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


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
Issue number3
Pages (from-to)270-283
Number of pages14
Publication statusPublished - 2015
Externally publishedYes

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