The effect of sales promotion on post-promotion brand preference: A meta-analysis

Abstract

The benefit of sales promotions is that they induce choice. However, this benefit may be offset by undermining preference for the brand when it is no longer promoted. Despite the fact that sales promotions have long been employed in marketing practice and researched academically, a clear understanding of the impact of sales promotion on post-promotion brand preference continues to evade brand managers and marketing scholars alike. This manuscript attempts to provide insight on the effects of sales promotions on brand preference by integrating results from 51 studies on the subject. Our meta-analysis suggests that, on average, sales promotions do not affect post-promotion brand preference. However, depending upon characteristic of the sales promotion and the promoted product, promotions can either increase or decrease preference for a brand. The empirical results provide insights for crafting promotion strategy and for understanding the process by which promotions influence brand preference.