SALES PROMOTION AND ORGANIZATIONAL PERFORMANCE

ABSTRACT

This study examined the impact of sales promotion on organizational performance and the case study adopted was Indomie instant noodles. The study adopted the survey research design, simple-random sampling technique and regression analysis, an online questionnaire was administered to students residing in University of Benin hostels and a total of 130 people responded. However, out of the 130 responses collected, 115 were valid and 15 responses were deemed invalid. The respondents’ demographic data collected was analyzed using descriptive statistics (mean and standard deviation) while the main survey questions regarding sales promotion and organizational performance was analyzed using inferential statistics (regression analysis) with the help of SPSS version 22. Four sales promotion tool (discounts, premiums, coupons and free samples) were analyzed as independent variables in relation to organizational performance and the result showed that discounts, premiums and free samples have a significant relationship with organizational performance because their p-value was less than 0.05, while coupons was seen to have an insignificant relationship with organizational performance, hence it’s pvalue was greater than 0.05. The r-squared value was 0.623 which entails that sales promotion accounted for 62.3% of the variations in organizational performance and therefore the study concluded that sales promotion has an impact on organizational performance and it made recommendations that further research should be carried out on a larger population like distributors and retailers of Indomie instant noodles.