Analysing The Impact Of Price Promotions Versus No-Price Promotions On Brand Image

Abstract

Companies are increasingly designing more promotional actions to obtain better sales rates in the short term.  However, the indiscriminate use of this tool has a negative effect for the organisations in the middle and long term.  The purpose of this paper is to analyse if the frequent use of promotions has a negative effect on the promoted brand image.  More exactly we have studied how different promotional tools may affect the image that consumers have on two brands and also if the category of the promoted product has any influence on that effect.  Considering the data obtained in an experiment we have demonstrated that the effect of promotions on brand image depends on the type of promotional tool and the product category.