Do Price Promotions Help or Hurt Premium-product Brands? The Impact of Different Price-promotion Types on Sales and Brand Perception

Felix Zoellner, Tobias Schaefers

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Although various types of price promotion are used to increase sales, they negatively may affect consumers' perceptions of a premium-product brand. The authors of this study believe their work advances the limited research in this area by distinguishing between direct- versus indirect-price reduction and marketers' use of a "precondition"—i.e., promotions offering free gifts, trade-in incentives, or loyalty-program benefits. Results of this two-part study, which combined sales data of German premium automobile brands with consumer-behavior analysis, showed that direct-price reduction had the strongest positive sales impact. Brand perception was least deteriorated by both direct-price reduction without a precondition—and indirect-price reduction with a precondition.
Original languageEnglish
JournalJournal of Advertising Research
Volume55
Issue number3
Pages (from-to)270-283
Number of pages14
ISSN0021-8499
DOIs
Publication statusPublished - 2015
Externally publishedYes

Cite this

@article{84da7ff9e2c74a20a7072637a61f0f03,
title = "Do Price Promotions Help or Hurt Premium-product Brands?: The Impact of Different Price-promotion Types on Sales and Brand Perception",
abstract = "Although various types of price promotion are used to increase sales, they negatively may affect consumers' perceptions of a premium-product brand. The authors of this study believe their work advances the limited research in this area by distinguishing between direct- versus indirect-price reduction and marketers' use of a {"}precondition{"}—i.e., promotions offering free gifts, trade-in incentives, or loyalty-program benefits. Results of this two-part study, which combined sales data of German premium automobile brands with consumer-behavior analysis, showed that direct-price reduction had the strongest positive sales impact. Brand perception was least deteriorated by both direct-price reduction without a precondition—and indirect-price reduction with a precondition.",
author = "Felix Zoellner and Tobias Schaefers",
year = "2015",
doi = "10.2501/JAR-2015-008",
language = "English",
volume = "55",
pages = "270--283",
journal = "Journal of Advertising Research",
issn = "0021-8499",
publisher = "World Advertising Research Center",
number = "3",

}

Do Price Promotions Help or Hurt Premium-product Brands? The Impact of Different Price-promotion Types on Sales and Brand Perception. / Zoellner, Felix; Schaefers, Tobias.

In: Journal of Advertising Research, Vol. 55, No. 3, 2015, p. 270-283.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Do Price Promotions Help or Hurt Premium-product Brands?

T2 - The Impact of Different Price-promotion Types on Sales and Brand Perception

AU - Zoellner, Felix

AU - Schaefers, Tobias

PY - 2015

Y1 - 2015

N2 - Although various types of price promotion are used to increase sales, they negatively may affect consumers' perceptions of a premium-product brand. The authors of this study believe their work advances the limited research in this area by distinguishing between direct- versus indirect-price reduction and marketers' use of a "precondition"—i.e., promotions offering free gifts, trade-in incentives, or loyalty-program benefits. Results of this two-part study, which combined sales data of German premium automobile brands with consumer-behavior analysis, showed that direct-price reduction had the strongest positive sales impact. Brand perception was least deteriorated by both direct-price reduction without a precondition—and indirect-price reduction with a precondition.

AB - Although various types of price promotion are used to increase sales, they negatively may affect consumers' perceptions of a premium-product brand. The authors of this study believe their work advances the limited research in this area by distinguishing between direct- versus indirect-price reduction and marketers' use of a "precondition"—i.e., promotions offering free gifts, trade-in incentives, or loyalty-program benefits. Results of this two-part study, which combined sales data of German premium automobile brands with consumer-behavior analysis, showed that direct-price reduction had the strongest positive sales impact. Brand perception was least deteriorated by both direct-price reduction without a precondition—and indirect-price reduction with a precondition.

UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954921347245&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes

U2 - 10.2501/JAR-2015-008

DO - 10.2501/JAR-2015-008

M3 - Journal article

AN - SCOPUS:84957062771

VL - 55

SP - 270

EP - 283

JO - Journal of Advertising Research

JF - Journal of Advertising Research

SN - 0021-8499

IS - 3

ER -