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.