Promotions, coupons, discounts, and deals. You find them everywhere. Brands are perennially faced with the decision of whether to offer discounts, when to offer discounts, and to whom to offer discounts. Offering deals and discounts can be a powerful means of driving customer loyalty and customer purchase. But, if used unsystematically, they can also drain a company’s valuable resources and reduce its profitability.
We frequently read reports of Asian consumers queuing for all sorts of sale items. Adidas in Ion Orchard (Singapore) offered a 50% discountfor all women apparels to celebrate International Women’s Day and this led to...