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

Although various types of price promotion are used to increase sales, they negatively may affect consumers' perceptions of a premium-product brand.

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

Felix Zoellner

BMW Group

Tobias Schaefers

TU Dortmund University

MANAGEMENT SLANT

  • Different price-promotion types have different influences on sales and brand perception in the premium automotive market.
  • Direct-price reduction has the strongest positive impact on sales numbers.
  • Price-promotion types with which the customer is not familiar may be harmful for the brand.
  • Management should focus on price-promotion types—with direct-price reduction— that also are familiar to the customer.

INTRODUCTION

Price promotion represents one of the instruments most frequently used by marketing and...

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