The Moderating Effect of Loyalty on the Relationship of Sales Promotions and Brand Equity

Sales promotions are used very widely in the market, despite the conflicting research findings that they erode brand equity. This paper explains reasons for this increased spend by investigating the role of brand loyalty in the relationship of promotions and brand equity. Findings indicate that brand equity is different for customer segments with differing levels of loyalty, and that even non-CFB promotions support brand equity in certain market segments (like those dominated by spurious loyal customers). The paper ends by highlighting the need of loyalty-based segmentation of markets.



Citation:

Joshy Joseph and Bharadhwaj Sivakumaran (2009) ,"The Moderating Effect of Loyalty on the Relationship of Sales Promotions and Brand Equity", in AP - Asia-Pacific Advances in Consumer Research Volume 8, eds. Sridhar Samu, Rajiv Vaidyanathan, and Dipankar Chakravarti, Duluth, MN : Association for Consumer Research, Pages: 263-264.

Authors

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



Volume

AP - Asia-Pacific Advances in Consumer Research Volume 8 | 2009



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