Abstract
AbstractThis study investigated the effects of price promotions on consumers’ brand affect. Given the inconsistent findings in previous research, it is proposed that the effects of price promotion depend on two moderator variables: brand image and consumer loyalty. For high loyalty consumers of a prestigious brand, price incentive incompatible with the brand image can hurt the brand affect. When a non‐prestigious brand is involved, brand affect is positively influenced. However, these effects are limited to high loyalty consumers only. There was no effect on low loyalty consumers. In a longitudinal study of the Taiwanese market using emails, these hypotheses were tested and supported.
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