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Publication date: 19 November 2012

Takaho Ueda

This paper introduces the development of a new type of sales promotion strategy to create more value for goods and to avoid price discounting. I use a psychological approach…

Abstract

This paper introduces the development of a new type of sales promotion strategy to create more value for goods and to avoid price discounting. I use a psychological approach designed by creating consumer insight hypotheses based on in-depth interviews, which are then verified by web-motivation research and text-mining. This innovative sales promotion approach is a very hot topic as a new type of promotion development among large companies in Japan and is useful in avoiding price-discounting sales. This paper explains the concrete process used in this type of promotion and reveals the successful case of a large spice company in Japan. The process uses price sensitivity measurement (PSM) as a pricing technique. In the experiment, conducted in nine retail stores, the most successful sales promotion condition saw an increase of 900% in monetary sales without price discounting during the two weeks of the experiment, and 500% in the two weeks after that.

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Visionary Pricing: Reflections and Advances in Honor of Dan Nimer
Type: Book
ISBN: 978-1-78052-996-7

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Gang Entry and Exit in Cape Town
Type: Book
ISBN: 978-1-83909-731-7

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