A longitudinal test of price effects on brand choice behavior

The introduction and withdrawal of marketing variable inputs at various intervals of time and the subsequent observation of their impact on buyer behavior provide an invaluable aid as to how certain promotional changes work. Results of the present longitudinal experiment using a consumer panel of 133 households provide further evidence that for artificial brands, penetration and repeat buying can be influenced significantly by the introduction and retraction of a substantial price reduction. Yet, the effects on penetration are consistently greater than the effects on repeat buying. After-effects appear negligible. These results generally confirm prior research findings.