Predicting Premium Proneness

A premium is a free gift offered to consumers when they purchase a product, and marketers in many product categories are using them as a sales promotional tool.

Predicting Premium Proneness

Gerard P. Prendergast and Alex S. L. TsangHong Kong Baptist University

Derek T. Y. PoonHong Kong Productivity Council

Ting Yan FanInternational Coins (HK) Ltd


Sales promotion represents an important component of the marketing communications mix. Sales promotion tools are useful at all stages of the product life cycle, from encouraging trial to inducing brand switching to maintaining loyalty. They can also offer a quick surge in sales for marketing managers whose performance may be judged on whether or not they have achieved a sales increase within a short period of time....

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