Three Faces of Consumer Promotions Harvard Case Solution & Analysis

Sales promotions aimed at consumers (eg, coupons, sweepstakes, free offers) become large and growing proportion of marketing budgets worldwide. Provides a framework that examines the impact of management actions driven - in particular, the design and communication sales promotion - to increase incentives for different segments of consumers to purchase a product. Sales promotions are three different aspects: the economic aspect, which provides incentives and disincentives for the purchase of the brand, the information aspect that consumers use to make purchasing decisions, and affective aspects that influence how consumers feel about their commercial transaction as positive and negatively. As a promotional offer developed and transferred determines the value of information and its affective appeal, which then increases or decreases the attractiveness of the offer for the economic stimulus it provides. Companies' Strategies for moving to attempt to maximize the positive informative and emotional aspects, as this may reduce the need for large-scale economic stimulus and thereby increase the profitability of promotions. "Hide
by Priya Raghubir, J. Jeffrey Inman, Hans Grande Source: California Management Review 21 pages. Publication Date: August 1, 2004. Prod. #: CMR289-PDF-ENG

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