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The Effects of Price Promotions on New and Mature Products

  • Sunhee Choi*
  • , Wesley Friske
  • , Sangno Lee
  • , James Wilcox
  • *Corresponding author for this work
  • Shippensburg University
  • Texas Tech University

Research output: Contribution to conferenceChapterpeer-review

Abstract

Although the effects of price promotion depth on mature product sales volume and sales revenue are well known, empirical studies on the long-term effects of price promotions are relatively scarce. This study examines the impact of promotion depth on units sold and dollar sales for a 106-weeks period. Using learning theory as a framework, the study also examines the effects of price promotions on new and mature products. Our results indicate that promotion depth is negatively associated with brand extension sales. We address the theoretical and managerial implications of this surprising finding in the final sections of the paper.

Original languageEnglish
Title of host publicationDevelopments in Marketing Science
Subtitle of host publicationProceedings of the Academy of Marketing Science
PublisherSpringer Nature
Pages32
Number of pages1
DOIs
StatePublished - 2015

Publication series

NameDevelopments in Marketing Science: Proceedings of the Academy of Marketing Science
ISSN (Print)2363-6165
ISSN (Electronic)2363-6173

Quacquarelli Symonds(QS) Subject Topics

  • Business & Management Studies
  • Marketing

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