IMPACT OF CONSUMER PROMOTIONS ON CUSTOMER-BASED BRAND EQUITY

Authors

Keywords
consumer promotions, monetary and non-monetary promotions, promotion frequency, customer-based brand equity dimensions, structural equation modelling

Summary
The present research paper outlines the effects of consumer promotions. Its subject is the type and frequency of effects of consumer promotions on customer-based brand equity dimensions. The leading role of consumer promotions within the communication mix, both nationally and globally, along with the lack of unambiguous evidence about their effect on brand equity as a top intangible asset, underlie the motivation of the current research. The present work aims to confirm the research thesis that consumer promotions can generate both positive and negative effects on customer-based brand equity depending on their type and frequency. The negative effects of monetary promotions, the positive effects of non-monetary promotions and promotions frequency on perceived quality and brand loyalty are estimated by structural equation modelling and finite mixture approach. The segmentation analysis provides estimates of the effects according to the degree of brand loyalty. According to the results, monetary promotions are more appropriate for the non-loyal segment, while non-monetary promotions are more appropriate for the loyal segment.

JEL: M31
Pages: 28
Price: 3 Points

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