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When do price promotions affect pre-trial brand evaluations?

Authors Raghubir, Priya
Corfman, Kim
Issue Date 1996-12-20
Summary In this paper we investigate the conditions under which price promotions affect pre-trial brand evaluations. Three laboratory studies within the context of a price promotion designed to increase trial in a service industry are described. Results suggest that consistency with past promotional behavior, perceptions of how common it is to promote in an industry, and consumer expertise are important variables moderating when price promotions have an unfavorable effect on brand evaluations. Managerial implications for service providers offering promotions to attract new customers in industries where promotions are uncommon are offered, and theoretical implications for the importance of expertise moderating the effects of distinctiveness and consistency in the context of price promotions are discussed.
Language English
Format Working paper
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