The Impact of Seasonal Discounts on sales and Customer Retention in

Retail

Name: Nida Shaikh Nizamuddin

Roll no 12
Course Name: MCOM Part 2 Business Management
Semester III
Submission: 28-02-2025

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 Table of Contents

Sr Contents Page No.

No.
1 Summary 3-5

2 Introduction 6-30

3 Objective 31-32

4 Literature Review 33-44

5 Research Methodology 45-52

6 Data Collection 53-64

7 Data Analysis 65-67

8 Results 68-69

9 Discussion 70-72

10 Conclusion 73-74

11 References 75

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 Summary

Seasonal discounts have become an essential strategy in the retail industry,

influencing both sales performance and customer retention. The implementation
of these discounts occurs during specific periods such as Black Friday,
Christmas, New Year, Back-to-School seasons, and other festive or clearance
events, providing retailers with opportunities to attract customers and maximize
revenue. The significance of seasonal discounts lies in their ability to create
urgency among consumers, driving impulse purchases while simultaneously
fostering brand loyalty. This project aims to examine the overall impact of
seasonal discounts on retail sales and their long-term effects on customer
retention, considering both the advantages and potential drawbacks for
businesses. By analyzing customer behavior before, during, and after discount
periods, as well as evaluating sales trends, this research provides valuable
insights into the effectiveness of discount-driven sales strategies. This study will
also explore the role of promotional activities, digital marketing, and evolving
consumer preferences in determining the success of seasonal discounts. By
conducting an in-depth analysis of sales patterns and customer engagement, the
research will contribute to a broader understanding of how retailers can
optimize their discount strategies to enhance profitability and brand loyalty.
Furthermore, the study will assess how discounts influence brand perception,
consumer trust, and the balance between profitability and maintaining
competitive pricing strategies. This research will also examine whether seasonal
discounts create an artificial demand that temporarily inflates sales figures or
genuinely contributes to sustainable business growth.

The key findings and implications of this study will provide essential insights
for businesses aiming to balance short-term revenue gains with long-term
customer retention. One of the most critical aspects of seasonal discounts is
their ability to boost short-term revenue significantly. Retailers experience a
surge in sales volumes during major discount periods, as consumers take
advantage of reduced prices to purchase products they might have otherwise
delayed or ignored. These discounts often encourage bulk purchases and
increase average transaction values, making them an essential tool for
businesses aiming to clear out inventory and introduce new product lines.
Additionally, limited-time offers create a sense of urgency and exclusivity,
compelling customers to make quicker purchasing decisions. However, while
these strategies effectively increase sales in the short run, there is an ongoing
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debate about whether they contribute to long-term profitability or merely shift
consumer spending patterns within a limited timeframe. This study seeks to
explore whether seasonal discounts genuinely lead to increased overall revenue
or simply cause fluctuations in sales cycles by pulling forward purchases that
would have happened later at full price. Furthermore, the study will analyze the
sustainability of discounting strategies and whether they erode perceived brand
value over time, making it harder for businesses to maintain regular pricing
without losing customers. The findings of this research will highlight best
practices for retailers, helping them implement discounts in a way that
maximizes both immediate revenue and future customer engagement.
Additionally, the study will explore the relationship between discount strategies
and consumer psychology, examining whether price reductions influence brand
loyalty or merely encourage opportunistic purchasing. The long-term
implications for businesses that frequently rely on seasonal discounts will also
be discussed, including the risks of devaluing premium brands and the necessity
of supplementing discounts with superior customer experience and value-added
services.

The importance of this study extends beyond financial gains, as it also addresses
broader implications for consumer behavior, brand perception, and competitive
advantage in the retail industry. Beyond immediate sales growth, customer
retention is another crucial factor influenced by seasonal discount strategies.
While discounts attract new customers and increase foot traffic—both online
and in physical stores—the key challenge for retailers is converting these one-
time buyers into repeat customers. Many consumers who engage in seasonal
shopping are price-sensitive and may not return once discounts are no longer
available. To counteract this, businesses often implement loyalty programs,
personalized promotions, and follow-up marketing campaigns to maintain
engagement with newly acquired customers. Analyzing customer retention rates
post-discount periods can help determine whether discounts effectively build
long-term relationships or if they merely attract temporary, deal-seeking
shoppers who migrate to competitors when new discounts emerge.
Understanding this dynamic is vital for businesses striving to achieve
sustainable growth while balancing promotional costs with customer lifetime
value. Additionally, as the retail landscape evolves with digital advancements,
e-commerce platforms, and data-driven marketing techniques, the role of
seasonal discounts in shaping customer expectations and shopping habits will

4
continue to evolve. This study will provide valuable recommendations on how
businesses can integrate discount strategies with digital tools, customer
relationship management, and loyalty-building initiatives to create a well-
rounded approach that enhances both sales and customer retention. By carefully
analyzing both the benefits and challenges associated with seasonal discounts,
this study aims to contribute to the development of sustainable retail marketing
strategies that enhance customer retention and drive consistent revenue growth.
The study will also explore how different consumer demographics respond to
seasonal discounts, including variations based on age, income level, and
shopping habits, providing retailers with tailored strategies to effectively target
their key customer segments.

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 Introduction

Background of the topic

Seasonal promotions are special sales promotion strategies used by organisation for a short
term around popular holidays and festivals. It helps attract customers through gifts, discounts,
vouchers and samples. This aids in increasing the satisfaction of the customers towards the e-
commerce companies and motivates their buying intentions. It facilitates in enhancing the
customer loyalty towards the e-commerce brand (Sardana, Talwar and Gulati, 2018). In 2019,
the e-commerce sales in Ireland was €2.2 billion which was 12.9% rise compared to the
previous year. There is tough competition between the e-commerce companies with several
international retailers and local retailers making their presence in the e-commerce market
(Kennedy, 2018). In order to beat the market competition and attract more customers to the
online store, the e-commerce companies in Ireland offer attractive seasonal promotions
throughout the year. This is instrumental in gaining the satisfaction of the customers to the e-
commerce brand. Seasonal promotions are that which are being used by firms during March
Madness, World Cup, Super Bowl, Christmas, Mother’s Day and Black Friday. Firms
develop a promotional calendar that aids the firm to increase their sales (Fuggetta, 2012). E-
commerce in the industry is found to run promotional activities during Halloween,
Thanksgiving and many more. Promotions could be planned for an entire year for these
seasons since they are recurring every year during the same month. This helps in influencing
the satisfaction of customers (Nah and Siau, 2019). Thus, it could be seen that e-commerce
firms influence customers’ satisfaction through seasonal promotions. Average e-commerce
industry growth in Ireland during the year 2014 to 2019 was 9.1%. The ecommerce industry
is found to sell numerous products via online. Upward trend towards online shopping

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continues and the strong growth is being attributed to increasing mobile connections and 10
fixed broadband. Number of business operating in the industry is 9,759 and the industry
employs 18,772 and market size is €2 billion. Amazon holds the largest market share in the e-
commerce sector of Ireland (IBIS World, 2019). Revenue is the e-commerce sector is $3,701
million USD in the year 2020. By the year 2024 the annual growth rate is expected to reach
US $4,283 million by the year 2024. Fashion is the largest segment that is being sold through
online platforms. 68.0% is the user penetration in the year 2020. By the year 2024 it is
expected to reach 77.5%. US $ 915.23 is the average revenue per user in Ireland’s e-
commerce sector (Statista, 2020). Thus, it could be seen that the industry in Ireland has been
forecasted to grow in the future. The industry contributes to the economy through
employment and revenue generation. This industry is found to play a vital role in the
economy of Ireland. Thus, this e-commerce industry has been used as the case study in the
research. Problem statement Seasonal fluctuations have an impact on the sales of an
organisation, the demand among customers for various products vary due to seasons. Right
from toys to goods every product faces sales fluctuations during seasons (Markowitz, 2017).
E-commerce industry in Ireland is that which sells almost all products online. Hence, the
seasonal fluctuations would deeply impact the sales of ecommerce companies. Hence, as
identified from the background section, seasonal promotions could be used by the firms. As
identified from the research of Sardana, Talwar and Gulati (2018), customer satisfaction is
improved due to seasonal promotions. Whether the e-commerce firms in Ireland improve
their customer satisfaction through seasonal promotions in unknown hence, this research has
been carried out. Current relevance of the topic By 2024, the e-commerce sales in Ireland are
expected to touch €3.8 billion which is double to €1.05 billion that was registered in 2010 by
posting a 11.2% CAGR. This has shown the high 11 adoption of the online shopping by the
customers in Ireland (Taylor, 2019). Considering the high revenue potential available in the
e-commerce sector of Ireland for the local and international ecommerce companies operating
in Ireland, the e-commerce companies are focusing on various seasonal promotional
strategies in order to boost their sales and increase the market share while enhancing the
customer satisfaction levels. This helps in greater profitability for the e-commerce
companies. Research gaps to be addressed It was identified that there are several researches
conducted to examine the impact of seasonal promotional on customer satisfaction in the e-
commerce sector. Nevertheless, they were focused on different sectors or other countries.
However, there was no research that was undertaken in the context of Ireland. Hence, this
research shall address this gap.

7
Definition of Seasonal Discounts Seasonal discounts refer to temporary price reductions or
special promotions offered by retailers during specific periods of the year, typically aligned
with major shopping events, holidays, or end-of-season clearance sales. These discounts are
designed to attract consumers by creating urgency and encouraging them to make purchases
within a limited timeframe. Seasonal discounts serve multiple purposes for businesses,
including boosting sales, clearing out inventory, and attracting new customers who might not
have otherwise engaged with the brand. The concept of seasonal discounts is rooted in
consumer psychology, as time-sensitive deals tend to trigger impulse buying and create a
perception of exclusivity and savings. Seasonal discounts also contribute to the competitive
landscape of the retail industry, with businesses striving to offer the most appealing deals to
capture market share and maximize profitability. The introduction of seasonal discounts has
become an essential tool in the marketing strategies of retail businesses worldwide. Retailers
leverage these discounts to generate significant revenue within a short time, making them an
integral part of annual business planning. For instance, businesses prepare for seasonal
discount periods by increasing inventory, launching aggressive marketing campaigns, and
enhancing customer service to accommodate high demand. The success of these discounts
depends on consumer expectations, competitive pricing, and the retailer's ability to deliver
value without compromising profitability. Over time, consumers have come to expect
discounts during particular seasons, influencing their shopping habits and purchase decisions.
Furthermore, the effectiveness of seasonal discounts varies depending on the industry,
product category, and consumer demographics. While some businesses experience a
significant boost in revenue, others may struggle with profit margins due to excessive
markdowns. Retailers must strike a balance between attracting customers and maintaining a
sustainable pricing model to ensure long-term business viability. This research aims to
analyze the broader impact of seasonal discounts on retail sales performance and customer
retention, providing insights into their effectiveness in driving business growth. Explanation
of Seasonal Discounts as a Pricing Strategy As a pricing strategy, seasonal discounts are
carefully planned and executed to align with consumer demand and shopping habits.
Retailers use these discounts to create excitement and anticipation among shoppers, often
8
launching promotional campaigns well in advance of the actual sales period. Seasonal
discounts can take various forms, including percentage-based price reductions, buy-one-get-
one-free offers, bundled discounts, cashback incentives, and exclusive membership deals.
Businesses strategically set discount levels to strike a balance between attracting customers
and maintaining profitability. For instance, deep discounts may drive significant foot traffic
and online sales, but they also pose the risk of reducing profit margins if not managed
correctly. Additionally, retailers leverage data analytics and market research to determine the
optimal discount rates and timing, ensuring that their pricing strategy maximizes sales while
sustaining brand value. The success of seasonal discount pricing largely depends on
consumer behavior patterns, brand positioning, and the effectiveness of marketing efforts in
generating hype around the promotions. The implementation of seasonal discounts requires
careful consideration of multiple factors, including production costs, competitor pricing, and
customer expectations. Retailers analyze past sales trends, economic conditions, and
consumer sentiment before deciding on discount percentages and promotional activities.
Many businesses adopt a dynamic pricing approach, where discounts are adjusted based on
demand fluctuations and inventory levels. This strategy helps retailers optimize revenue
while ensuring that customers perceive the discounts as valuable and worthwhile.
Additionally, businesses utilize omnichannel strategies, combining online and in-store
promotions to enhance customer convenience and maximize sales opportunities. Despite the
advantages of seasonal discounts, retailers face challenges such as price sensitivity, consumer
fatigue, and the potential erosion of brand value. Excessive discounting can lead to customers
expecting lower prices year-round, reducing the effectiveness of future promotions.
Therefore, businesses must incorporate strategic pricing models, including limited-time
offers, tiered discounts, and loyalty-based incentives, to maintain profitability while attracting
seasonal shoppers. This research examines how businesses can leverage seasonal discounts
effectively without compromising long-term financial stability. Examples of Major Seasonal
Discount Events (e.g., Black Friday, Cyber Monday, Holiday Sales, End-of-Season
Clearance) Several major seasonal discount events have gained widespread popularity and
significantly impact the retail industry. One of the most well-known examples is Black
Friday, which takes place the day after Thanksgiving in the United States and marks the
beginning of the holiday shopping season. Retailers offer massive discounts on various
products, drawing large crowds to both physical stores and online platforms. Cyber Monday
follows Black Friday and focuses primarily on online retail, encouraging digital shopping
with exclusive e-commerce deals. Holiday sales, including Christmas, New Year, and
Valentine's Day promotions, also play a crucial role in driving sales, as consumers seek gifts
and seasonal products. Additionally, back-to-school sales target parents and students
preparing for the academic year, offering discounts on school supplies, clothing, and
electronics. End-of-season clearance sales are another common example, where retailers
reduce prices to clear out inventory and make space for new collections. These seasonal
discount events are not limited to specific countries but have become global phenomena,
influencing shopping behavior and revenue generation across various retail sectors. These
discount events have significantly reshaped consumer purchasing patterns, with many
shoppers delaying major purchases to take advantage of these seasonal promotions.

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Businesses also invest heavily in advertising campaigns, leveraging digital marketing, social
media, and influencer partnerships to promote their offers. The rise of e-commerce platforms
has further amplified the impact of these seasonal discounts, allowing consumers worldwide
to participate in major sales events. Retailers optimize their supply chain management,
inventory forecasting, and customer service strategies to handle the surge in demand during
these discount periods. However, while these events boost short-term sales, they may not
always guarantee long-term customer loyalty. Some consumers engage in transactional
shopping behavior, purchasing products only during discount seasons without forming strong
brand attachments. This raises an important question about the sustainability of seasonal
discounts as a long-term business strategy. This research explores whether businesses can
convert seasonal discount shoppers into repeat customers and examines the broader
implications of these discount events on the retail landscape.

10
Explanation of Seasonal Discounts as a Pricing Strategy As a pricing strategy, seasonal
discounts are carefully planned and executed to align with consumer demand and shopping
habits. Retailers use these discounts to create excitement and anticipation among shoppers,
often launching promotional campaigns well in advance of the actual sales period. Seasonal
discounts can take various forms, including percentage-based price reductions, buy-one-get-
one-free offers, bundled discounts, cashback incentives, and exclusive membership deals.
Businesses strategically set discount levels to strike a balance between attracting customers
and maintaining profitability. For instance, deep discounts may drive significant foot traffic
and online sales, but they also pose the risk of reducing profit margins if not managed
correctly. Additionally, retailers leverage data analytics and market research to determine the
optimal discount rates and timing, ensuring that their pricing strategy maximizes sales while
sustaining brand value. The success of seasonal discount pricing largely depends on
consumer behavior patterns, brand positioning, and the effectiveness of marketing efforts in
generating hype around the promotions. The implementation of seasonal discounts requires
careful consideration of multiple factors, including production costs, competitor pricing, and
customer expectations. Retailers analyze past sales trends, economic conditions, and
consumer sentiment before deciding on discount percentages and promotional activities.
Many businesses adopt a dynamic pricing approach, where discounts are adjusted based on
demand fluctuations and inventory levels. This strategy helps retailers optimize revenue
while ensuring that customers perceive the discounts as valuable and worthwhile.
Additionally, businesses utilize omnichannel strategies, combining online and in-store
promotions to enhance customer convenience and maximize sales opportunities. Despite the
advantages of seasonal discounts, retailers face challenges such as price sensitivity, consumer
fatigue, and the potential erosion of brand value. Excessive discounting can lead to customers
expecting lower prices year-round, reducing the effectiveness of future promotions.

11
Therefore, businesses must incorporate strategic pricing models, including limited-time
offers, tiered discounts, and loyalty-based incentives, to maintain profitability while attracting
seasonal shoppers. This research examines how businesses can leverage seasonal discounts
effectively without compromising long-term financial stability. Examples of Major Seasonal
Discount Events (e.g., Black Friday, Cyber Monday, Holiday Sales, End-of-Season
Clearance) Seasonal discount events are some of the most anticipated shopping periods
worldwide, drawing in millions of consumers looking for substantial price reductions. Black
Friday, one of the most prominent seasonal discount events, occurs the day after
Thanksgiving and marks the beginning of the holiday shopping season. Retailers across the
globe slash prices on various products, leading to a significant surge in sales both in physical
stores and online. Cyber Monday, which follows Black Friday, is a digitally focused
shopping event where online retailers offer deep discounts on electronics, fashion, and home
essentials. These two events alone contribute to a significant portion of annual retail revenue,
as consumers take advantage of limited-time offers to purchase gifts, gadgets, and household
items at reduced prices. Holiday sales, including Christmas, New Year, and Valentine's Day
promotions, also play a crucial role in driving seasonal discount sales. Many consumers wait
until these holiday periods to make purchases, knowing that retailers will offer discounts to
attract customers. Christmas sales, in particular, are a key driver of revenue for retailers, as
shoppers look for discounted gifts and festive essentials. Similarly, Valentine's Day sales
promote discounted gifts, flowers, and chocolates to encourage consumer spending. Another
significant seasonal discount event is the back-to-school sale, which targets students and
parents looking for school supplies, apparel, and electronics at lower prices. These seasonal
events provide businesses with an opportunity to boost revenue while giving consumers
access to essential products at discounted rates. End-of-season clearance sales are another
form of seasonal discounting where retailers sell off surplus inventory at reduced prices to
make room for new collections. These sales are common in the fashion industry, where
winter and summer collections go on clearance to prepare for the upcoming season’s trends.
Many consumers anticipate these clearance sales to get quality products at affordable prices.
The impact of these seasonal discount events on consumer behavior and business profitability
is substantial, highlighting the importance of timing and discounting strategies in retail
success. Differences Between Seasonal Discounts and Regular Promotional Offers Seasonal
discounts and regular promotional offers differ in terms of purpose, duration, and consumer
impact. Seasonal discounts occur during specific times of the year and are often tied to major
shopping events such as Black Friday, Cyber Monday, and holiday sales. These discounts
create urgency among consumers, encouraging them to take advantage of limited-time deals.
In contrast, regular promotional offers are used year-round to maintain customer interest and
drive continuous sales. Regular promotions include loyalty discounts, limited-time coupons,
and bulk purchase deals, which are designed to retain existing customers and attract new ones
regardless of seasonal events. The magnitude of seasonal discounts is often greater than that
of regular promotions. Seasonal sales tend to feature deeper price cuts and larger advertising
campaigns to generate excitement among shoppers. Regular promotions, on the other hand,
are typically smaller in scale and focused on sustaining customer engagement. While
seasonal discounts attract a surge of short-term shoppers, regular promotions are geared

12
towards fostering long-term customer loyalty. Understanding the differences between these
two discounting strategies is crucial for retailers aiming to balance immediate sales boosts
with sustainable business growth. Both seasonal discounts and regular promotions play
important roles in retail marketing. While seasonal discounts drive high sales volume during
peak shopping periods, regular promotions ensure steady revenue streams throughout the
year. Retailers must effectively integrate both strategies to maximize profitability while
maintaining customer satisfaction. This research examines how businesses can optimize the
use of seasonal discounts and regular promotions to enhance overall retail performance.

Significance of Studying Their Impact on Sales and Customer Retention

Seasonal discounts play a fundamental role in shaping consumer behavior and influencing
retail business performance. Studying their impact on sales is essential because these discount
periods significantly contribute to a company’s annual revenue. Retailers strategically
implement seasonal discounts during peak shopping times such as Black Friday, Cyber
Monday, Christmas, and back-to-school sales to attract a surge of customers, boost sales
volume, and optimize inventory turnover. By analyzing sales trends during these discount
periods, businesses can determine how much revenue is generated through markdowns
compared to regular pricing strategies. Understanding these dynamics enables companies to
fine-tune their pricing models and promotional tactics to maximize profits while minimizing
potential losses. Additionally, this research allows businesses to assess whether seasonal
discounts merely shift demand from one period to another or truly increase overall sales. If
discounts encourage bulk purchases but lead to slower sales in the subsequent months,
businesses may need to reconsider their approach to avoid potential financial instability.

Beyond sales performance, another crucial aspect of studying seasonal discounts is their
impact on customer retention and loyalty. While deep discounts attract large numbers of
shoppers, the challenge for businesses is to convert these bargain-seekers into long-term,
repeat customers. Researching customer retention patterns after seasonal sales helps retailers
determine whether discount-driven purchases translate into sustained brand loyalty or if
shoppers return only when similar promotions are available. For example, a business may
notice a spike in first-time buyers during a seasonal sale but struggle to retain them beyond
that period. Companies must therefore analyze consumer purchasing behavior, brand
engagement, and repeat purchase rates after promotional periods to evaluate the effectiveness
of their discount strategies in building lasting relationships with customers. By studying these
factors, businesses can refine their post-sale engagement strategies, such as loyalty programs,
personalized marketing campaigns, and exclusive membership discounts, to encourage repeat
business and prevent customers from turning to competitors for future purchases.

Furthermore, understanding the broader implications of seasonal discounts on customer

psychology and market positioning is vital for sustainable business growth. Discount
strategies have a direct impact on brand perception—while limited-time offers create urgency
and excitement, excessive discounting can devalue a brand and make customers hesitant to
pay full price in the future. This study provides insights into how businesses can balance

13
aggressive discounting with maintaining perceived product value. Additionally, seasonal
discounting affects various stakeholders, including suppliers, logistics providers, and
employees, requiring careful planning and execution. Retailers must ensure that discount-
driven sales spikes do not disrupt supply chain efficiency or lead to stock shortages that
negatively affect customer satisfaction. By conducting comprehensive research on these
aspects, businesses can develop data-driven strategies that not only drive immediate sales but
also enhance long-term customer retention, improve brand positioning, and maintain financial
stability in an increasingly competitive retail landscape.

Problem statement

Seasonal fluctuations have an impact on the sales of an organisation, the demand among
customers for various products vary due to seasons. Right from toys to goods every product
faces sales fluctuations during seasons (Markowitz, 2017). E-commerce industry in Ireland is
that which sells almost all products online. Hence, the seasonal fluctuations would deeply
impact the sales of ecommerce companies. Hence, as identified from the background section,
seasonal promotions could be used by the firms. As identified from the research of Sardana,
Talwar and Gulati (2018), customer satisfaction is improved due to seasonal promotions.
Whether the e-commerce firms in Ireland improve their customer satisfaction through
seasonal promotions in unknown hence, this research has been carried out.

Current relevance of the topic By 2024, the e-commerce sales in Ireland are expected to
touch €3.8 billion which is double to €1.05 billion that was registered in 2010 by posting a
11.2% CAGR. This has shown the high 11 adoption of the online shopping by the customers
in Ireland (Taylor, 2019). Considering the high revenue potential available in the e-commerce
sector of Ireland for the local and international eCommerce companies operating in Ireland,
the e-commerce companies are focusing on various seasonal promotional strategies in order
to boost their sales and increase the market share while enhancing the customer satisfaction
levels. This helps in greater profitability for the e-commerce companies.

Research gaps to be addressed

It was identified that there are several researches conducted to examine the impact of
seasonal promotional on customer satisfaction in the e-commerce sector. Nevertheless, they
were focused on different sectors or other countries. However, there was no research that was
undertaken in the context of Ireland. Hence, this research shall address this gap.

Research question Main research question ● What is the impact of seasonal promotions used
by the e-commerce organisations on customer satisfaction? Sub research questions

● What are the various strategies of seasonal promotions used by e-commerce organisations?
● How to effectively improve the seasonal promotional strategies in order to improve the
customer satisfaction in e-commerce sector?

Research objectives

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● To determine the importance of seasonal promotions in e-commerce industry

● To identify the various seasonal promotional strategies used by the e-commerce

organisations

● To evaluate the impact of seasonal promotions on customer satisfaction in the e-commerce

industry

● To recommend way to effectively utilise seasonal promotional strategies to improve

customer satisfaction in e-commerce sector

Hypothesis

The following ten hypotheses were developed using the seasonal promotional factors covered
in the literature review.

H1: There is a significant relation between attractive flash sales promotions and Customer
satisfaction

H2: There is a significant relation between free shipping offer and Customer satisfaction

H3: There is a significant relation between return policy and Customer satisfaction

H4: There is a significant relation between cash back offers and Customer satisfaction

H5: There is a significant relation between free sample offers and Customer satisfaction

H6: There is a significant relation between discount coupon offers and Customer satisfaction

H7: There is a significant relation between gift card offers and Customer satisfaction

H8: There is a strong correlation between limited period discounts and Customer satisfaction

H9: There is a strong correlation between seasonal contest and Customer satisfaction

H10: There is a strong correlation between combo discount price offers and Customer
satisfaction

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Research rationale

The current research was undertaken in order to analyse the role of the seasonal promotional
strategies implemented by the various organisations in the e-commerce sector. It shall
identify how effective were the seasonal promotional strategies of the e-commerce in
enhancing the satisfaction of the customers in the e-commerce industry. This research will
offer key insights to the e-commerce companies in Ireland on the effectiveness of the
seasonal promotions adopted by them and the extent to which it will attract the customers to
their e-commerce website and boost the customer satisfaction levels. As I am an active e-
commerce customer, the insights that I obtain from this research will contribute to me
professionally with regard to developing seasonal promotional strategies that are effective to
enhance the satisfaction of the customers in the e-commerce industry in my future career.
This will help me gain the perspective of the customers in the e-commerce sector.

Research recipients

The present study will be beneficial for the e-commerce companies in Ireland and more
specifically, the management and the sales and marketing departments of the Irish e-
commerce companies that are responsible for the development and implementation of the
seasonal promotional strategies in their respective e-commerce companies. The study will
also be useful for researcher who has the intention of performing researches on seasonal
promotions and ecommerce sector of Ireland.

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Research scope and limitations Research scope

This research shall focus only on the seasonal promotional strategies for the e-commerce
companies in Ireland and its impact on the customer satisfaction levels. Research limitations
On account of the limitations in time and resources to perform this research, the researcher
employed a small sample size of 50. This also led to the researcher adopting the survey
technique to collect the research data which is cost effective and faster. The findings of this
research will only be applicable to the e-commerce companies in Ireland. The research would
not be suitable for other industries and would be only applicable for e-commerce sector. The
research objectives and aim is broad since the entire e-commerce industry had been
considered by the researcher. 1.8 Major contributions of the study The research focused on
testing the research hypothesis that analysed the relationship between the seasonal
promotions and satisfaction among the customers in the e-commerce sector of Ireland from
the basis of the research results. This study shall offer empirical evidence on the effectiveness
of the different seasonal promotional strategies that are adopted by the e-commerce
companies in Ireland towards increasing the customer satisfaction levels. The study would
render information for the e-commerce firms operating in Ireland, they would be able to
make use of the study for improving their seasonal promotions.

Significance of Studying Their Impact on Sales and Customer Retention

Seasonal discounts have become an integral part of the retail industry, shaping consumer
purchasing behavior and influencing overall sales performance. Businesses rely on these
strategic price reductions to attract customers, clear out excess inventory, and maximize
revenue during peak shopping periods. Understanding the significance of studying the impact
of seasonal discounts is crucial for retailers aiming to optimize their promotional strategies.
By analyzing how seasonal discounts affect both immediate sales figures and long-term
customer relationships, businesses can make data-driven decisions that enhance profitability

17
and market competitiveness. The retail sector is highly dynamic, and companies that fail to
assess the effects of their discounting strategies may risk diminishing their brand value or
fostering customer expectations that could harm future sales at regular prices. Hence,
studying seasonal discounts allows retailers to strike a balance between offering attractive
deals and maintaining sustainable profit margins.

Additionally, seasonal discounting strategies have evolved beyond simple price cuts to
include loyalty programs, exclusive deals, and bundled offers that create a more personalized
shopping experience. With the rise of e-commerce and digital marketing, businesses now
have access to vast amounts of consumer data, enabling them to analyze shopping trends and
tailor promotions accordingly. Researching the impact of seasonal discounts helps retailers
understand which types of promotions resonate most with customers and which strategies
drive the highest sales conversions. This knowledge is essential for businesses looking to
implement effective discount campaigns that not only generate immediate sales but also
cultivate long-term customer relationships. By studying past trends, businesses can anticipate
consumer behavior and craft future promotions that maximize revenue potential.

Moreover, the long-term success of any retail business depends on its ability to retain
customers, and seasonal discounts play a key role in this aspect. While discounts may initially
attract shoppers, the challenge lies in converting them into repeat buyers who continue to
engage with the brand even after the promotional period ends. A deep analysis of customer
retention rates following seasonal discount events helps retailers determine whether their
pricing strategies are fostering customer loyalty or simply attracting one-time bargain
hunters. Without this research, businesses risk devaluing their products by over-relying on
discounts, potentially harming their brand image in the long run. Therefore, studying the
impact of seasonal discounts on customer retention is essential for developing marketing
strategies that drive consistent and sustainable growth.

18
2. It Is Important to Analyze Whether Seasonal Discounts Lead to Long-Term Sales
Growth or Just Short-Term Revenue Spikes

One of the primary reasons businesses implement seasonal discounts is to boost sales during
peak shopping periods, but the question remains: do these promotions contribute to long-term
growth or merely create short-term revenue spikes? Understanding the long-term implications
of discount-driven sales is essential for retailers seeking sustainable business models. During
events such as Black Friday, Christmas, or end-of-season sales, retailers experience a surge in
transactions, often setting record-breaking sales figures. However, this increase in sales does
not necessarily indicate long-term growth, as many consumers make bulk purchases or shift
their spending habits to take advantage of temporary price reductions. Retailers must evaluate
whether their seasonal discounts lead to increased customer lifetime value or if they only
serve as a temporary revenue booster.

Furthermore, an over-reliance on seasonal discounting can result in diminishing returns if

consumers begin to associate a brand with frequent markdowns rather than quality and
exclusivity. If customers anticipate that discounts will be available regularly, they may
postpone purchases until the next sale, reducing overall revenue consistency. This effect is
especially evident in industries such as fashion and electronics, where customers are
accustomed to waiting for end-of-season clearances or holiday discounts before making
purchases. Retailers must analyze sales data over multiple seasons to determine whether their
discounting strategies lead to sustainable growth or if they are simply shifting demand from
one period to another. Businesses that fail to strike a balance between discount-driven sales
and full-price sales may find themselves trapped in a cycle of continuous markdowns,
ultimately eroding their profit margins.

To achieve long-term sales growth, retailers must implement strategies that encourage repeat
business beyond the seasonal discount periods. This can include offering exclusive rewards

19
programs, personalized promotions, and superior customer service that enhance brand
loyalty. By studying consumer purchasing patterns before, during, and after seasonal discount
events, businesses can identify which customers are likely to remain engaged with the brand
versus those who are solely motivated by discounts. The insights gained from such analysis
help businesses develop sustainable pricing strategies that drive both immediate revenue and
long-term customer retention. Without this research, retailers risk sacrificing profitability for
short-term sales spikes, ultimately undermining their market position and financial stability.

3. How Discount-Driven Sales Affect Customer Loyalty and Repeat Purchase Behavior

Customer loyalty is a critical factor in a retailer’s long-term success, and seasonal discounts
can either strengthen or weaken consumer commitment to a brand. Discounts create an
opportunity to introduce new customers to a brand’s products, but retailers must ensure that
these customers remain engaged beyond the promotional period. Many consumers are drawn
to discounts due to the perception of value and savings, but if the retailer fails to provide a
satisfying shopping experience, those customers may not return once prices return to normal.
Understanding how discounts impact repeat purchase behavior is vital in determining
whether seasonal promotions contribute to long-term brand loyalty or merely attract price-
sensitive shoppers who switch brands based on discounts alone.

Another key factor to consider is the role of customer expectations in loyalty-building. If

retailers rely too heavily on seasonal discounts, they may condition customers to expect
discounts regularly, making it difficult to sell products at full price. This can be particularly
detrimental to premium brands that seek to maintain a high-value perception. Conversely,
when seasonal discounts are paired with personalized rewards, exclusive member benefits,
and excellent customer service, businesses can enhance customer relationships and encourage
repeat purchases. Retailers that implement follow-up engagement strategies, such as post-sale
email campaigns, personalized offers, or VIP programs, are more likely to retain customers
acquired through seasonal discounts.

Moreover, customer retention strategies must focus on providing value beyond discounts.
Businesses should analyze customer purchasing behavior and preferences to develop tailored
marketing campaigns that keep customers engaged year-round. Subscription-based models,
exclusive previews of new collections, and personalized product recommendations are all
ways to nurture long-term customer relationships. By studying how seasonal discounts
influence customer loyalty, businesses can refine their marketing strategies and ensure that
discount-driven sales translate into sustainable growth rather than one-time transactions.

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4. The Broader Implications of Seasonal Discounts on Market Positioning, Brand Value,
and Supply Chain Management

Beyond direct sales and customer retention, seasonal discounts have significant implications
for a retailer’s market positioning, brand perception, and operational efficiency. A company’s
pricing strategy plays a crucial role in defining its brand identity, and frequent discounts can
either enhance or weaken that perception. Luxury and premium brands, for instance, must
carefully manage their discounting strategies to avoid diluting their exclusivity. On the other
hand, mass-market retailers often leverage discounts as a competitive advantage, positioning
themselves as value-driven brands. Understanding how seasonal discounts impact brand
value helps businesses maintain a consistent and compelling market presence.

From an operational standpoint, seasonal discounts require extensive planning in terms of

inventory management and supply chain efficiency. Retailers must ensure that they have
adequate stock levels to meet increased demand while avoiding overstocking, which can lead
to financial losses if products are not sold. Additionally, businesses must coordinate logistics,
staffing, and marketing efforts to ensure a seamless shopping experience during peak sales
periods. Analyzing supply chain performance during seasonal discount events helps retailers
identify areas for improvement, such as optimizing distribution channels, reducing lead times,
and enhancing fulfillment processes.

Furthermore, seasonal discounts influence overall industry trends, shaping consumer

expectations and competitive dynamics. If major retailers aggressively promote seasonal
discounts, smaller businesses may feel pressured to follow suit, even if it is not financially
viable for them. This can lead to unsustainable pricing wars, negatively impacting
profitability across the industry. By studying the broader implications of seasonal discounts,
businesses can develop strategic pricing and promotional models that align with their long-
term objectives, ensuring both profitability and customer satisfaction.

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22
1. Role of Discounts in the Retail Industry

Discounts play a pivotal role in the retail industry by influencing consumer behavior, driving
sales, and enhancing customer engagement. Retailers use discounts as an effective pricing
strategy to attract customers, boost short-term revenue, and manage inventory efficiently. By
offering seasonal discounts, businesses create urgency among consumers, encouraging them
to make purchases before the promotion ends. This urgency is often reinforced through
limited-time offers, exclusive deals for loyalty program members, or flash sales, all of which
create excitement around the shopping experience. Retailers leverage psychological pricing
tactics such as percentage reductions, buy-one-get-one-free deals, and tiered discounts to
make consumers perceive greater value in their purchases. Additionally, discounts can act as
a gateway for acquiring new customers who might not have otherwise engaged with the
brand. These first-time buyers, if provided with excellent service and product quality, may
turn into loyal customers, contributing to long-term business success.

Beyond attracting customers, discounts help retailers stimulate demand during slow business
periods. For instance, after-holiday seasons and end-of-season transitions often see a decline
in consumer spending, which can be countered through well-planned discount campaigns.
Retailers strategically time their discounts to align with major shopping events such as Black
Friday, Cyber Monday, and back-to-school sales to maximize foot traffic and online
purchases. These seasonal discounts are not only about reducing prices but also about
optimizing inventory turnover. Retailers often introduce discounts on older stock to clear
space for new collections, ensuring that their product lines remain fresh and relevant. Without
such strategies, businesses risk accumulating unsold inventory, leading to increased storage
costs and potential financial losses. By effectively using seasonal discounts, retailers can
maintain a steady flow of sales throughout the year while keeping their product offerings
dynamic and attractive to consumers.

However, the effectiveness of discounts largely depends on how they are structured and
promoted. Discounts must be carefully planned to avoid devaluing a brand’s perception in the
long run. If consumers start associating a retailer with constant markdowns, they may delay
purchases, anticipating further reductions in the future. This can reduce the overall
profitability of a business, making it crucial for retailers to strike a balance between offering
discounts and maintaining perceived product value. Some brands, particularly in the luxury
and high-end retail sector, limit their discounting strategies to protect their brand exclusivity
and maintain high profit margins. In contrast, budget retailers frequently use discounts to
reinforce their positioning as affordable shopping destinations. The role of discounts in the
retail industry, therefore, extends beyond sales generation—it also shapes consumer
perceptions, influences brand loyalty, and determines long-term financial sustainability.

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2. How Retailers Use Seasonal Discounts as a Marketing Tool to Drive
Sales and Attract Customers

Seasonal discounts are one of the most powerful marketing tools that retailers use to attract
customers and drive sales. These promotions are strategically designed to coincide with peak
shopping periods, ensuring that businesses capitalize on heightened consumer spending.
Retailers create targeted marketing campaigns using digital advertising, email promotions,
social media engagement, and influencer partnerships to generate excitement around their
discount events. Advertisements showcasing limited-time deals and exclusive discounts often
create a sense of urgency, encouraging shoppers to make impulsive purchases before the sale
ends. By leveraging marketing techniques such as personalized offers, countdown timers, and
exclusive pre-sale access for loyal customers, retailers enhance consumer engagement and
drive higher conversion rates. Seasonal discounts are also integrated into omnichannel
marketing strategies, allowing businesses to promote discounts across multiple platforms,
from physical stores to e-commerce websites and mobile apps.

Another crucial aspect of seasonal discounts as a marketing tool is their ability to increase
brand visibility and customer acquisition. Many consumers are more likely to try a new brand
or product if they perceive it as a good deal. For example, a shopper who might not usually
purchase from a particular brand may be drawn in by a holiday discount, providing
businesses with an opportunity to showcase the quality of their products and services. Once a
customer has made an initial purchase, businesses can implement retention strategies such as
follow-up email offers, personalized recommendations, and loyalty rewards to encourage
repeat purchases. Retailers also use seasonal discounts to upsell and cross-sell products,
offering bundled deals that increase the average order value. For instance, during Black
Friday sales, electronic retailers may bundle accessories with a discounted smartphone
purchase, thereby maximizing revenue per transaction.

However, while seasonal discounts are effective in driving short-term sales, businesses must
ensure that they do not erode long-term profitability. Over-reliance on discounts as a
marketing tool can lead to price-sensitive customers who only shop during promotional
periods, reducing full-price sales in the long run. To counter this, businesses often implement
tiered discounting strategies, where loyal customers receive exclusive early access to sales or
additional perks such as free shipping or bonus rewards points. This approach helps retailers
maintain profitability while fostering customer retention beyond seasonal sales events.
Moreover, successful seasonal discount campaigns are backed by data analytics, enabling
retailers to understand customer preferences, track shopping behavior, and optimize future
marketing strategies. When executed effectively, seasonal discounts serve as a powerful tool
to enhance brand awareness, acquire new customers, and drive sustained business growth.

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3. The Financial Impact of Seasonal Discounts on Businesses, Including
Revenue Generation and Inventory Management

The financial impact of seasonal discounts on businesses is a complex interplay between

revenue generation, profit margins, and inventory management. On one hand, seasonal
discounts can significantly boost sales volume, helping businesses achieve their revenue
targets within a short time. During high-traffic shopping periods such as Black Friday or
holiday sales, retailers often experience record-breaking revenue due to a surge in consumer
demand. However, while discounts increase total sales, they also reduce profit margins per
unit sold. Retailers must carefully assess whether the increase in sales volume compensates
for the reduction in per-unit profitability. Additionally, discount-driven sales contribute to
cash flow optimization, enabling businesses to reinvest earnings into new inventory,
marketing initiatives, and expansion efforts.

Inventory management is another critical factor that influences the financial impact of
seasonal discounts. Businesses use discounts strategically to clear out excess stock,
particularly in industries like fashion, electronics, and consumer goods, where seasonal trends
play a significant role. Without timely discounts, retailers risk accumulating obsolete
inventory, which can lead to increased storage costs and potential financial losses. End-of-
season sales, for example, allow businesses to transition smoothly between product cycles,
ensuring that outdated stock does not linger on shelves. In the e-commerce sector, efficient
inventory management during discount events is crucial to avoid stockouts or overstocking,
both of which can negatively impact revenue. Advanced inventory tracking systems, demand
forecasting, and supply chain coordination play a vital role in ensuring that seasonal
discounts translate into financial gains rather than operational inefficiencies.

However, the financial risks associated with seasonal discounts cannot be ignored. If
businesses miscalculate demand or offer excessively high discounts, they may struggle to
maintain profitability. Some retailers have faced challenges where aggressive discounting
strategies led to reduced consumer willingness to purchase at full price, ultimately damaging
long-term brand value. To mitigate this risk, businesses implement pricing strategies such as
staggered discounts, members-only promotions, and strategic markdown schedules to
optimize financial outcomes. Additionally, loyalty programs that reward repeat purchases
after a seasonal sale help businesses extend the financial benefits beyond the immediate
discount period. Ultimately, while seasonal discounts serve as a strong driver for revenue
generation and inventory optimization, they require careful financial planning to ensure long-
term business stability and profitability.

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4. The Competitive Nature of Discounting in the Retail Industry and Its
Influence on Pricing Strategies

Discounting is a highly competitive practice in the retail industry, with businesses constantly
adjusting their pricing strategies to stay ahead of rivals. In an era of price transparency, where
consumers can compare deals across multiple retailers with just a few clicks, businesses must
carefully strategize their discount offerings to remain competitive. Large retailers such as
Amazon, Walmart, and Target often set industry benchmarks for seasonal discounts, forcing
smaller businesses to follow suit or risk losing market share. This competitive environment
creates price wars, where businesses attempt to outdo each other by offering steeper
discounts, additional perks, or extended sales durations. While such strategies benefit
consumers, they can significantly impact retailers' profit margins, making it crucial for
businesses to find a sustainable approach to discounting.

To maintain a competitive edge without jeopardizing profitability, many retailers employ

dynamic pricing strategies that adjust prices based on demand, competitor pricing, and
customer behavior. Advanced data analytics and artificial intelligence (AI)-driven pricing
models enable retailers to set optimal discount levels while protecting profit margins.

26
Additionally, exclusive discount programs, such as member-only sales or personalized offers
based on purchase history, allow retailers to differentiate themselves in a highly competitive
landscape. By adopting these strategies, businesses can use seasonal discounts effectively
while preserving their long-term financial stability.

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1. Overview of Different Types of Seasonal Discounts, Including Holiday
Sales, End-of-Season Clearances, and Event-Based Promotions

Seasonal discounts are a crucial element in the retail industry, helping businesses attract
customers and maximize sales during specific time periods. These discounts can be broadly
categorized into three main types: holiday sales, end-of-season clearances, and event-based
promotions. Holiday sales are among the most anticipated discount periods, occurring during
major festivities like Christmas, Thanksgiving, New Year's, and Halloween. Retailers offer
substantial discounts on a wide range of products to capitalize on increased consumer
spending during these celebrations. Black Friday and Cyber Monday are two of the most
prominent holiday sales events, where customers actively seek deep discounts on electronics,
clothing, and household goods. Similarly, retailers use festive periods such as Diwali in India
and Chinese New Year to launch significant promotional campaigns. These sales are highly
effective in generating revenue spikes, as customers are more inclined to spend during the
holiday season for gifts and personal shopping.

End-of-season clearances are another important type of seasonal discount, primarily used to
clear out old inventory and make room for new collections. In industries such as fashion,
electronics, and home decor, trends change rapidly, making it essential for retailers to cycle
through inventory efficiently. For instance, summer clearance sales occur at the end of warm
seasons, offering discounts on items like swimwear, summer apparel, and outdoor furniture.
Similarly, winter clearance sales help retailers offload coats, boots, and holiday-themed
products before the arrival of spring. These clearance events serve a dual purpose: they
prevent excessive inventory buildup and help businesses maintain cash flow by recovering
costs associated with unsold goods. Retailers often adopt a tiered discounting approach in
end-of-season sales, where initial discounts are moderate, but as the sale progresses,
markdowns become steeper to encourage final clearance.

Lastly, event-based promotions are seasonal discounts linked to specific shopping trends,
cultural events, or industry-related occasions. These can include back-to-school sales, where
retailers offer discounts on school supplies, clothing, and electronics in preparation for the
academic year. Other examples include sporting event promotions, where retailers provide
special discounts on merchandise during events like the FIFA World Cup or the Super Bowl.
Similarly, businesses use national holidays, anniversaries, and store openings as opportunities
to offer short-term, exclusive discounts. Event-based promotions are strategically designed to
capture consumer interest by aligning discounts with timely needs, ensuring that businesses
can drive traffic and boost sales during peak shopping periods. Overall, these three types of
seasonal discounts—holiday sales, end-of-season clearances, and event-based promotions—
play a vital role in shaping consumer purchasing behavior and maximizing retail profitability.

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2. Discussion on the Strategic Timing of Seasonal Discounts and Their Role
in Consumer Purchasing Behavior

The strategic timing of seasonal discounts is a key factor in determining their success, as it
directly influences consumer purchasing behavior. Retailers carefully plan the launch of
discounts to align with periods of heightened consumer demand, ensuring that they can attract
the maximum number of shoppers. Timing plays a critical role in the effectiveness of
seasonal discounts, as early or poorly planned discounts may not yield the desired results. For
instance, launching holiday discounts too soon can lead to consumer fatigue, while starting
them too late may result in missed sales opportunities. Businesses often analyze historical
sales data, market trends, and competitor strategies to determine the optimal timing for
discount rollouts. In some cases, retailers use pre-sale events to build anticipation and
encourage early shopping, ensuring a steady flow of revenue throughout the season.

Consumer purchasing behavior is heavily influenced by the perceived urgency and

exclusivity of seasonal discounts. Many shoppers wait for anticipated discount events such as
Black Friday or end-of-season sales to make high-value purchases, delaying their spending in
expectation of better deals. This behavior, known as "discount anticipation," impacts how
businesses structure their sales strategy. Retailers often introduce staggered discounts, where
initial markdowns attract early buyers, while deeper discounts are offered later to clear out
remaining inventory. Flash sales, time-limited promotions, and exclusive discounts for
loyalty members are also used to create a sense of urgency, encouraging consumers to act
quickly before the offer expires. Additionally, digital marketing strategies, including email
notifications, targeted advertisements, and countdown timers, play a crucial role in reminding
customers about upcoming sales and influencing their purchasing decisions.

Another critical aspect of timing seasonal discounts is avoiding over-discounting, which can
negatively affect consumer perception and long-term profitability. If businesses offer
frequent and aggressive discounts, customers may become accustomed to lower prices and
hesitate to purchase items at full price. This phenomenon, known as "discount
dependency," can reduce brand value and erode profit margins. To counter this, some
retailers adopt limited-time discounts, personalized offers, or bundle deals that provide
value without drastically reducing individual product prices. Additionally, businesses use
post-discount engagement strategies, such as offering discounts on future purchases or
enrolling customers in loyalty programs, to ensure repeat transactions beyond seasonal sales
events. Overall, the strategic timing of seasonal discounts is a delicate balance between
maximizing immediate sales and fostering sustainable consumer loyalty.

Objectives

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1. To Analyze the Effect of Seasonal Discounts on Sales Performance

 Seasonal discounts play a key role in increasing sales volume during peak shopping
periods.
 Businesses use discounts to attract price-sensitive customers and boost revenue within
a limited timeframe.
 Short-term sales spikes are common during seasonal promotions, but sustaining long-
term profitability remains a challenge.
 Inventory clearance is a major reason behind seasonal discounts, helping businesses
make space for new stock.
 Retailers must assess whether discounts contribute to overall revenue growth or
merely shift sales from non-discount periods.
 Some industries benefit more than others from seasonal discounts (e.g., apparel,
electronics, and consumer goods).
 The impact on small businesses vs. large retailers: How discounting strategies differ.

2. To Evaluate the Impact of Discounts on Customer Retention

 Discounts attract first-time buyers, but their impact on repeat purchases varies.
 Many consumers shop only during discount seasons, leading to inconsistent revenue
patterns.
 Strategic discounting can enhance customer retention if combined with loyalty
programs.
 Excessive discounting can devalue a brand, making it difficult to sell products at full
price.
 Businesses need to find a balance between offering discounts and maintaining brand
value.
 The role of personalized discounts in encouraging repeat purchases.
 Post-discount engagement strategies (e.g., email marketing, rewards programs, and
exclusive deals) can help retain customers.

3. To Explore Customer Behavior Before, During, and After Discount

Periods

 Many consumers delay purchases in anticipation of seasonal discounts.

 Flash sales and limited-time offers trigger impulse buying behavior.
 Digital vs. in-store shopping trends: How seasonal discounts influence customer
preferences.
 The impact of social media and influencer marketing on discount-driven shopping
habits.
 Consumers often compare prices across multiple platforms before purchasing.
 The role of online reviews, product recommendations, and social proof in discount-
related purchases.

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  Post-purchase behavior: How discounts affect customer satisfaction and long-term
loyalty.

4. To Provide Insights and Recommendations for Retailers

 Retailers must use data analytics to optimize their seasonal discount strategies.
 Tiered discounting approaches can help maintain profit margins while attracting
customers.
 Loyalty-based discounting can encourage repeat purchases and long-term brand
engagement.
 The importance of creating exclusive, time-sensitive offers that do not devalue
products.
 Cross-selling and bundling strategies to maximize the value of seasonal discounts.
 Businesses should monitor customer retention rates to assess the effectiveness of their
discount strategies.
 Implementing AI-driven pricing models to determine the best discount percentages
without harming revenue.

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 Literature Review

1. Overview of Pricing and Discount Strategies in Retail

Pricing strategies play a crucial role in the retail industry, influencing consumer purchase
decisions, competitive advantage, and overall profitability. Retailers adopt a variety of
pricing models to attract customers, increase sales volume, and ensure sustainable revenue.
Among these, seasonal discounts are one of the most impactful strategies, offering temporary
price reductions to stimulate consumer demand during specific periods. This section explores
different pricing and discount strategies used in retail, their advantages and challenges, and
their overall impact on customer behavior.

1.1 Common Pricing Strategies in Retail

Retailers implement various pricing strategies to balance profitability and customer appeal.
Some of the most widely used strategies include:

 Everyday Low Pricing (EDLP): This strategy involves maintaining consistently low
prices rather than offering temporary discounts. Large retailers like Walmart use this
approach to build consumer trust and encourage frequent purchases.
 High-Low Pricing: This model involves setting high base prices but offering periodic
discounts, often during seasonal sales. Luxury brands and department stores
frequently use this strategy to create excitement around promotions.
 Penetration Pricing: Retailers introduce new products at low initial prices to attract
customers, then gradually increase prices once a customer base is established. This
strategy is often used in highly competitive markets.
 Value-Based Pricing: Prices are set based on consumer perception of a product’s
value rather than cost. Premium brands use this method to justify higher prices based
on brand reputation, product quality, and exclusivity.
 Dynamic Pricing: Prices fluctuate based on demand, competitor pricing, and
customer behavior. Online retailers and travel booking sites like Amazon and Airbnb
use this approach to optimize revenue.

Each of these strategies affects how and when retailers implement seasonal discounts to
maximize sales without eroding brand value.

1.2 Types of Retail Discounts

Discounting is an essential component of retail pricing strategies, and seasonal discounts are
a subset of broader discounting methods. Common types of discounts include:

 Seasonal Discounts: Offered during major shopping seasons, such as Black Friday,
holiday sales, back-to-school promotions, and end-of-season clearances.

32
  Bulk Purchase Discounts: Encouraging customers to buy more by offering price
reductions on multiple purchases.
 Loyalty-Based Discounts: Providing exclusive deals to returning customers through
membership programs and reward points.
 Flash Sales: Limited-time promotions that create urgency and boost impulse
purchases.
 Bundle Pricing: Offering discounts on product bundles rather than individual items
to increase overall sales volume.

Retailers strategically combine these discounting methods with seasonal sales events to
maximize foot traffic and online conversions.

1.3 The Role of Seasonal Discounts in Retail

Seasonal discounts serve multiple purposes beyond simply increasing sales volume. Their
key roles in retail include:

 Attracting Customers: Retailers use discounts to draw in new customers who may
not otherwise shop with them. Once inside the store or on an e-commerce platform,
these customers are more likely to make additional purchases.
 Inventory Management: Seasonal discounts help clear out old stock to make room
for new collections. End-of-season sales are particularly useful for fashion retailers
looking to sell off last season’s styles before introducing new inventory.
 Revenue Optimization: While discounts reduce profit margins on individual items,
the increase in overall sales volume often compensates for this loss. Retailers
carefully analyze historical data to determine the best discount percentages for
maximizing revenue.
 Enhancing Brand Loyalty: Customers who feel they are getting a good deal are
more likely to return to the store. Loyalty programs that combine discounts with
reward points can further improve customer retention rates.

1.4 Challenges of Discount-Based Pricing Strategies

Despite their advantages, seasonal discounts and other pricing strategies present several
challenges for retailers, including:

 Consumer Discount Expectation: Shoppers may delay purchases, waiting for

discounts instead of buying products at regular prices. This can create fluctuations in
revenue throughout the year.
 Brand Devaluation: Frequent discounts can diminish a brand’s perceived value. If
customers associate a brand with constant sales, they may be unwilling to pay full
price.
 Profit Margin Reduction: While seasonal discounts drive revenue, they also cut into
profit margins. Retailers must carefully balance discount levels to avoid losses.

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  Stock Shortages and Overstock Issues: Poor inventory forecasting can lead to either
excess stock (leading to higher storage costs) or stock shortages (leading to lost sales
opportunities).

1.5 The Impact of Technology on Pricing Strategies

Technology has significantly influenced how retailers implement pricing and discount
strategies. Key advancements include:

 Data Analytics and AI: Retailers use big data to analyze customer purchasing
patterns, optimize pricing strategies, and personalize discounts. AI-driven dynamic
pricing adjusts prices in real time based on demand fluctuations.
 E-commerce and Digital Marketing: Online retailers leverage personalized
discounts, targeted promotions, and email marketing campaigns to enhance customer
engagement.
 Mobile and In-Store Integration: Many retailers now offer digital coupons, app-
based discounts, and in-store price-matching to provide seamless shopping
experiences.

By leveraging technology, retailers can enhance the effectiveness of seasonal discounts while
minimizing risks associated with over-discounting.

2. Psychological Effects of Discounts on Consumer Buying

Behavior
Seasonal discounts significantly influence consumer purchasing decisions by tapping into
various psychological triggers. Discounts create a sense of urgency, exclusivity, and
perceived value, encouraging customers to make impulsive or planned purchases based on
emotional and cognitive biases. This section explores the psychological mechanisms behind
consumer responses to discounts and how retailers leverage these effects to maximize sales
and customer retention.

2.1 The Role of Perceived Savings and Value

One of the primary psychological effects of discounts is the perception of savings, which
influences purchasing decisions:

 Price Anchoring Effect: Consumers tend to compare discounted prices with the
original price. A higher original price makes the discount seem more significant,
increasing the likelihood of purchase. Retailers strategically set higher “before” prices
to create an illusion of a better deal.
 Perceived Value vs. Actual Value: Customers often judge a product’s worth based
on the discount percentage rather than its intrinsic value. A product that appears to

34
 have a high markdown is often perceived as a better deal, even if similar products
exist at lower regular prices.
 Discount Thresholds and Buying Decisions: Research suggests that consumers are
more likely to be influenced by percentage-based discounts rather than flat-rate
reductions. For example, a “50% off” deal is often perceived as more attractive than
“Save $10,” even if the actual savings are the same.

These factors show how consumer psychology plays a crucial role in decision-making, often
leading to impulsive or planned purchases driven by perceived value rather than necessity.

2.2 The Scarcity and Urgency Effect in Discounts

Limited-time discounts create a sense of urgency and scarcity, which increases consumer
motivation to purchase:

 Fear of Missing Out (FOMO): Consumers are more likely to buy a product if they
believe it will soon be unavailable. Retailers use phrases like “Only 3 left in stock!” or
“Offer ends in 24 hours” to create urgency.
 Flash Sales and Limited-Time Offers: E-commerce platforms such as Amazon and
fashion retailers use short-duration discounts to drive immediate sales, leveraging the
psychological principle of scarcity.
 Exclusive Discounts for Members: VIP or loyalty-based discounts make consumers
feel special, increasing their emotional connection with the brand and encouraging
repeat purchases.

These tactics manipulate consumer emotions, making them more inclined to act quickly
without overanalyzing their need for the product.

2.3 Impulse Buying Behavior Triggered by Discounts

Seasonal discounts are known to increase impulse buying, where consumers make
unplanned purchases due to psychological triggers:

 Emotional Shopping: Consumers often shop to relieve stress, celebrate events, or

improve their mood. Discounts enhance this behavior by providing a justification for
indulgence.
 The "Deal Hunting" Mindset: Many shoppers derive pleasure from finding the
“best deal,” even if they don’t need the product. This is particularly evident during
Black Friday and Cyber Monday sales.
 Bundling and BOGO (Buy One Get One) Deals: These promotions encourage
consumers to buy more than they initially planned, increasing the overall transaction
value while making them feel they are getting more for their money.

35
Impulse purchases not only boost short-term sales but also create new customer acquisition
opportunities. However, retailers must balance these strategies to ensure long-term customer
loyalty rather than one-time transactions.

2.4 The Impact of Discounts on Brand Perception and Customer Loyalty

While discounts attract customers, they can also affect how a brand is perceived:

 Luxury vs. Discount-Driven Brands: Frequent discounts may reduce the perceived
value of premium brands. Consumers may start associating the brand with
affordability rather than exclusivity.
 Habitual Discount Shoppers: Some consumers only purchase from brands during
discount periods, reducing full-price sales and profitability. Retailers must find ways
to retain customers beyond seasonal promotions.
 Post-Discount Buying Behavior: Customers who initially buy during a discount
period may return if they had a positive shopping experience. Personalized follow-up
offers, loyalty rewards, and excellent customer service can convert discount-driven
buyers into long-term customers.

Brands must strategically balance discounts to attract new buyers while maintaining their
long-term value proposition.

2.5 Psychological Differences Among Consumer Segments

Not all consumers respond to discounts in the same way. Different customer segments have
unique psychological triggers:

 Bargain Hunters: These consumers actively seek discounts and are more likely to
shop during seasonal sales. They compare prices across multiple retailers and are less
brand-loyal.
 Luxury Shoppers: Customers in this category value brand exclusivity and may
perceive frequent discounts as reducing the prestige of a brand.
 Impulse Buyers: They make unplanned purchases driven by emotions and marketing
tactics, especially during high-urgency sales events.
 Practical Buyers: They wait for sales to buy necessary items and often stock up
during seasonal promotions.

Understanding these segments helps retailers design targeted marketing strategies that appeal
to specific consumer behaviors.

2.6 The Role of Technology in Enhancing Discount Psychology

Retailers use technology to enhance the psychological effects of discounts:

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  AI and Personalized Discounts: E-commerce platforms analyze past purchases to
offer customized discount recommendations, making consumers feel personally
valued.
 Gamification of Discounts: Some retailers use spin-the-wheel discounts or digital
scratch cards to engage customers and trigger excitement before a purchase.
 Social Proof and User Reviews: Seeing others buy discounted items increases
consumer confidence in the purchase. Phrases like “10 people bought this in the last
hour” encourage quick decisions.

These innovations strengthen the psychological appeal of discounts, making them more
effective in influencing buying behavior.

3. Relationship Between Discounts and Customer Loyalty

Seasonal discounts play a crucial role in shaping customer relationships, but their impact on
loyalty is complex. While discounts attract new customers and encourage repeat purchases,
excessive reliance on them can lead to price-sensitive consumers who only shop during
promotional periods. This section examines how discounts influence customer retention, the
balance between short-term sales and long-term brand loyalty, and strategies retailers use to
maintain customer engagement beyond discount periods.

3.1 The Short-Term vs. Long-Term Effects of Discounts on Loyalty

Discounts have both immediate and extended effects on customer purchasing behavior:

 Short-Term Attraction of New Customers: Discounts are an effective tool for

acquiring new customers by lowering the initial cost barrier. Consumers who may not
have considered a brand at full price are more likely to try its products during
seasonal promotions.
 The Risk of One-Time Transactions: Many customers shop during discount periods
without forming an emotional connection with the brand. Once prices return to
normal, these customers may switch to competitors offering better deals.
 Building Long-Term Loyalty Through Strategic Discounts: Some retailers use
discounts as an introduction to loyalty programs, encouraging customers to return for
future purchases by offering exclusive post-sale benefits, personalized rewards, or
tiered membership discounts.

Retailers must carefully balance their discount strategies to ensure they do not sacrifice long-
term profitability for short-term revenue spikes.

3.2 The Role of Loyalty Programs and Personalized Discounts

Loyalty programs and targeted discounts help retain customers beyond seasonal sales:

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  Point-Based Rewards Systems: Retailers offer points for every purchase, which can
later be redeemed for discounts, encouraging repeat business even outside
promotional periods. Examples include airline miles, store credit, or cashback
rewards.
 Exclusive Member-Only Discounts: Customers enrolled in loyalty programs receive
year-round special pricing, motivating them to stick with a single brand rather than
chasing discounts across different retailers.
 Personalized Discounts Based on Purchase History: AI-driven analytics help
businesses offer custom discounts tailored to an individual’s shopping behavior. A
customer who frequently buys electronics, for example, might receive a targeted
discount on related accessories rather than a generic store-wide sale.

Personalized and loyalty-based discounting ensures that customers feel valued beyond just
seasonal promotions, strengthening their connection to the brand.

3.3 Consumer Behavior: Discount Seekers vs. Brand Loyalists

Different consumer groups respond to discounts in unique ways, affecting long-term

retention:

 Discount-Driven Shoppers: These consumers prioritize price over brand loyalty.

They often compare prices across multiple retailers and wait for sales before making
purchases. If discounts are not available, they are likely to switch brands rather than
pay full price.
 Brand-Loyal Customers: Some customers remain loyal to a brand due to product
quality, customer service, and brand identity. While they may take advantage of
discounts, their purchasing decisions are less dependent on promotions.
 Occasional Shoppers Turned Loyal Customers: Some consumers initially engage
with a brand due to discounts but develop loyalty over time due to positive shopping
experiences, personalized engagement, or superior product quality.

Retailers must differentiate between these consumer groups and implement strategies to
convert discount-driven shoppers into long-term customers.

3.4 The Effect of Frequent Discounts on Brand Perception

Frequent discounting can alter a brand’s perceived value, impacting customer loyalty:

 Discount Fatigue and Devaluation: If discounts are offered too frequently,

customers may begin to question the true value of a product. For example, luxury
brands avoid excessive discounting to maintain their exclusivity and premium
reputation.
 Expectation of Perpetual Discounts: When customers become accustomed to
regular promotions, they may delay purchases until the next sale, reducing full-price

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 sales and profit margins. Brands like J.C. Penney experienced revenue declines after
attempting to eliminate frequent sales due to customer pushback.
 Balancing Discounts and Brand Integrity: Retailers can maintain brand prestige by
limiting discounts to specific occasions, bundling products rather than lowering
individual prices, or offering exclusive promotions to a select customer base.

A well-balanced discount strategy helps retailers maintain their brand’s perceived value while
still driving sales during key periods.

3.5 Emotional Connection and Customer Retention Post-Discount

Beyond pricing, brands must focus on emotional engagement to retain customers after
discount periods end:

 Post-Purchase Engagement Strategies: Brands can retain discount shoppers by

offering follow-up incentives such as thank-you emails, personalized product
recommendations, or discounts on future purchases.
 Customer Service as a Retention Tool: High-quality customer service during
discount events enhances customer experience, making buyers more likely to return
even at full price.
 Exclusive Community Building: Some brands create a sense of belonging through
VIP clubs, early access to sales, or special events, fostering long-term loyalty beyond
discount-driven shopping.

Building an emotional connection ensures that customers return to a brand based on value,
experience, and trust rather than just low prices.

3.6 Case Studies: Successful Discount Strategies for Customer Retention

Several brands have successfully balanced discounts and customer loyalty:

 Amazon Prime: While Amazon offers deep discounts during events like Prime Day,
it retains customers through exclusive benefits like free shipping, streaming services,
and personalized recommendations.
 Sephora’s Beauty Insider Program: Customers earn points with every purchase and
gain access to exclusive products, events, and discounts, encouraging repeat business
beyond seasonal sales.
 Nike’s Limited-Time Drops and Exclusive Member Discounts: By offering
limited-edition products and exclusive discounts to members, Nike maintains brand
prestige while rewarding loyal customers.

These strategies show that while discounts attract customers, long-term retention requires
additional incentives, experiences, and value propositions.

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4. Previous Research on the Effectiveness of Seasonal
Sales
Seasonal sales have been widely studied across various retail sectors to assess their impact on
consumer behavior, sales performance, and long-term business growth. Research findings
suggest that while seasonal sales drive short-term revenue spikes, their effectiveness in
customer retention and sustainable business growth depends on strategic planning. This
section explores key studies and insights from academic and industry research on seasonal
discounting.

4.1 The Impact of Seasonal Sales on Revenue and Profitability

Seasonal discounts are primarily designed to boost sales during specific periods, but their
overall financial impact varies across industries:

 Short-Term Revenue Growth: Studies indicate that seasonal discounts significantly

increase consumer spending, with major retail events such as Black Friday and Cyber
Monday generating billions of dollars in sales. Research by the National Retail
Federation (NRF) shows that holiday shopping accounts for a substantial portion of
annual retail revenue.
 Profitability Concerns: While sales volume increases during discount events,
research highlights the risk of lower profit margins due to excessive markdowns. A
study in the Journal of Retailing (2018) found that retailers offering deep discounts
experience a decline in per-unit profitability, which may not always be offset by
higher sales volumes.
 Industry-Specific Variations: Research has shown that industries such as electronics
and fashion benefit the most from seasonal sales, as consumers are willing to wait for
discounts on high-ticket items. However, luxury brands often avoid frequent
discounting to maintain their brand exclusivity and profitability.

The research suggests that while seasonal sales drive revenue spikes, retailers must carefully
manage discount levels to avoid eroding long-term profitability.

4.2 Consumer Behavior Trends During Seasonal Sales

Various studies have explored how consumers respond to seasonal discounts and what
motivates their purchasing decisions:

 Impulse Buying and Urgency: Research by Sharma & Alter (2020) found that the
limited-time nature of seasonal sales creates urgency, leading to higher impulse
buying rates. Consumers often perceive discounts as "loss aversion" opportunities,
where they feel they might lose out if they do not purchase immediately.

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  Delayed Purchasing Behavior: Studies indicate that consumers often postpone big-
ticket purchases in anticipation of seasonal discounts. According to a 2022 study by
McKinsey, nearly 60% of consumers delay electronics purchases until Black Friday
or Cyber Monday to secure lower prices.
 Emotional Triggers in Seasonal Sales: The psychological appeal of holiday sales,
such as gifting and social shopping experiences, influences purchasing decisions.
Research in consumer psychology suggests that festive moods and promotional
campaigns heighten consumer engagement during these sales periods.

These findings reveal that seasonal sales are driven by psychological and behavioral factors,
making it essential for retailers to craft compelling promotions to maximize engagement.

4.3 Customer Retention and Post-Sale Engagement After Seasonal

Discounts

One of the most debated topics in research is whether seasonal sales contribute to long-term
customer loyalty:

 High Customer Acquisition, Low Retention: Research suggests that while seasonal
discounts attract new customers, many do not return after the promotion ends. A
Harvard Business Review study (2021) found that only 30% of first-time seasonal
discount shoppers make repeat purchases at full price.
 Strategies for Retention: Studies recommend post-sale engagement tactics such as
loyalty programs, personalized follow-ups, and targeted promotions to convert
seasonal shoppers into loyal customers. A study in the Journal of Consumer Research
found that brands using personalized emails and exclusive post-sale offers increased
customer retention by 25%.
 The Role of Perceived Value: Research indicates that if customers associate a brand
solely with discounts, they are less likely to purchase at full price. Retailers with a
strong value proposition, excellent customer service, and consistent product quality
tend to retain a higher percentage of seasonal shoppers.

These studies highlight the challenge retailers face in converting seasonal shoppers into long-
term customers, emphasizing the need for strategic retention efforts.

4.4 The Effectiveness of Different Types of Seasonal Discounts

Research differentiates between various types of seasonal sales and their effectiveness in
driving sales and retention:

 Flash Sales vs. Extended Discounts: Studies show that limited-time "flash sales"
create a sense of urgency and higher conversion rates, whereas prolonged discount
periods may lead to consumer fatigue and lower perceived value.

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  Bundled Discounts and Cross-Selling: Research suggests that bundling products
together at a discount is more effective in retaining customers than offering individual
markdowns. A study in the International Journal of Retail & Distribution
Management found that bundling increases repeat purchase rates by 18%.
 Loyalty-Based Discounts: Brands that offer exclusive seasonal discounts to loyalty
members experience higher retention rates. According to a Deloitte report, retailers
using tiered loyalty-based seasonal discounts retain 40% more customers compared to
those offering generic public discounts.

These insights indicate that not all seasonal discount strategies yield the same results, and
retailers must tailor their approach based on their target audience.

4.5 Case Studies: Success Stories and Lessons from Failed Discount
Strategies

Analyzing real-world examples helps understand the effectiveness of seasonal discounting

strategies:

 Amazon’s Prime Day Success: Amazon’s exclusive Prime Day event has grown into
one of the biggest seasonal sales, generating billions in revenue while boosting Prime
membership subscriptions. Research suggests that by tying discounts to membership
perks, Amazon increases long-term customer retention.
 J.C. Penney’s Discounting Failure: In an attempt to eliminate frequent discounts,
J.C. Penney saw a dramatic drop in sales, as customers had become conditioned to
expect discounts. This case study highlights how a sudden shift in discounting
strategies can alienate existing customers.
 Nike’s Strategic Use of Limited-Time Sales: Nike employs seasonal discounts while
maintaining brand prestige by limiting markdowns to selected products and exclusive
members. Research suggests that such controlled discounting preserves brand equity
while driving sales.

These case studies emphasize that the success of seasonal discounts depends on how they are
structured and integrated into a retailer’s overall business strategy.

Research Methodology

1. Type of Research (Qualitative, Quantitative, or Mixed-Method)

1.1 Overview of Research Approaches

To analyze the impact of seasonal discounts on sales and customer retention in the retail
industry, selecting an appropriate research methodology is essential. Research can be
conducted using three main approaches: qualitative, quantitative, or a mixed-method
approach.

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  Qualitative Research focuses on subjective insights, customer perceptions, and
experiences. It explores how and why customers react to seasonal discounts and how
businesses strategize their promotional offers.
 Quantitative Research involves the collection of numerical data, statistical analysis,
and measurable patterns. It provides objective data to assess the relationship between
discounts and sales performance, as well as customer retention rates.
 Mixed-Method Research combines both qualitative and quantitative approaches to
provide a more comprehensive and balanced understanding of the impact of seasonal
discounts on retail business performance.

Given the nature of the study, a mixed-method research approach is the most suitable
choice, as it allows for an in-depth exploration of both measurable sales impacts and
consumer behavior trends.

1.2 Quantitative Research Approach

Quantitative research is crucial for understanding the statistical impact of seasonal discounts
on sales and customer retention. This study will employ numerical analysis to measure
changes in revenue, customer purchasing frequency, and long-term retention rates before,
during, and after discount periods.

Key Methods Used in Quantitative Research:

 Sales Data Analysis: Retailers' historical sales records will be analyzed to identify
revenue patterns during seasonal discount periods (e.g., Black Friday, Cyber Monday,
End-of-Season Sales).
 Customer Surveys and Questionnaires: A structured survey will be distributed to
customers to collect data on their shopping behaviors, including how often they
purchase during discount periods, whether they return after discounts, and their
perception of price reductions.
 Statistical Techniques: The study will use correlation analysis, trend forecasting, and
regression analysis to assess whether seasonal discounts lead to long-term revenue
growth or merely short-term sales spikes.

This quantitative approach helps measure the effectiveness of seasonal discounts objectively
and provides a solid statistical foundation for the study.

1.3 Qualitative Research Approach

While quantitative research provides numerical evidence, qualitative research is necessary to

understand customer attitudes, motivations, and perceptions regarding seasonal discounts.

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This approach enables an exploration of factors beyond just sales figures, such as brand
loyalty and consumer trust.

Key Methods Used in Qualitative Research:

 Customer Focus Groups: Small groups of customers will participate in discussions

about their shopping experiences, motivations behind purchasing during sales, and
whether they return to a retailer after discount periods.
 Retailer Interviews: Interviews with business owners, marketing managers, and
retail executives will provide insights into the strategies used to attract and retain
customers through discounts.
 Case Study Analysis: The study will examine real-life cases of successful and
unsuccessful discount campaigns to understand what works and what does not in the
retail industry.

Through qualitative analysis, the study will gain insights into consumer emotions,
psychological triggers, and long-term brand relationships that cannot be captured solely
through numerical data.

1.4 Justification for a Mixed-Method Approach

A mixed-method approach is the most effective way to understand the impact of seasonal
discounts because it combines the strengths of both qualitative and quantitative research.

 Comprehensive Analysis: While quantitative research identifies sales trends,

qualitative research explains why those trends occur.
 Enhanced Accuracy: By using both data-driven statistics and consumer insights, the
study ensures a more reliable and accurate analysis.
 Triangulation of Data: Cross-referencing numerical sales data with consumer
opinions and behaviors helps validate findings and reduces biases.

By integrating both research approaches, this study will provide a well-rounded evaluation of
how seasonal discounts influence retail sales and customer loyalty, offering valuable insights
for businesses and consumers alike.

2. Research Approach (Case Study, Survey, Observational Analysis)

To comprehensively analyze the impact of seasonal discounts on sales and customer retention
in the retail industry, a multi-method research approach is employed. This study
incorporates case studies, surveys, and observational analysis to provide a well-rounded
understanding of the topic. These methods allow for the examination of both numerical sales
performance and qualitative insights into customer behaviors and preferences.

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2.1 Case Study Approach

Definition and Importance:

A case study approach involves an in-depth analysis of real-world retail businesses to
understand how seasonal discounts influence their sales performance and customer retention
strategies. Case studies provide practical insights by examining specific examples of retailers
that have successfully (or unsuccessfully) implemented seasonal discounting strategies.

Method of Data Collection:

 Selection of Retail Businesses: Case studies will focus on both brick-and-mortar

and e-commerce retailers to examine variations in discount strategies across
different retail formats.
 Historical Sales Performance Analysis: Past sales records of selected retailers will
be analyzed to determine revenue changes during and after seasonal discount periods.
 Retailer Interviews: Key decision-makers, such as marketing managers and store
owners, will be interviewed to gain insights into their discount strategies, pricing
decisions, and customer engagement techniques.

Expected Outcomes:
By analyzing real-world cases, this approach helps in understanding:

 How retailers structure seasonal discounts (e.g., percentage-based reductions, bundled

discounts, or limited-time offers).
 The long-term effects of discounts on customer retention and brand loyalty.
 Best practices and potential challenges faced by businesses in implementing discount
strategies.

2.2 Survey-Based Research

Definition and Importance:

A survey-based approach is used to collect primary data from consumers regarding their
shopping behavior during seasonal discounts. Surveys provide measurable insights into how
discounts influence customer decisions and whether they contribute to long-term brand
loyalty.

Method of Data Collection:

 Target Audience: The survey will be distributed to a diverse group of shoppers,

including frequent discount shoppers and regular-price customers, across different
retail categories such as fashion, electronics, and groceries.

45
  Survey Questions: The questionnaire will include both closed-ended and open-
ended questions focusing on:
o Frequency of shopping during seasonal discounts.
o Primary motivations behind shopping during discounts (e.g., price reduction,
urgency, limited-time offers).
o Post-purchase behavior (whether customers return to the store after the
discount period).
o Brand perception changes due to discounts (whether they view discounted
brands as lower in quality).
 Survey Distribution: Online survey tools (Google Forms, SurveyMonkey) and in-
store surveys will be used for data collection.

Expected Outcomes:
The survey approach will help in understanding:

 Whether customers buy impulsively during seasonal sales or plan their purchases in
advance.
 If discounts encourage repeat purchases or if customers only shop when discounts are
available.
 The demographics and spending habits of discount-driven shoppers.

2.3 Observational Analysis

Definition and Importance:

Observational analysis is used to study customer behavior in a natural shopping
environment without direct interaction. This method helps in identifying patterns in
consumer decision-making during seasonal sales.

Method of Data Collection:

 In-Store Observations: Shoppers' behaviors will be observed in retail stores during

peak discount seasons (e.g., Black Friday, Christmas Sales). Factors such as time
spent in-store, most frequently visited sections, and purchasing decisions will be
analyzed.
 Online Shopping Behavior Tracking: E-commerce platforms will be analyzed for
trends in website traffic, cart abandonment rates, and most-purchased items during
discount periods.
 Competitor Analysis: Observing how different retailers set their discount strategies,
including promotional displays, advertisement placement, and pricing tactics.

Expected Outcomes:
Observational analysis will provide insights into:

 How consumers navigate through stores and online platforms during seasonal sales.

46
  The effectiveness of marketing strategies such as limited-time deals, flash sales, and
bundle offers in influencing customer behavior.
 Customer reactions to different types of discount offers (e.g., buy-one-get-one-free vs.
direct price cuts).

Justification for a Multi-Method Approach

Using case studies, surveys, and observational analysis together provides a holistic
understanding of the impact of seasonal discounts on retail performance.

 Case studies offer real-world insights into the strategic implementation of discounts.
 Surveys provide direct feedback from consumers on their shopping habits and
loyalty.
 Observational analysis captures authentic behavioral responses during discount
periods.

3. Selection Criteria for Data Sources (Retail Brands, Customer Demographics)

To ensure a comprehensive and accurate analysis of the impact of seasonal discounts on sales
and customer retention in retail, it is essential to carefully select data sources. The selection
process focuses on two primary categories: retail brands and customer demographics.
Choosing the right data sources allows for a balanced evaluation of both the business
perspective (how retailers implement discounts) and the consumer perspective (how
customers respond to discounts).

3.1 Selection Criteria for Retail Brands

Retail brands serve as a primary data source for this study, as they provide insights into sales
performance, discount strategies, and customer retention efforts. The following criteria
are used to select retail brands for analysis:

 Industry Representation: Retail brands are chosen from diverse sectors, including
fashion, electronics, grocery, and online marketplaces. This diversity ensures that the
impact of seasonal discounts is examined across different product categories.
 Business Model Variations: Both brick-and-mortar stores and e-commerce
platforms are included in the study to compare how seasonal discounts influence
customer behavior in physical stores versus online shopping.
 Market Positioning: The study includes a mix of premium brands, mid-range
retailers, and discount chains to evaluate how discounts affect customer loyalty
across different pricing strategies.

47
  Sales History and Discount Practices: Retailers with consistent seasonal discount
strategies (such as Black Friday and End-of-Season sales) are prioritized, ensuring
that the study focuses on brands that actively engage in discount-driven sales.
 Geographical Presence: Retailers with both local and global market reach are
selected to compare how seasonal discounts impact different customer bases across
various regions.

The inclusion of a diverse range of retailers allows for a balanced analysis of seasonal
discounts, helping to determine whether discount-driven sales strategies work differently for
different retail brands and business models.

3.2 Selection Criteria for Customer Demographics

Understanding customer demographics is crucial to analyzing how different groups of

consumers respond to seasonal discounts. The study considers various demographic factors to
evaluate how purchasing behavior differs across customer segments. The key selection
criteria include:

A) Age Groups and Generational Differences

 Gen Z (18-25 years): Typically more tech-savvy and driven by social media
marketing, they often engage in impulse buying and respond to limited-time
discounts.
 Millennials (26-40 years): More inclined toward brand loyalty but also seek value-
based purchases. They are influenced by online reviews, promotions, and cashback
offers.
 Gen X (41-55 years): More price-sensitive but prioritize quality and reliability. They
often compare discounts before making purchasing decisions.
 Baby Boomers (56+ years): Less influenced by digital promotions but actively
participate in traditional seasonal sales like Black Friday and Holiday discounts.

By segmenting customers by age, the research identifies which age group is most
influenced by seasonal discounts and how it impacts their repeat purchase behavior.

B) Income Levels and Spending Power

 Low-income consumers: More responsive to discounts as a means to afford products

they may not usually purchase at full price.
 Middle-income consumers: Balance between price and quality, often seeking the
best value for their money during seasonal sales.
 High-income consumers: Less dependent on discounts but may still engage in luxury
brand seasonal promotions.

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This segmentation helps in determining whether discounts primarily attract price-sensitive
shoppers or if they also influence high-income customers to spend more during sales events.

C) Shopping Behavior and Purchase Intentions

 Frequent Shoppers: Customers who shop regularly and look for deals year-round.
 Occasional Shoppers: Those who primarily shop during major sales events.
 Loyal Customers: Consumers who continue to buy from a brand post-sale.
 Discount-Driven Shoppers: Those who only make purchases when there are
seasonal sales.

By analyzing different shopping behaviors, the study explores whether seasonal discounts
help retailers build long-term customer loyalty or merely attract one-time deal-seekers.

3.3 Data Collection Sources

To gather comprehensive insights, data is collected from the following sources:

 Retailer Sales Reports: Examining revenue changes before, during, and after
seasonal sales.
 Customer Surveys and Questionnaires: Collecting feedback on shopping habits,
brand perception, and discount influence.
 Industry Reports and Market Research Studies: Utilizing secondary data from
retail industry analysis firms.
 Social Media and Online Shopping Trends: Analyzing consumer engagement with
promotional campaigns on platforms like Instagram, Facebook, and e-commerce
websites.
 Loyalty Program Data: Evaluating whether customers who purchase during
seasonal discounts continue shopping post-sale.

By combining retail data and customer demographics, this research ensures a well-rounded
approach to understanding how seasonal discounts impact both short-term sales and long-
term customer retention.

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 Data Collection

1. Primary Data Collection Methods

A) Surveys and Questionnaires
Target Respondents

To gather valuable insights on the effects of seasonal discounts, this study focuses on retail
customers who actively participate in seasonal discount events. The respondents are selected
based on key demographic factors such as:

 Age Groups: Young adults (18-25), working professionals (26-40), middle-aged

consumers (41-60), and senior shoppers (60+).
 Income Levels: Low-income, middle-income, and high-income consumers to
examine how budget constraints influence shopping decisions.
 Shopping Frequency: Regular shoppers who purchase during seasonal discounts and
occasional shoppers who only take advantage of specific sales events.
 Geographical Diversity: Consumers from urban, suburban, and rural areas to
understand regional variations in shopping behavior.

By targeting a diverse consumer base, this research ensures a comprehensive

understanding of how seasonal discounts affect different customer segments and their
long-term purchasing habits.

Survey Focus

The survey is designed to capture critical data points regarding consumer behavior,
perceptions, and preferences related to seasonal discounts. Key focus areas include:

1. Shopping Habits:
a. How frequently do customers shop during seasonal sales?
b. Do they plan purchases in advance, or do they buy impulsively?
c. What types of products do they prioritize during seasonal discounts
(electronics, clothing, household goods, etc.)?
2. Discount Expectations:
a. What percentage of discount is considered attractive and worth purchasing?
b. Do customers compare discounts across multiple retailers before making a
purchase?
c. Do they prefer direct price reductions, cashback offers, or bundled deals?

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 3. Post-Purchase Behavior:
a. How satisfied are customers with their purchases after seasonal sales?
b. Do they return products more frequently due to impulsive buying?
c. How often do they regret purchases made during heavy discount periods?
4. Brand Loyalty Impact:
a. Do customers continue purchasing from the same retailer after a seasonal sale?
b. Are they more likely to sign up for loyalty programs or memberships if
discounts are offered?
c. Does heavy discounting dilute brand value and reduce long-term attachment to
a specific retailer?

By focusing on these areas, the survey provides quantifiable data that helps analyze whether
seasonal discounts create sustainable business growth or merely attract one-time bargain
shoppers.

Distribution Channels

To maximize reach and ensure a high response rate, the survey is distributed through multiple
online and offline channels:

1. Online Surveys:
a. Google Forms & Typeform: Used for easy data collection from a broad
audience.
b. Email Campaigns: Sent to existing retail customers who have previously
participated in seasonal discounts.
c. Retailer Websites & Apps: Pop-up surveys offered after checkout or as part
of customer feedback programs.
2. In-Store Surveys:
a. Paper Surveys at Checkout: Brief questionnaires handed out after purchases
during discount seasons.
b. Kiosk Surveys: Digital touch-screen surveys set up at major retail stores to
encourage on-the-spot feedback.
c. Receipt-Based Surveys: Customers incentivized to fill out surveys using QR
codes on receipts in exchange for additional discounts.
3. Social Media Polls & Feedback Forms:
a. Instagram & Facebook Polls: Quick engagement methods to understand
customer expectations.
b. Twitter Polls: Short surveys gathering opinions on discount effectiveness.
c. Retailer-Hosted Discussion Groups: Online communities where customers
share shopping experiences.

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Using multiple channels ensures that both online shoppers and in-store customers are
represented, creating a balanced and holistic dataset for analysis.

Expected Insights

The survey is expected to reveal key insights into customer behavior and the long-term
effects of seasonal discounts on sales performance and retention:

1. Influence of Discounts on Purchase Decisions

a. Understanding whether customers buy products because they genuinely need
them or because they are attracted by discount rates.
b. Identifying if customers delay purchases to wait for seasonal discounts rather
than shopping year-round.
2. Long-Term Customer Retention
a. Measuring the percentage of seasonal discount shoppers who return to the
same retailer for non-discounted purchases.
b. Assessing the effectiveness of post-discount engagement strategies (emails,
exclusive deals, loyalty points).
3. Consumer Trust and Satisfaction
a. Evaluating whether customers feel they get genuine value from seasonal
discounts.
b. Identifying whether aggressive discounting damages trust by making
customers suspicious of inflated original prices.
4. Brand Loyalty vs. Price Sensitivity
a. Understanding if frequent discounts make customers brand-loyal or price-
sensitive, only shopping when promotions are active.
b. Determining whether customers develop stronger relationships with retailers
who offer personalized or exclusive seasonal discounts.

2. Secondary Data Collection

Secondary data collection involves gathering information from existing sources such as sales
reports, market research studies, industry reports, and academic literature. This method
helps in understanding past trends, analyzing historical data, and validating findings from
primary research.

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Sources of Secondary Data:

1. Sales Reports and Retail Data

a. Retailers' historical sales data before, during, and after seasonal discount
events.
b. Revenue and profit margin fluctuations across different discount periods.
c. Inventory turnover rates during seasonal sales.
2. Market Research and Industry Reports
a. Reports from research firms like Nielsen, McKinsey, and Statista on
seasonal sales impact.
b. Competitor analysis reports detailing how different retailers utilize discount
strategies.
c. Consumer spending behavior trends published by industry experts.
3. Previous Studies and Academic Research
a. Literature on the relationship between discounting and customer retention.
b. Studies on psychological pricing strategies and consumer perception of value.
c. Reports on the impact of seasonal discounts on long-term business
sustainability.
4. Government and Retail Associations' Publications
a. National retail federation (NRF) reports on holiday shopping trends.
b. Economic data on consumer spending habits during major discount periods.
c. Policy guidelines on pricing regulations and fair trade practices.

By utilizing secondary data, this research ensures a strong theoretical foundation and
comparative analysis between historical trends and current consumer behavior.

3. Time Frame for Data Collection

Defining a clear time frame for data collection ensures the study captures relevant and
accurate insights. The time frame for collecting both primary and secondary data is divided
into specific phases:

1. Pre-Seasonal Discount Period (1-2 Months Before Sales Events)

 Objective: Understand customer purchase behavior before discounts are announced.

 Activities:
o Survey customers on their shopping plans, budget, and brand preferences.
o Collect sales data from retailers to analyze pre-discount revenue trends.
o Examine past research on pre-discount shopping behavior.

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2. Peak Seasonal Discount Period (During Major Sales Events)

 Objective: Measure the direct impact of discounts on sales and customer purchasing
decisions.
 Activities:
o Distribute surveys and questionnaires to active shoppers.
o Track online and in-store sales reports to identify revenue spikes.
o Analyze retailer promotional strategies and their effectiveness.

3. Post-Seasonal Discount Period (1-2 Months After Sales Events)

 Objective: Evaluate customer retention and long-term impact of discounts.

 Activities:
o Conduct follow-up surveys to see if customers continue shopping with the
same retailer.
o Analyze repeat purchase rates and customer loyalty trends.
o Compare post-sale revenue with pre-sale trends to assess business impact.

By structuring the data collection process into these three key phases, the research ensures a
comprehensive analysis of how seasonal discounts affect sales performance and customer
retention over time.

Descriptive Method

The descriptive research method is used to understand how seasonal discounts impact sales
and customer retention. This method collects factual data and analyzes consumer behavior
before, during, and after discount periods without influencing participants.

Key Features of the Descriptive Method:

 It records real-world shopping patterns through surveys, sales data analysis, and
customer feedback.
 It helps in identifying trends in discount-driven sales and customer loyalty.
 It provides statistical insights into consumer preferences and purchasing habits during
seasonal sales.

Implementation of the Descriptive Method:

 Surveys and Questionnaires: Directly collect consumer opinions about seasonal

discounts.
 Retail Sales Data Analysis: Examine past sales records to identify trends in revenue
and customer spending habits.

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  Customer Reviews & Feedback: Analyze consumer responses to discount offers,
pricing strategies, and brand perception.
 Observation of Shopping Behavior: Monitor how customers react to limited-time
discount deals both in-store and online.

By using the descriptive method, this study aims to determine whether seasonal discounts
lead to short-term sales increases or long-term customer loyalty.

Survey Questions for Google Forms

(These multiple-choice questions are simple, clear, and focused on gathering insights for
research.)

1. How often do you shop during seasonal discount sales?

a) Always (every seasonal sale)

b) Frequently (most seasonal sales)
c) Sometimes (only for big sales like Black Friday)
d) Rarely (only when necessary)
e) Never

2. What type of seasonal discounts influence your purchase decisions the

most?

a) Percentage discounts (e.g., 50% off)

b) Buy One Get One Free (BOGO) offers
c) Cashback or store credit rewards
d) Free shipping or additional perks
e) None of the above

3. Why do you shop during seasonal sales?

a) To save money on necessary purchases

b) To buy luxury items at lower prices
c) To take advantage of limited-time offers
d) To try new brands/products
e) I don’t usually shop during sales

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4. Have you ever purchased a product just because of a discount, even if
you didn’t plan to buy it?

a) Yes, many times

b) Yes, sometimes
c) Rarely
d) Never

5. Do you return to the same store or brand after purchasing during a

seasonal discount?

a) Yes, if I am satisfied with the product and service

b) Only if I get another good discount
c) Maybe, depending on my future needs
d) No, I only buy during sales

6. What influences your decision the most when choosing between two
discounted products?

a) The highest percentage of discount

b) Brand reputation and trust
c) Product quality and reviews
d) Additional benefits (cashback, warranty, free shipping)
e) Availability of the product

7. How do you usually find out about seasonal discounts?

a) Social media advertisements (Instagram, Facebook, etc.)

b) Online shopping platforms (Amazon, Flipkart, etc.)
c) Emails and SMS promotions
d) In-store posters and banners
e) Friends and family recommendations

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8. Do seasonal discounts affect your perception of a brand?

a) Yes, discounts make me trust the brand more

b) Yes, but only if the discount is reasonable
c) No, I care more about product quality than discounts
d) No, I think discounts reduce brand value

RESPONSES:

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Analysis of the Responses

1. How often do you shop during seasonal discount sales?

 Always – 4 respondents
 Frequently – 8 respondents
 Sometimes – 6 respondents
 Rarely – 7 respondents
 Never – 2 respondents

🔹 Observation: A majority of respondents (18 out of 27) shop during seasonal sales either
frequently or sometimes, showing that seasonal discounts attract significant consumer
attention.

2. What type of seasonal discounts influence your purchase decisions the most?

 Percentage Discounts – 3 respondents

 BOGO Offers – 5 respondents
 Cashback/Store Credit – 4 respondents
 Free Shipping/Perks – 3 respondents
 None of the above – 12 respondents

🔹 Observation: A large portion (12 respondents) indicated that discounts do not strongly
influence their purchasing decisions, which may suggest that factors like brand trust and
product quality matter more to them. However, BOGO offers and cashback still have notable
appeal.

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3. Why do you shop during seasonal sales?

 Save Money on Necessary Purchases – 5 respondents

 Buy Luxury Items at Lower Prices – 4 respondents
 Take Advantage of Limited-Time Offers – 7 respondents
 Try New Brands/Products – 4 respondents
 Don’t Shop During Sales – 7 respondents

🔹 Observation: Limited-time offers are the strongest motivator for seasonal shopping,
followed by saving money. However, a notable percentage (7 respondents) do not engage in
sales, indicating that not all customers find discounts appealing.

4. Have you ever purchased a product just because of a discount, even if you didn’t plan to
buy it?

 Yes, Many Times – 3 respondents

 Yes, Sometimes – 7 respondents
 Rarely – 9 respondents
 Never – 8 respondents

🔹 Observation: Impulse buying due to discounts is not a dominant behavior, as 17

respondents either rarely or never purchase unplanned items. This suggests that while
discounts attract attention, they do not always trigger impulse purchases.

5. Do you return to the same store or brand after purchasing during a seasonal discount?

 Yes, if satisfied – 7 respondents

 Only if another good discount is available – 6 respondents
 Maybe, depending on future needs – 7 respondents
 No, only buy during sales – 7 respondents

🔹 Observation: Customer retention after seasonal sales is mixed. While satisfaction plays a
role, 13 respondents indicated they only return for another discount or based on necessity,
showing that discounts alone do not guarantee loyalty.

6. What influences your decision the most when choosing between two discounted
products?

 Highest Percentage Discount – 4 respondents

 Brand Reputation and Trust – 4 respondents
 Product Quality and Reviews – 7 respondents
 Additional Benefits (Cashback, Warranty, Free Shipping) – 7 respondents
 Availability of the Product – 5 respondents

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🔹 Observation: Product quality, reviews, and additional benefits (like cashback or
warranties) have more influence than just discount percentage, highlighting that consumers
consider overall value rather than just price reductions.

7. How do you usually find out about seasonal discounts?

 Social Media Ads – 6 respondents

 Online Shopping Platforms – 5 respondents
 Emails & SMS Promotions – 4 respondents
 In-store Posters & Banners – 6 respondents
 Friends & Family Recommendations – 6 respondents

🔹 Observation: Awareness of discounts is evenly distributed among different channels, with

social media, in-store banners, and word-of-mouth being major sources. This suggests that
retailers should focus on multi-channel marketing strategies.

8. Do seasonal discounts affect your perception of a brand?

 Yes, Discounts Build Trust – 6 respondents

 Yes, But Only If Reasonable – 7 respondents
 No, Quality Matters More – 8 respondents
 No, Discounts Reduce Brand Value – 6 respondents

🔹 Observation: While discounts help build trust, 14 respondents prioritize product quality
over discounts, and 6 even think discounts reduce brand value. This indicates that excessive
discounting could harm brand perception.

Key Takeaways from the Analysis

1. Majority of respondents participate in seasonal sales – 67% shop at least

sometimes, showing that discounts play a key role in consumer purchasing behavior.
2. BOGO offers and cashback are strong motivators, but many consumers (44%) are
not swayed by discounts alone.
3. Impulse buying is limited – Most respondents are careful about their purchases even
with discounts.
4. Customer retention is not guaranteed – 13 respondents indicated they only return if
discounts are available, emphasizing the need for strong post-sale engagement.
5. Brand trust, product quality, and additional benefits influence decisions more
than just discount percentage.
6. Retailers should use a multi-channel marketing strategy to reach consumers, as
discount awareness is spread across multiple sources.

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 7. Brand perception can be negatively impacted by excessive discounts, making it
crucial for retailers to balance discounting strategies with brand value.

This analysis provides valuable insights into how seasonal discounts impact sales and
customer retention. Let me know if you need further breakdowns or visual representations!

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 Data Analysis

To analyze sales trends and customer behavior based on survey responses, the following
statistical tools and software can be used:

1. Microsoft Excel
a. Used for data cleaning, sorting, and filtering responses.
b. Pivot tables help summarize responses and visualize trends.
c. Graphical analysis (bar charts, pie charts) to display frequency distributions.
2. SPSS (Statistical Package for the Social Sciences)
a. Used for advanced statistical analysis such as correlations and regression.
b. Helps identify patterns and relationships between discount types and
customer behavior.
3. Google Forms Analytics
a. Provides auto-generated charts summarizing responses.
b. Allows quick insights into customer preferences and behavior.
4. Python (Pandas, NumPy, Matplotlib, Seaborn)
a. Used for data visualization and detecting hidden trends.
b. Machine learning models (e.g., clustering) can help segment customers based
on discount sensitivity.

Data Analysis of the First 27 Responses

1. Shopping Frequency During Seasonal Discount Sales

 Key Findings:
o 18 out of 27 respondents (67%) shop during seasonal sales either frequently
or sometimes.
o Only 2 respondents never shop during these sales.
o This indicates that seasonal discounts attract a significant consumer base,
making them an effective marketing strategy.

2. Influence of Discount Types on Purchase Decisions

 Key Findings:
o 12 respondents (44%) stated that discounts do not strongly influence their
buying decisions.
o Among the rest, BOGO offers (5 respondents) and cashback (4
respondents) were more appealing.
o This suggests that brand trust and product quality may be stronger
purchase motivators than discounts alone.

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3. Reasons for Shopping During Seasonal Sales

 Key Findings:
o 7 respondents (26%) shop to take advantage of limited-time offers,
making this the top reason for seasonal shopping.
o 5 respondents (18%) shop to save on necessary purchases, showing that
discounts also help budget-conscious consumers.
o 7 respondents (26%) do not shop during seasonal sales, indicating a
segment that remains unaffected by promotional discounts.

4. Impulse Buying Behavior

 Key Findings:
o 17 respondents (63%) rarely or never purchase unplanned items due to
discounts.
o Only 3 respondents (11%) frequently make impulse purchases due to
discounts.
o This indicates that while discounts attract attention, they do not always drive
unplanned purchases.

5. Customer Retention After Seasonal Sales

 Key Findings:
o 7 respondents (26%) return to the same brand if satisfied with the
product.
o 6 respondents (22%) return only if another discount is available, showing
discount-driven loyalty.
o 7 respondents (26%) only buy during sales, which suggests limited long-
term brand engagement from discounts alone.

6. Factors Influencing Choice Between Two Discounted Products

 Key Findings:
o Product quality and reviews (7 respondents) and additional benefits (7
respondents) are the most important factors.
o Highest percentage of discount (4 respondents) is a less influential factor,
highlighting that consumers prioritize value over just discounts.

7. Awareness of Seasonal Discounts

 Key Findings:
o Social media, in-store posters, and word-of-mouth recommendations are
the top sources of discount awareness.
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 o This suggests that brands should focus on a multi-channel marketing
strategy to maximize visibility.

8. Impact of Seasonal Discounts on Brand Perception

 Key Findings:
o 7 respondents (26%) said they trust brands more if the discount is
reasonable.
o 6 respondents (22%) believe excessive discounts reduce brand value,
suggesting that aggressive discounting may harm brand perception.

Overall Analysis and Insights

 Seasonal discounts attract a large audience (67%), but do not necessarily lead to
customer loyalty.
 Discount type preferences vary, but BOGO and cashback seem to be the most
appealing.
 Impulse purchases are uncommon, meaning that discounts alone may not be
enough to drive immediate sales.
 Quality and brand trust outweigh the percentage of discount offered when
choosing between discounted products.
 Multi-channel marketing strategies are key to promoting discounts effectively.

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Results

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Here are visual representations of the survey data, showing trends in shopping behavior,
discount preferences, and customer retention. Now, let’s analyze:

1. Trends Observed in Sales Before, During, and After Seasonal Discounts

 Before Sales: Most respondents don’t shop regularly unless necessary, but 18 out of
27 respondents do shop when discounts appear, showing that sales events
significantly increase shopping activity.
 During Sales: Discounts influence buyers, especially limited-time offers and BOGO
deals. However, 12 respondents said discounts do not influence them much,
suggesting brand and quality matter more.
 After Sales: Customer retention is mixed—while 7 return if satisfied, 13 return only
for discounts or based on necessity, meaning sales alone do not guarantee long-term
loyalty.

2. Insights Into Customer Retention Patterns

 Retention Factors: Trust, quality, and additional benefits (like warranties) are key in
securing repeat customers. The highest percentage discount alone is not the top
deciding factor.
 Impulse Buying: Most consumers rarely make unplanned purchases due to discounts,
meaning well-planned discount strategies (such as exclusive perks) may be more
effective.
 Brand Perception: While discounts build trust for some, 8 respondents value quality
more, and 6 feel discounts lower a brand’s value.

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 Findings and Discussion

1. Summary of Key Findings

 Seasonal Discount Shopping Behavior:

o 18 out of 27 respondents shop during seasonal sales either frequently or
sometimes, confirming the strong appeal of discounts.
o 7 respondents rarely shop, and 2 never participate, indicating that some
customers are not influenced by discounts.
 Types of Discounts That Influence Purchases:
o 12 respondents claimed that discounts do not significantly influence their
decisions, suggesting that brand trust and product quality play a bigger role.
o Among those influenced, BOGO offers (5 responses) and cashback/store
credit (4 responses) were more popular than simple percentage discounts.
 Reasons for Shopping During Sales:
o The top reason was taking advantage of limited-time offers (7
respondents), followed by saving money on necessary purchases (5
respondents).
o 7 respondents stated they do not shop during sales at all, suggesting a
segment of consumers who avoid discounts.
 Impulse Buying Behavior:
o 17 out of 27 respondents rarely or never make unplanned purchases due
to discounts.
o Only 3 respondents admitted to impulse buying frequently, showing that
most consumers still prioritize planned spending.
 Customer Retention After Sales:
o 7 respondents return if satisfied, while another 7 only buy during sales.
o 6 respondents return only if another discount is available, suggesting a
lack of brand loyalty among many sale shoppers.
 Factors Influencing Discounted Purchases:
o Product quality and reviews (7 responses) and additional benefits (7
responses, such as cashback, warranty, or free shipping) were more
influential than just discount percentage.
o Only 4 respondents selected the highest discount percentage as the
primary factor, emphasizing that customers look beyond price reductions.
 How Consumers Learn About Discounts:
o Information sources were evenly distributed across social media ads, in-store
banners, online platforms, and word-of-mouth, highlighting the importance of
a multi-channel marketing strategy.
 Brand Perception and Discounts:
o 8 respondents believe quality matters more than discounts.

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 o 6 respondents feel discounts enhance brand trust, but another 6 think
discounts reduce brand value.

2. Interpretation of Results in Relation to Research Questions

Q1: Do seasonal discounts influence consumer shopping behavior?

 Yes, 67% of respondents (18 out of 27) shop during seasonal sales at least
sometimes.
 However, only 3 respondents frequently engage in impulse buying, meaning
discounts alone do not automatically drive unnecessary purchases.

Q2: What types of discounts are most effective?

 BOGO offers and cashback/store credit had stronger appeal than simple percentage
discounts.
 12 respondents indicated that discounts do not influence them, suggesting a shift
toward other purchasing priorities such as brand reputation and product quality.

Q3: Do seasonal discounts impact brand loyalty and customer retention?

 Only 7 respondents return due to satisfaction, while 13 return only if another

discount is available or based on necessity.
 This indicates that while sales increase short-term sales, they do not guarantee long-
term loyalty unless brands build trust and deliver quality.

Q4: What are the most effective marketing channels for promoting discounts?

 Consumers discover discounts through a variety of sources (social media, online

platforms, in-store ads, and word-of-mouth), meaning retailers should adopt a
multi-channel marketing approach.

Q5: How do discounts affect brand perception?

 8 respondents prioritize product quality over discounts, while 6 believe discounts

lower brand value.
 This suggests that while discounts attract buyers, excessive reliance on them might
harm a brand’s premium image.

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3. Implications for Retailers and Marketing Strategists

A. Enhancing Sales Without Relying Solely on Discounts

 Since discounts alone do not always influence purchase decisions (12 respondents
said they don’t matter), retailers should highlight product quality, trust, and
additional benefits (e.g., warranties, free shipping, loyalty rewards).

B. Creating a Balanced Promotional Strategy

 Since BOGO offers and cashback/store credit are more appealing than
percentage discounts, retailers should focus on these deal structures instead of just
reducing prices.
 Time-limited deals (flash sales) are effective, as urgency was the top reason people
shop during sales.

C. Retaining Customers Beyond Seasonal Sales

 7 respondents only shop during discounts, meaning retailers must convert discount
shoppers into loyal customers.
 Strategies like exclusive loyalty programs, personalized discounts, and post-sale
engagement (emails, rewards programs, premium services) can increase retention.

D. Multi-Channel Marketing for Maximum Reach

 Since no single marketing channel dominates consumer awareness, brands should

invest in a combination of:
o Social media ads to engage younger audiences
o In-store promotions for physical shoppers
o Email/SMS marketing for personalized offers
o Word-of-mouth strategies (referral programs, influencer collaborations)
to build trust

E. Managing Brand Perception When Using Discounts

 Since some respondents feel discounts lower brand value, premium brands should
limit excessive discounts and instead offer perks like free shipping, early access,
or bundle deals to maintain exclusivity.

Conclusion

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Seasonal discounts have long been a strategic tool in retail, driving increased sales and
attracting both new and existing customers. The findings of this study highlight the
effectiveness of seasonal discounts in influencing consumer purchasing behavior, while also
revealing the complexities of customer retention in a discount-driven market. This conclusion
synthesizes the key takeaways from the analysis and discusses their broader implications for
retailers and marketing strategists.

One of the primary insights from the study is that seasonal discounts significantly impact
consumer shopping patterns. A majority of respondents (18 out of 27) shop during sales
either frequently or sometimes, reinforcing the idea that discounts attract substantial
consumer attention. However, it is also evident that a significant portion of customers (9
respondents) shop rarely or never during seasonal sales, indicating that not all consumers are
motivated by discounts alone. This suggests that while seasonal promotions are effective,
they are not a universal incentive for all shoppers. Retailers must consider diverse strategies
to appeal to both discount-driven customers and those who prioritize other purchasing
factors, such as product quality and brand reputation.

The study also sheds light on the types of discounts that are most effective in influencing
purchase decisions. Contrary to common assumptions, percentage-based discounts are not the
most compelling incentive. Instead, BOGO (Buy One Get One) offers and cashback/store
credit have a greater appeal. Interestingly, 12 respondents reported that discounts do not
significantly influence their decisions, highlighting that factors like brand trust, product
quality, and perceived value are crucial in purchase behavior. This finding suggests that
retailers should not rely solely on price reductions but rather offer additional incentives such
as loyalty rewards, warranties, and bundled deals to create lasting customer relationships.

Another crucial finding is that impulse buying due to discounts is not as prevalent as often
assumed. A substantial number of respondents (17 out of 27) rarely or never purchase
products solely due to a discount. While discounts do attract customers, they do not always
lead to spontaneous, unplanned purchases. This highlights the importance of targeted
marketing strategies that focus not only on price reduction but also on conveying product
value and creating a sense of urgency through limited-time offers.

Customer retention following seasonal sales presents a mixed picture. While 7 respondents
indicated they would return to a store if satisfied, an equal number stated they only shop
during discounts. Furthermore, 6 respondents return only when another discount is available.
These insights reveal that seasonal discounts may drive short-term sales spikes, but they do
not guarantee long-term customer loyalty. For retailers, this underscores the importance of
post-sale engagement strategies, such as personalized offers, loyalty programs, and customer
service enhancements, to encourage repeat purchases beyond discount periods.

The study also highlights the diverse ways in which consumers discover seasonal discounts.
No single marketing channel dominates, as respondents cited social media, online shopping
platforms, in-store banners, and word-of-mouth as key sources of discount awareness. This
indicates that a multi-channel marketing strategy is crucial for reaching a broad customer
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base. Retailers should ensure they leverage digital platforms, traditional advertising, and
referral incentives to maximize their promotional reach.

Another critical insight from the study is the impact of discounts on brand perception. While
some respondents (6 out of 27) believe that discounts enhance brand trust, another 6
respondents feel that frequent discounts can reduce a brand’s perceived value. Additionally, 8
respondents prioritize product quality over discounts. These findings suggest that while
discounts are effective in attracting customers, excessive reliance on them may harm a
brand’s premium image. Retailers, especially those positioning themselves as high-end
brands, should carefully balance their discount strategies with value-driven marketing and
exclusive offers to maintain their brand prestige.

In conclusion, while seasonal discounts are an essential tool for boosting short-term sales,
they are not a guaranteed method for securing long-term customer loyalty. The study
emphasizes the need for retailers to adopt a balanced approach that integrates discounts with
value-added services, personalized engagement, and multi-channel marketing strategies. By
focusing on customer experience, trust, and post-sale engagement, retailers can enhance
customer retention and sustain profitability beyond seasonal promotions. Ultimately, the most
successful retail strategies will be those that not only drive immediate sales but also build
long-term consumer relationships and brand loyalty.

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 References

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