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Retailers are constantly striving to optimize the effectiveness of their sales promotions. Therefore, they need to know in which setting their marketing dollars will generate the most sales. First, this thesis will assess the effectiveness of a multibuy promotion based on the change in consumers’ purchase intentions as purchase intentions predict sales. Moreover, this thesis examines two possible moderators of promotion effectiveness, namely retail crowding and store type. The results of a multiple linear regression and a two-way ANOVA revealed a significant positive effect of a multibuy on consumers’ purchase intentions, implying that a multibuy is an effective sales promotion. Next, it is concluded that retail crowding does not play an important moderating role in the relationship of a multibuy with consumers’ purchase intentions. Finally, the results indicated a significant interaction effect between a multibuy and store type. This means that store type has a significant moderating effect on promotion effectiveness. A multibuy is found to be more effective in a discounter compared to a traditional retailer.