The effect of promotion type and benefit congruency on brand image

Abstract

Sales promotion is a communication device increasingly used by companies due to its capacity to produce an immediate sales increase. However, although these activities generate good short-term results, they may also have side effects on the customers' assessment of the promoted brands. The purpose of this paper is to delve into the effects of promotions on the expected product price and brand image. The results of the study reveal that the frequent use of promotions affect consumers' evaluations of brand image, but the effect depends on the type of promotional tool and the product category. The frequent use of price promotions will lower brand image assessments whereas non-monetary promotions lead to higher brand evaluations. These results are moderated by the product category. Moreover, the expected price of a product is lower after frequent monetary promotions.