The After-Effects of Price-Related Consumer Promotions

Prof Andrew S C Ehrenberg, Kathy Hammond and G J Goodhardt

An international study of leading grocery brands has shown that price promotions generally did not affect a brand's subsequent sales or brand loyalty.

The After-Effects of Price-Related Consumer Promotions

Andrew S C Ehrenberg, Kathy Hammond and G J Goodhardt

An international study of leading grocery brands has shown that price promotions generally did not affect a brand's subsequent sales or brand loyalty. This was because the extra short-term buyers during the promotion had almost all bought the promoted brand before, rather than that new buyers were being attracted. Management implications point toward reduced rather than increased spending on price-related promotions.

We report here on an extensive international study of the after-effects of price-related consumer promotions for leading...

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