Every retailer knows the drill: slash prices, run a promotion, and hope customers show up. But which types of sales promotions actually work on younger consumers, and why? The answer is not as straightforward as “just make it cheaper.” A study published in the Brazilian Journal of Marketing surveyed 564 millennials across 24 nationalities to find out which perceived benefits of sales promotions are most closely linked to their intention to buy. The results suggest that only a handful of the commonly assumed benefits actually matter to this generation.
A gap in what we know about millennial shoppers
The research was led by Inês Antunes, affiliated with the Nova School of Business and Economics at Universidade Nova de Lisboa in Portugal, along with co-authors Luisa M. Martinez of the European University (Universidade Europeia) and Luis F. Martinez, also of Nova School of Business and Economics. The team set out to investigate a specific gap in the marketing literature: while previous studies had examined how sales promotions influence buying behavior in general, relatively little work had explored how millennials specifically perceive the different types of benefits that promotions offer, and whether those perceptions actually drive purchase decisions.
Before diving into the study design, it helps to understand a few key concepts. In marketing research, the benefits consumers get from sales promotions are often sorted into two broad categories. The first is “utilitarian” benefits, which are practical and functional. Think of saving money, getting a higher-quality product for less, or having an easier time finding what you need. The second category is “hedonic” benefits, which are more emotional and experiential. These include feeling like a smart shopper, being entertained by a contest or sweepstakes, or discovering new products. A well-known framework developed by researchers Chandon, Wansink, and Laurent in 2000 breaks these two categories into six specific dimensions: monetary savings, quality, and convenience on the utilitarian side; and value-expression, entertainment, and exploration on the hedonic side.
The researchers also wanted to test the role of word-of-mouth, often abbreviated as WOM. WOM refers to any informal communication, positive or negative, from one consumer to another about a product, service, or brand. Previous research has shown that millennials, defined in this study as people born between 1982 and 2000, rely heavily on the opinions and recommendations of others before making purchases.
How the study was designed
The team collected data through a survey questionnaire distributed to a convenience sample of millennials. A convenience sample means participants were selected based on availability rather than random selection, which is a common approach in consumer research but limits how broadly the findings can be applied. In total, 577 people responded, and after removing incomplete responses, 564 valid questionnaires remained.
The sample skewed young and female. About 57.6% of respondents were between 17 and 20 years old, 35.3% were between 21 and 25, and 7.1% were between 26 and 35. Women made up 66.7% of respondents. The vast majority, 91.3%, were from Portugal, with the rest coming from other European countries or elsewhere. Nearly 89% were students.
The survey asked participants about their attitudes, opinions, and shopping habits related to promotions. The six benefit dimensions from the Chandon framework were each measured using three statements rated on a five-point Likert scale, where 1 meant “strongly disagree” and 5 meant “strongly agree.” WOM was measured using three personally developed statements on the same scale. Purchase intention, the outcome the researchers were trying to predict, was also measured with three Likert-scale items drawn from prior research.
To analyze the data, the team used a statistical technique called Structural Equation Modeling, or SEM. SEM is a method that allows researchers to test multiple relationships between variables at the same time. It examines how well a proposed theoretical model fits the actual data collected from survey responses. The researchers first verified that their survey questions reliably measured what they were supposed to measure, then tested whether each of the six benefit dimensions and WOM were statistically linked to purchase intention.
What the numbers revealed
Of the seven hypothesized relationships, only three were supported by the data. The perception of monetary savings had the strongest positive association with purchase intention. In simpler terms, when millennials felt a promotion helped them save money, they were more likely to say they intended to buy the product. The perception of value-expression also showed a significant positive association, meaning that when millennials felt a deal made them look or feel like smart shoppers, they were more inclined to buy. And WOM was linked to purchase intention as well: when millennials heard positive opinions from others about a deal, they reported a greater willingness to purchase.
The other four hypothesized relationships did not hold up. The perception of higher product quality, improved shopping convenience, entertainment, and exploration were not significantly associated with millennials’ purchase intentions. In other words, the idea that a promotion might let you upgrade to a better brand, make shopping easier, entertain you through a contest, or help you discover new products did not appear to move the needle for this group.
The model as a whole explained about 36.1% of the variation in purchase intention, meaning the seven tested variables collectively accounted for roughly a third of what drives millennials’ stated likelihood to buy products on sale.
Preferred promotion types
Beyond the statistical model, the survey also asked millennials which sales promotion techniques they preferred. Price reductions scored highest, with an average rating of 4.19 out of 5. Product samples came in second at 3.02. The least preferred techniques were sweepstakes and contests (2.23) and loyalty reward programs (2.59). This pattern aligns with the model’s findings: millennials gravitate toward promotions that offer clear, immediate monetary value rather than those built around chance, fun, or long-term reward accumulation.
What this means for businesses
For marketers and managers, these findings point to a few practical takeaways. First, when targeting millennial consumers, promotions centered on direct financial savings appear to be the most effective tool. Price reductions, rebates, and similar monetary incentives seem to resonate most strongly with this audience. Second, framing a promotion so that it makes the buyer feel shrewd or savvy could add further pull. The value-expression benefit, the feeling of being a “smart shopper,” was one of only two benefit types with a significant link to buying intention.
Third, the results highlight the continued relevance of word-of-mouth. Businesses looking to reach millennials may benefit from encouraging satisfied customers to share their positive experiences, whether through referral programs, social media engagement, or other channels. The researchers noted that future work should explore electronic word-of-mouth specifically, since millennials spend significant time on social media and online review platforms.
Interestingly, the study suggests that the promise of upgrading to higher-quality products through a promotion does not appear to motivate millennial buyers. The researchers speculate that millennials might actually interpret promotions as a signal that a product is lower quality, or that upgrading could still mean spending more money than they are comfortable with. Either way, marketing messages built around “get a better brand for less” may not land with this demographic as effectively as a straightforward “save money” pitch.
Important caveats to keep in mind
Several limitations are worth noting. The sample was predominantly Portuguese, female, and composed of students, which means the findings may not generalize to millennials in other countries, with different income levels, or in different life stages. A convenience sample also means the participants were not randomly selected, so the results could reflect the particular characteristics of the people who chose to respond.
The study relied on self-reported purchase intentions rather than actual purchasing behavior. There is a well-documented gap in consumer research between what people say they will do and what they actually do. Additionally, this was a cross-sectional study, meaning it captured a snapshot in time rather than tracking behavior over a longer period. The researchers acknowledged that a longitudinal design could reveal how promotional preferences shift as consumers age or as market conditions change.
Finally, because this was a survey-based study and not an experiment where variables were manipulated, the findings show associations rather than cause-and-effect relationships. We can say that the perception of monetary savings was linked to higher purchase intention among this group, but we cannot conclude from this study alone that emphasizing savings will directly cause more purchases.
Despite these limitations, the study adds a piece to the ongoing puzzle of understanding what drives younger consumers to act on promotions. For businesses allocating limited marketing budgets, the message is relatively clear: for this demographic, keep it simple, keep it about the savings, and let word-of-mouth do some of the heavy lifting.
