PT  - JOURNAL ARTICLE
AU  - Felix Zoellner
AU  - Tobias Schaefers
TI  - Do Price Promotions Help or Hurt Premium-Product Brands?
AID  - 10.2501/JAR-2015-008
DP  - 2015 Sep 01
TA  - Journal of Advertising Research
PG  - 270--283
VI  - 55
IP  - 3
4099  - http://www.journalofadvertisingresearch.com/content/55/3/270.short
4100  - http://www.journalofadvertisingresearch.com/content/55/3/270.full
SO  - J Advert Res2015 Sep 01; 55
AB  - Although various types of price promotion are used to increase sales, they negatively may affect consumers' perceptions of a premium-product brand. The authors of this study believe their work advances the limited research in this area by distinguishing between direct- versus indirect-price reduction and marketers' use of a “precondition”—i.e., promotions offering free gifts, trade-in incentives, or loyalty-program benefits. Results of this two-part study, which combined sales data of German premium automobile brands with consumer-behavior analysis, showed that direct-price reduction had the strongest positive sales impact. Brand perception was least deteriorated by both direct-price reduction without a precondition—and indirect-price reduction with a precondition.