Lowe, B. and Barnes, B.R. (2012) Consumer perceptions of monetary and non-monetary introductory promotions for new products. Journal of Marketing Management, 28 (5-6). pp. 621-651. ISSN 0267-257X.
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Little research has examined how consumers respond to sales promotions in new product categories. This article fills this gap by integrating research on reference prices with literature on sales promotions for new product categories. Existing research suggests that consumers respond more favourably to non-monetary promotions (e.g. extra free promotions) than monetary promotions (e.g. price discounts) because non-monetary promotions are framed as segregated gains rather than reduced losses. However, both kinds of promotions are widely used in practice, suggesting the importance of other contributory factors. With a consumer experiment on a national panel of consumers, this research demonstrates that extra free product promotions are most preferred for existing products, and introductory low-price promotions are preferred for innovative products. The moderating effect of a product's innovativeness is explained via a new relationship in the marketing literature, whereby perceived risk mediates the relationship between perceived innovativeness and a consumer's tendency to stockpile.
|Uncontrolled keywords:||BOGOF, introductory low price, transaction value, perceived innovativeness|
|Subjects:||H Social Sciences > H Social Sciences (General)|
|Divisions:||Faculties > Social Sciences > Kent Business School > Marketing|
|Depositing User:||Kasia Senyszyn|
|Date Deposited:||17 Oct 2011 14:19|
|Last Modified:||04 May 2012 08:25|
|Resource URI:||http://kar.kent.ac.uk/id/eprint/28272 (The current URI for this page, for reference purposes)|
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