Important only international corporations in Vietnam. Nevertheless, since 2000,

Important Results ? Non-price promotions have greater influence on subsequent consumer brand choice than price promotions for high involvement product. 2 DelVecchio, D., Henard, D. H., & Freling, T. H. (2006). The effect of sales promotion brand preference: A meta-analysis. Journal of Retailing, 82(3), 203–213 2 ?  Price-promotions are perceived to carry more utilitarian benefits than hedonic benefits. ?  “Premium offers”, a non-price promotion, could positively impact on brand loyalty for high involvement products. ?  “Discount”, a price promotion, could negatively impact on brand loyalty for low involvement products. ?  Involvement is a crucial antecedent of the loyalty level to a specific brand and has a positive relationship with it. Background and Justifications By 2000, few domestic Vietnamese companies knew and practiced marketing strategically; marketing activities were done by only international corporations in Vietnam. Nevertheless, since 2000, Vietnamese firms had started doing marketing for their products/services but still at a very simple level. Most marketing activities were above-the-line (ATL) activities. Almost 90% of total marketing budget spend for advertising on television, radio, newspaper and billboard. Whereas, below-the-line activities such as promotions, public relation, exhibition were given less effort and attention. However, the period 2000-2007 still was the milestone in Vietnam marketing history. With the hit of financial crisis in 2008 – 2009, almost all of Vietnam companies had to cut down marketing budget in order to survive the storm; only some “big guys” such as Unilever, Mobifone, Vinaphone and Tan Hiep Phat – a rising star in beverage industry were able to do television and online marketing. In the post-recession period, there was an obvious shift in marketing performance from mass marketing campaign deployment to differentiated marketing campaign focusing on the “effectiveness”. Marketers these days have been balancing ATL and BTL activities. Direct approach to end-users by communication at point-of-purchase or BTL activities, especially promotions are preferred.3 Moreover, lack of product differentiation and slow growth rate in demand for consumer products are possible explanations for the increasing need of sales promotions and the obstacle that prevents advertising to effectively reach consumers. 4