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The purpose of this study is to resolve inconsistencies in the literature about how one-time price promotions affect reference prices. Specifically, this study suggests that the measure of reference price used within a study (e.g. expected price or fair price) can affect the outcomes of that study.

This research uses three separate experiments, replicating and extending existing work, to simulate purchasing decisions for products in the context of a price promotion. Experiments allow careful control of the confounds presumed to cause the inconsistencies between studies.

Study 1 shows that measurement of different reference prices within the same experiment leads to carryover effects, which inflate the correlation between measures. Expected price and fair price appear to be conceptually and empirically distinct and should be measured separately to reduce design artifacts. Study 2 shows that one-time price promotions affect fair price, but not expected price, and Study 3 shows expected price and fair price converge after multiple promotions.

Independent measurement of reference price concepts allows robust claims about their distinctiveness. These findings have implications for how reference price should be measured in survey research and for pricing and promotional strategy.

This research contributes by showing how the measure of reference price used affects the outcomes of price promotion studies. It does this through the replication and extension of past research. Replication allows greater confidence in the findings of past research, and testing the same findings under different conditions allows for the boundaries of existing research to be delimited and generalizations to be made.

This research seeks to examine differences in perceived shipping charge inflation associated with online promotions presented as reducing base product price, reducing shipping surcharge, or reducing all‐inclusive price and its impact on deal values for shipping charge skeptics and non‐skeptics.

Drawing from research on multi‐component pricing and mental accounting, a laboratory experiment investigates if shipping charge skeptics differ in their perceptions of shipping charge inflation for different presentations of online promotions from non‐skeptics, and if they differ in perceived deal value of economically equivalent promotions presented as reduced product price, reduced shipping charge promotion, or reduced all‐inclusive price for high and low priced items with small or large shipping fees at retail websites.

Analyses show that shipping charge skeptics differ from non‐skeptics in their perceptions of shipping charge inflation and deal values for different online promotions only when the surcharge is large relative to the base price. Reduced price promotions are most attractive for high‐priced items with low surcharge but least attractive for large surcharge sizes. For large surcharge sizes, shipping charge skeptics prefer reduced all‐inclusive price promotions to reduced shipping promotions, while non‐skeptics prefer reduced shipping promotions to reduced all‐inclusive price promotions.

The results suggest that the effectiveness of various promotion frames at online stores differ based on base price, surcharge size, and consumer skepticism of shipping charge. Robustness of the results obtained at different levels of discount sizes need investigation.

Online retailers that have to charge high shipping fees can use promotions to shift the referent price component used by consumers to calculate savings and mitigate perceptions of shipping or base price inflation. For equivalent dollar savings, retailers can use reduced shipping charge promotions to communicate higher deal values to shipping charge non‐skeptic consumers than reduced base price or reduced all‐inclusive promotions.

This research examines how consumer perceptions of deal values differ, even though objective savings and financial outlay is the same, when promotions are presented as reducing product price versus surcharge.

The purpose of this paper is to examine two key dimensions of in‐store marketing, namely in‐store promotions and price markdowns. These seem to be the two most important aspects of in‐store marketing, though other dimensions such as retail personal service are also worthy of study.

A sample of 287 New Zealand clothing and shoe retailers was studied. Survey questions included the perceived importance of in‐store promotions and price markdowns. The aim was to explain these perceptions in terms of marketing strategies, threat of competition and environmental uncertainty.

The results indicate that a discount marketing strategy, environmental uncertainty and emphasis on price‐promotions are key to explaining retailers' perceptions and use of specific in‐store marketing activities. In addition, seven key marketing activities were found to distinguish high‐ and low‐performance retailers with respect to in‐store promotions.

The study has highlighted strategic aspects of in‐store marketing, by focusing on two key components of in‐store marketing, namely in‐store promotion and price markdowns. The findings should provide much needed advice to retailers on the use of sales promotion tools in different environmental settings.

This paper should prove valuable to academic researchers and retailing managers (particularly to those in smaller countries), owner‐operated retail outlets, and chain stores.

This paper seeks to incorporate the study of the effect of price promotions into the traditional scheme of perceived price.

The model is validated with an empirical analysis and applied to the study of the purchase behavior of a tour package.

The results point out that price promotions directly and indirectly affect the formation process of perceived price. Thus, some differences are observed in the intensity of the above‐mentioned relationship according to the tendency of the consumer to seek advantageous prices. The results obtained might therefore be of great help to service managers in scheduling their promotional activities.

A theoretical model that captures the effect of promotions in the consumer's price perception is configured.

This study investigates how price, promotion and consumer characteristics affect consumer choice of high over medium- and low-equity cosmetic brand under different macroeconomic conditions.

The study uses purchase records from MarketingScan's Behaviour Scan panels (a GFK – Mediametrie Company) covering the period from 2008 to 2009. The panel analysed represents a sample of 2,149 households representative of the national population.

Results indicate that regular price and relative brand price increase high-equity cosmetic brand choice over both low- and medium-equity brands, while reference price decreases it. Brand feature promotion activity and joint promotion positively affect high-equity cosmetic brand choice, whereas display promotion decreases it. In comparison to medium-equity cosmetic brands, gender and education slightly increase high-equity cosmetic brand choice, while age decreases it. Surprisingly, household income does not affect high-equity cosmetic brand choice. The effect of regular price decreases over worsening macroeconomic conditions. However, the effect of relative brand price decreases between low and moderate contraction periods, but increases between moderate and high contraction times. Feature promotion is effective only when the contraction is moderate, while the negative effect of display promotion is stable over time.

The paper underlines the moderating role of macroeconomic conditions on the relationship between pricing decisions as well as promotion activity and consumer choice of high-equity cosmetic brands.

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

The main purpose of this paper is to examine consumer perceptions of “scratch and save” (SAS) promotions, which are popular store‐level promotional tools. This paper particularly focuses on investigating the moderating effects of consumers' price consciousness and savings expectations.

Two laboratory experimental studies were employed to examine consumer responses to SAS promotions.

The results of two experiments show that SAS promotions positively affect consumer perceptions of offer value and store prices, and consumers' intentions to shop and spread positive word‐of‐mouth. In particular, the effects of SAS promotions are moderated by consumer price consciousness and expected savings. Furthermore, the first study shows that the level of claimed savings of SAS promotions does not favorably affect consumer reactions. The second study also shows that consumers' discounting of expected savings increases as the level of claimed savings of SAS promotions increases.

Although SAS promotions are widely used by various types of retailers, there really is little known as to how consumers respond to SAS promotions. By providing evidence of the effectiveness of SAS promotions, this paper enables pricing researchers to extend issues related to such promotional tools.

For retailers, the most distinctive finding of this paper is that the level of claimed savings may not significantly affect consumer perceptions and shopping intentions, although an SAS promotion would be an effective promotional tool.

As a preliminary effort to examine the effects of SAS promotions, this paper offers a discussion of the future research opportunities.

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how framing quantity promotions as either a freebie (e.g. “buy 1, get 1 free”) or a price bundle (e.g. “buy 2, get 50% off”) influences inaction inertia. Relevant mediators are also identified.

Three experiments, two using imaginary scenarios and one using an incentive-compatible design, test the hypotheses.

Consumers who miss a freebie quantity promotion express higher inaction inertia than consumers who miss a price bundle promotion. The cause of this difference is higher perceived regret and greater devaluation that result from missing a superior freebie (vs price bundle) promotion.

Future research should examine how factors influencing perceived regret and devaluation moderate the quantity promotional frame effect on inaction inertia.

The findings provide insights into which quantity promotional frames practitioners should use to reduce inaction inertia.

This study's comprehensive theoretical framework predicts quantity promotional frame effects on inaction inertia and identifies relevant internal mechanisms. The findings are evidence that inaction inertia is caused by both perceived regret and devaluation in certain contexts. Furthermore, this study identifies the conditions in which a price bundle promotional frame is more beneficial than a freebie promotional frame.

This study evidences the influence that sales promotion has on brand choice behaviour. Establishments wish to influence consumers' buying behaviour, and thus they launch strong promotional campaigns or introduce changes in their price policies, among other actions. However, they are not always capable of achieving their goal, since, although they may reach their objective in the short term, when the longer term is considered there are undesirable consumer actions.

The problem of consumer brand choice can be adequately described with logit models that allow the use of discrete dependent variables. The probability that the consumer chooses a brand depends directly on the capacity of satisfaction that the brand holds for him/her. In this case, the dependent variable is the brand, and the independent variables are price, reference price, losses and gains, and the different types or techniques of sales promotion. With the aim of obtaining the necessary information for the present study, a regional consumer panel was used.

The results show that it is necessary to consider the product's promotional state at the moment of purchase as an explanatory element of the process. Promotion is a tool that can help manufacturers and/or retailers in the achievement of their objectives (try the brand, help to decide what brand to buy, etc.). Immediate price reduction is the technique that exerts greatest influence on the brand choice process. It is possible that the consumer perceives a promotion, for example, coupons or rebates, but does not modify his or her behaviour. In this case, manufacturers and/or retailers will be investing their resources in promotional actions that do not have any effect on the consumer.

Presents a regional consumer panel that has been elaborated and planned by the authors. Because of this, the information collected is just what was necessary for this study. On the other hand, the paper shows that is very important to know the consumer's preferences and the actions that influence his or her behaviour. Considering the results, it seems that promotions based on price have the greatest effectiveness.

This paper aims to propose models that capture the own effect of price promotions of virtue and vice products on sales and cross effects within the subcategory, between subcategories and between periods. The hypotheses assume that, due to reverse consumption self-control, the demand for vice products is more price-sensitive than demand for virtue products, but the demand for vice products is less price-sensitive between periods than demand for virtue products; furthermore, due to the degree of impulse-buying and to licensing, the demand sensitivity of the products of a subcategory and of those of other subcategories varies according to the type of promoted product (vice or virtue).

The methodology is based on different econometrical models that estimate the total net effect of price promotions of virtue and vice products on sales.

The results show a greater own effect for price promotions of vice products than for virtue products. However, the complementary sales effect between subcategories for virtue products facilitates greater expansion of the subcategory in virtue products than in vice products.

Although price promotions of virtue products (light) and vice products (regular) have proliferated in recent years, researchers have only estimated their own sales effect. Alternatively, the paper contributes by considering own and cross effects.