Influence of two marketing controllables on the sale of branded and unbranded T-shirts

Abstract

Scope and Method of Study: A study to determine the influence of direct mail and point-of-purchase promotions with price differentials on the sale of branded and unbranded T-shirts. The study was conducted in a multiple-line clothing department store in Edmond, Oklahoma. The brands tested were Hanes and Jockey T-shirts, and the unbranded T-shirts consisted of Hanes and Jockey T-shirts with all brand differentiating labels removed. During Week One, all four brand classifications were the same price and no promotional methods were used. In Week Two, a direct mail letter sent to a selected sample of the store's credit customers was coordinated with a price reduction of the unbranded products. In Week Three, a point-of-purchase display promotion was coordinated with a price reduction of the unbranded T-shirts. The number of sales of each brand classification in each time period was recorded and tested for significance using chi-square analysis. The results were evaluated with respect to previous brand preference and brand loyalty research.

Findings and Conclusions: The comparison of results in Week Two and Three with the results in Week One revealed a significant amount of brand switching from Hanes and Jockey branded products. The Hanes unbranded product exhibited the largest increase in sales, although the Jockey unbranded sales also revealed an increase. Price appeared to be a major consideration of consumers, while secondary consideration was given to quality characteristics. The influence of the direct mail promotion appeared greater than that of the point-of-purchase display promotion and suggested that brand loyalty tendencies toward Hanes and Jockey branded T-shirts were low.