Pricing and promotion: A literature review

Abstract

Thisarticle intends to carry out a systematic review of the literature on pricing and promotion, as variables that impact profitability in organizations. To achieve this purpose, a systematic review was performed upon the most relevant academic journals (according to Scimago and Country Rank), for the period between 2018 and 2020. The article puts into evidence the correlation between pricing and promotion, as well as the different price-promotion tactics employed by organizations (including coupons, free samples, loyalty programs, discounts and cross selling, among other practices). An array of external factors was also found that affected pricing and promotion performance, making the study more complex. Therefore, despite the correlation existing between the variables at issue, it can be concluded that the success of a price-promotion strategy does not depend exclusively upon itself, but that the results of a monetary discount can be affected by multiple environmental phenomena. Finally, the text concludes with a presentation of certain endogenous factors that can impact the results of price-promotion strategies.