Do Sales Promotions Necessarily Erode Brand Equity? Maybe Not

The ratio of advertisements to sales promotion in the IMC budget, which was heavily skewed towards ads earlier, has now shifted towards promotions despite the research evidence that promotions erode brand equity. This widespread usage of sales promotions by the industry, despite the conflicting research findings forms the background for this paper. The study finds that under certain situations (high involvement/deal proneness and at high levels of advertising support), even non CFB promotions (e.g. discounts) help in improving brand equity. Thus the rise in promotional budgets could be attributed to these factors being present in several product markets.



Citation:

Joshy Joseph and Sivakumaran Bharadhwaj (2008) ,"Do Sales Promotions Necessarily Erode Brand Equity? Maybe Not", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 823-823.

Authors

Joshy Joseph, Indian Institute of Technology Madras, India
Sivakumaran Bharadhwaj, Indian Institute of Technology Madras, India



Volume

NA - Advances in Consumer Research Volume 35 | 2008



Share Proceeding

Featured papers

See More

Featured

Willingness to Pay: A Contextualized Method of Valuation

Sharlene He, Concordia University, Canada
Eric T. Anderson, Northwestern University, USA
Derek Rucker, Northwestern University, USA

Read More

Featured

Less Time, More Procrastination? The Impact of Time Pressure on Task Initiation

Jing Jiang, Renmin University of China
Alisa Yinghao Wu, Columbia University, USA

Read More

Featured

Understanding the Framing of Recommendations

Jia Gai, Erasmus University Rotterdam, The Netherlands
Anne-Kathrin Klesse, Erasmus University Rotterdam, The Netherlands

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.