Brand experience as a moderator of the negative impact of promotions

While price promotions are generally believed to have a positive impact on immediate sales, their effects on attitude towards repurchase, quality perceptions, and repurchase are far less clear. We present a study that tests the effect of brand experience in moderating the negative impact of promotions. The results of the laboratory study indicate that the negative impact of a discount on perceptions of quality and subsequent intent to purchase at full price is eliminated among those who had tried the brand. The moderation of the negative impact of promotions has not been previously shown to occur despite its prediction by a variety of behavioral theories.