The Effect of Price Promotions on Repeat Purchase Behavior |
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Abstract: | Abstract While there is general agreement that price promotions generally have an immediate positive impact on the sales of consumer nondurables, there is little agreement about their repeat-purchasing effects. Promotion usage effects may exist in which brand repurchase rates are negatively affected by the fact that a promotion was used to make a purchase. Using scanner data, this study examines the effect of price promotions on brand repurchase rates in four product categories. Findings indicate that repurchase rates are generally higher after non-deal purchases, however, this seems largely attributable to differences in household pre-purchase probabilities. |
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