekaran and Bourgie (2010), the relationship between the two is assumed to be linear and it

ranges between -1 to +1. Kothari (2014) also posits that Pearson correlations also show the strength between independent and

dependent variables.

Table 7 Coefficient of Correlation Results

Loyalty

Schemes

Sweepstakes Airtime

Bonuses

Discounted

Call Rates

Consumer

Behaviour

Loyalty

Schemes

1

77

Sweepstakes

.683**

1

.000

77 77 77

Airtime

Bonuses

.276* .571

** 1

.015 .000

77 77 77 77

Discounted

Call Rates

.040 .124 .353**

1

.727 .283 .002

77 77 77 77

Consumer

Behaviour

.206 .293**

.380**

.652**

.072 .010 .001 .000

77 77 77 77

From the analysis it was evident there exist a positive correlation between independent variables; discounted call rates, airtime

bonuses, sweepstakes and loyalty schemes with the dependent variable (consumer behavior). The analysis showed coefficient of

correlation of 0.652, 0.380, 0.293 and 0.206 respectively. The analysis also showed there exists a positive correlation between the

independent variables. The above findings are in line with those of Darko (2012) who established that sales promotion influences

consumer buying behavior in the Ghanian Telecom Industry.

8.2.2 Analysis of Variance (ANOVA)


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To test the significance of sales promotion strategies on consumer behavior, the study used ANOVA analysis.

Table 8 Analysis of Variance

Model Sum of Squares df Mean Square F Sig.

1

Regression 406.747 4 101.687 16.345 .000

Residual 447.929 72 6.221

Total 854.676 76

Based on table 8, the p-value was 0.000 which was less than the significance level of 0.05 at 95% confidence level hence the

relationship between sales promotion strategies and consumer behavior was statistically significant. The analysis showed that the

model was significant at F= (4, 72) 16.345, p=0.000

8.2.3 Coefficient of Determination (R2)

To determine the suitability of the model in explaining the relationship between independent variables (discounted call rates,

airtime bonuses, sweepstakes and loyalty schemes) and the dependent variable (consumer behaviour), coefficient of determination

was done through linear regression.

Table 9 Coefficient of Determination R2

Model R R Squared R Squared Adjusted Std Error of Estimate

1 0.690a

0.476 0.447 2.494

a, Predictors: (Constant) Discounted Call Rates, Airtime Bonuses, Sweepstakes, and Loyalty Schemes

The variables explained only 44.7% (Adjusted R squared = 0.447) of the consumer behavior. Clearly, there are factors other

than the four proposed in this model which can be used to explain consumer behavior in the Telecom Industry. However, this is

still a good model as Cooper and Schindler, (2013) pointed out that as much as lower value R square 0.10-0.20 is acceptable in

social science research.

8.2.4 Regression Analysis

A regression analysis was carried out in order to explain the relationship between independent variables (discounted call rates,

sweepstakes, airtime bonuses and loyalty schemes) and dependent variable (consumer behavior).

Table 10 Regression Coefficient

Model Unstandardized Standardized

Coefficients Coefficients

B Std Error Beta t Sig

Constant 6.566 2.037 3.223 0.002

Loyalty Schemes 0.70 0.109 0.077 0.645 0.021

Sweepstakes 0.70 0.079 0.123 0.883 0.020

Airtime Bonuses 0.055 0.084 0.074 0.654 0.015

Discounted Call rates 0.514 0.78 0.607 6.624 0.000

Therefore, regression model was:

Y = 6.566 + 0.7X1 + 0.7X2 + 0.055X3 + 0.514X4 + e

Where;

Y = Consumer Behavior

X1 =Loyalty Schemes

X2 = Sweepstakes

X3 = Airtime Bonuses

X4 = Discounted Call rates

The results indicated that a unit increase in loyalty scheme results in a 70% (0.70) positive improvement on consumer

behavior, a unit increase in sweepstakes also results in a 70% positive improvement on consumer behavior. On the other hand, a

unit increase on airtime bonuses results in 5.5% (0.055) on consumer behaviour and finally a unit increase in discounted call rates

results in 51.4% positive improvement on consumer behavior. This therefore shows that all the four variables have a positive

relationship with consumer behavior. The above findings support those of Hanssens and Siddarth (2012) who established that that

price promotion elicits purchased quantity for established brand in mature market and temporary changes in product and brand

choices.


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8.2.5 Hypothesis Testing

To test four hypotheses statements, multiple regression was conducted using the SPSS to determine the p-values for the

independent variables; loyalty schemes, sweepstakes, airtime bonuses and discounted call rates. P-values were compared with 5%

(0.05) significant level, such that when p-value was more than the significance level, the model was considered alternative

hypothesis was rejected.

Table 11 Summary of Hypothesis Test Results

Hypothesis P-Values Decision

H01: There is a significant effects of loyalty schemes

on consumer behavior at Safaricom Limited. 0.025 Accept

H02: There is a significant effect on sweepstakes on

consumer behavior at Safaricom Limited. 0.020 Accept

H03: There is a significant effects of airtime bonuses

on consumer behavior at Safaricom Limited. 0.015 Accept

H04: There is a significant effect of discounted call

rates on consumer behavior at Safaricom 0.000 Accept

9. Discussion of Key Findings

The analysis on the study variables showed that the respondents agreed with the various statements on loyalty schemes with an

overall mean of 3.284 and overall standard deviation of 1.406 and on sweepstakes the respondents agreed with an overall mean of

3.480 and overall standard deviation of 1.441. The respondents also agreed with the overall mean of 3.883 and standard deviation

of 1.234 on various statements on airtime bonuses and they also agreed with the various statements on discounted call rates with

an overall mean of 3.971 and overall standard deviation of 1.248. Finally, on the consumer behavior, the respondents strongly

agreed with the various statements with an overall mean score of 4.042 and overall standard deviation of 1.261.

On the inferential statistics, the correlation analysis showed that there exists a positive correlation between various sales

promotion strategies and consumer behavior. The analysis also showed that the correlation was statistically significant except for

loyalty schemes with a p-value of 0.072 which was greater than 0.05. the analysis of variable also showed that the relationship

between sales promotion and consumer behavior was statistically significant with a p-value of 0.000 which was less than 0.05 and

on the correlation coefficients the analysis showed that loyalty schemes, discounted call rates, airtime bonuses and sweepstakes

could only explain 44.7% of consumer behavior. Finally, on the regression coefficient showed that a unit increase on various sales

promotion strategies would result in a positive improvement on consumer behavior of the Telecommunication industry.

10. Conclusion and Recommendations

10.1 Conclusion

Based on the data analysis and findings, the study concludes that loyalty schemes, airtime bonuses, sweepstakes and

discounted call rates positively affects consumer behavior at Safaricom Limited, since the correlation analysis showed a positive

relationship between independent and dependent variables. The study also concludes that there is a positive relationship between

sales promotion strategies adopted by the telecom giant. This was supported by the findings and conclusion of Darko (2012) on

the Ghanian Telecom Industry.

The study also concludes that discounted call rates, sweepstakes, airtime bonuses and loyalty schemes partly explains

consumer behavior in the telecom industry, there are other techniques of sales promotion which are involved that is branded

souvenirs and premiums. Finally, the study concludes that the mentioned implementation of the sales promotion strategies has

influenced the consumer behavior in terms of customer loyalty, repeat purchases, brand switching and consumer satisfaction at

Safaricom Ltd. This concurred with the findings and conclusions of Hanssens and Siddarth (2012) who concluded that price

promotion elicits brand changes and market brand choices. Samson (2015) also concluded that sales promotion triggers brand

switching in the telecom industry since consumers are sensitive to monetary and non-monetary incentives.

10.2 Recommendations

Kenya telecommunication industry must consider various factors such as consumer’s behavior when considering what must be

included in the promotional mix for the strategy to be successful. The study suggests that each firm in the industry should engage

in research and development in order to come up with suitable products which positively influences consumer behavior and also

market research should be carried out in order to determine the success of these strategies.


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The study also recommends that discounted call rates and airtime bonuses should be implemented with caution since they

might result in organisation losses. They should be implemented concurrently with coupons and premiums. Greater emphasis

should also be put on the attached services rather than sales return.

Telecom firms should make follow ups on its customers for long term gains since sales promotion is short term-oriented

strategy. The study finally recommends that management of the firms should focus on the unique sales promotion strategies so as

to have a long-term success on firm’s sales volume, market share and reduce brand switching of customers in the

Telecommunication Sector.

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INTERNATIONAL JOURNAL OF ACADEMICS & RESEARCH (IJARKE) · theory, prospect theory transaction utility theory, and assimilation contrast theory). Most studies in this field in Kenya