From discounts to brand love: Examining the long-term impact of promotional strategies on customer loyalty

Abstract

This study investigates the long-term effects of various promotional strategies on customer loyalty, with a particular focus on emotional brand attachment as a mediating factor. Using a cross-sectional survey design, data were collected from 520 consumers representing diverse retail categories, including grocery, apparel, and electronics. Promotional strategies were categorized into four types: price discounts, buy-one-get-one (BOGO) offers, loyalty points, and experiential rewards. Statistical analyses, conducted using SPSS (Version 29.0) and AMOS (Version 29.0), included descriptive statistics, Independent Samples t-Test, One-Way ANOVA, Pearson correlation, multiple linear regression, and structural equation modeling. Results showed that discount-based promotions were associated with significantly higher loyalty scores compared to non-discount promotions, while loyalty points and experiential rewards outperformed BOGO offers in fostering loyalty. Emotional brand attachment demonstrated a strong positive correlation with loyalty and served as a significant mediator between promotional strategies and loyalty. The findings suggest that strategies creating emotional engagement, rather than purely monetary incentives, are more effective in sustaining long-term customer relationships. These insights have implications for marketing strategy design aimed at balancing short-term sales boosts with lasting brand connections.