Sales promotions effects on consumer-based brand equity

Research has traditionally posited that sales promotions erode brand equity. However, in current management practices, one may observe that companies design promotional programmes to differentiate and modernise their brand image and build brand awareness.
  

Sales Promotions Effects On Consumer-Based Brand Equity

Mariola Palazn-Vidal and Elena Delgado-Ballester University of Murcia, Spain

Introduction

Building a strong brand in the market is the current goal of many organisations. This is due to the fact that brand equity has been found to lead to higher prices (Firth 1993), greater market share (Park & Srinivasan 1994), more responsive advertising and promotions (Keller 1998), earlier market penetration (Robertson 1993) and more efficient product line extensions (Keller & Aaker 1992).

As a result it is not hard to understand why brand equity has...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands