The impact of discounting strategies on brand equity in the clothing market from the customer's perspective

Extended Abstract
Introduction: If a customer is largely convenience-driven, price reductions might have no impact on that person. Alternatively, if the customer is largely price-driven, a price reduction could have a significant impact on that person’s purchase behavior. Low prices could drive some category enthusiasts to try a new product or brand, while price reductions may have little to no impact on brand loyal customers. Again, the relationships between price, perceived value, brand equity and sales are not always linear and cannot be solved by just one simple equation. Success in an increasingly competitive online industry, giving an overview to online industry players can offer the right products to consumers, with the best services, discounted prices and those who are famous. Therefore, there needs to be an understanding of the target market or consumers to be served because it is very important in increasing business activities. Increasingly tight business competition now results in companies being faced with the challenge of being able to maintain survival. Brand equity creation has long been an important subject in brand management. Brand equity refers to the differential consumer response, assets, or liabilities associated with a brand and a source of competitive advantage to survive in intense competition. The shift in marketing paradigm towards a service-dominant logic of exchange processes and relationships supports the wider need to build a brand that focuses on customer experience and perceived value.  In addition, discounting strategies can have a great impact on brand equity from the customer's perspective in the apparel market. These strategies can help increase brand equity by increasing sales, attracting new customers, retaining existing customers, and increasing brand awareness. Despite this, there is very little research in this area. The present study was conducted with the aim of investigating the impact of discounting strategies on brand equity from the customer's point of view in the clothing market.
Methodology: This study was of applied purpose type and in terms of descriptive survey method. The demographic group for this study is brand customers; Sark brand, Iranian body spinner brand, Tulika brand, Patten Jammeh brand, Tan Derest brand, Hakopian brand, LC Man brand, etc. This population is an unlimited statistical population; therefore, the sample size of 384 people was determined by using the unlimited statistical population formula. Data were collected using standard questionnaires, whose validity and reliability were checked and confirmed using face validity and Cronbach's alpha coefficient. Data analysis was done using structural equation modeling. The partial least square structural equation model (PLS-SEM) was used to analyze the data. PLS-SEM is suitable for building exploratory theory studies that identify the drivers of a construct. Finally, the current study adopted Kaiser, Mayer and Olkin's sampling adequacy criterion and Bartlett's test regarding the appropriateness of the sample size for factor analysis. The amount of sig was calculated to be less than 5% and the KMO index was 0.745, and the number for this index shows the adequacy of sampling to perform exploratory factor analysis.
Discussion and Results: The findings of this research show that volume discounts, end-of-term discounts, next purchase discounts and promotional discounts have a positive effect on brand equity (p<0.05), but the effect of seasonal discounts on brand equity was not significant (p>0.05). As a result, it was found that discounting strategies can improve brand equity through various volume discounts, end of term and next purchase.
Conclusion: The findings of this study are unique and contribute to both pricing and branding areas of research. While extant research in these areas has focused on price fairness perceptions in situations where the price of future purchases increases, particularly for frequently purchased non-durable goods. Also, it was also concluded that the time constraint and the size of the discount influenced the consumer's willingness to purchase a product on sale. When those effects are compared in terms of the brands, the effect of discount size varies for two different brands but the effect of time constraint on the customer's willingness to purchase does not change depending on the brand. Previously, brand equity, perceived luxuriousness, discount size, and time constraint have been discussed in previous marketing researches in terms of the effectiveness of sales promotions. When these factors are taken into consideration as a whole, it can be said that this study offers a new approach. Finally, Promotional discounts can have a significant impact on brand equity. Brand equity is measured by the degree of direct connection and connection between the brand and the consumer. Promotional discounts can be provocative and create a closer connection between the consumer and the brand. This helps increase brand equity because increased interactions with the consumer can lead to increased brand awareness and increased consumer loyalty.