TY - JOUR T1 - Do Price Promotions Help or Hurt Premium-Product Brands? JF - Journal of Advertising Research JO - J Advert Res SP - 270 LP - 283 DO - 10.2501/JAR-2015-008 VL - 55 IS - 3 AU - Felix Zoellner AU - Tobias Schaefers Y1 - 2015/09/01 UR - http://www.journalofadvertisingresearch.com/content/55/3/270.abstract N2 - 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. ER -