The impact of price promotion on consumer-based brand equity
DOI:
https://doi.org/10.51359/2526-7884.2024.257819Keywords:
marketing, brand, price promotions, consumer-based brand equity, experimental surveyAbstract
The study examines the impact of price promotions (discounts and offers) on Consumer-based Brand Equity (CBBE). Through an experimental survey, it was evaluated whether the presence and intensity of price promotions would influence respondents' perceptions of brands. The survey also simultaneously evaluated the behavior of two different measurement methodologies: (1) Yoo and Donthu's (2001) methodology that measures cognitive and behavioral elements and (2) Vázquez, Río, and Iglésias (2002) methodology that measures Consumer-based Brand Equity based on two dimensions of brand utility: functional value and symbolic value. Among the main findings of this research, it can be highlighted that - contrary to the theoretical support - in this experiment, price promotion when applied in print ads did not generate a statistically significant impact on the overall average of Consumer-based Brand Equity or on its separate dimensions. The main managerial contribution of this research is the indication of evidence that price promotions, as short-term strategies, can continue to be one of the most commonly used sales promotion strategies without harming the brand value in the perception of the consumer.
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