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The defense date of the thesis is 2004-09-02
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URN etd-0902104-232318 Statistics This thesis had been viewed 2311 times. Download 16 times. Author Man-ling Chen Author's Email Address No Public. Department Management Business Administration Year 2003 Semester 2 Degree Master Type of Document Master's Thesis Language English Page Count 112 Title CONSUMER EVALUATIONS OF DIFFERENT PROMOTION TYPES AND PRICE PRESENTATIONS: THE MODERATING ROLE OF BRAND MARKET SHARE Keyword promotion types price presentations consumer evaluations brand market shares brand market shares consumer evaluations price presentations promotion types Abstract Spending on sales promotions continues to be a large part of the marketing communication expenditures for many firms. These promotions are used to enhance consumer perceptions of value. Since price discounts have traditionally been the dominant form of consumer promotion, consumers are aware of and often expect price deals and therefore simply lowering prices is often problematic.
Many studies have shown that the effect of monetary promotion is temporary and deleterious for the image of products. Using monetary promotion in the long run, the firms may produce price wars and slender profits. Moreover, monetary promotion is their heavy burden for small and medium sized enterprises (SMEs). Alternatively, bonus packs avoid the effects associated with direct price competition. Therefore, an understanding of the conditions under which consumers value each type of promotion should be of interest to both retailers and manufacturers. Furthermore, establishing when consumers prefer price promotions framed in dollar versus percentage terms would provide important guidance for many retail decisions.
The effects of promotion type (i.e., price discounts and bonus packs) and price presentation (i.e., dollars and percentages) across a broader range of brands with varying market shares were investigated in the experimental study. The results suggest, for the products considered, that promotions presented in percentage terms and in dollar terms valued similarly for both low and high brand market shares. Additionally, price discounts were preferred when brand market shares were high while bonus packs were preferred when brand market shares were low. The implications of these results for retailers and manufacturers are that that bonus packs are a viable alternative to price discounts when brand market shares are small since price discounts have less of a deleterious effect on the brand.
Advisor Committee Ming-chuan Pan - advisor
Hao-erl Yang - co-chair
Wen-chueh Hsieh - co-chair
Files Date of Defense 2004-07-21 Date of Submission 2004-09-02