Research Summary
Research Summary
Utilizing Display, Feature and Price Promotions: Getting the Biggest Bang for the Buck
Description
Firms are continuously looking for more efficient ways to influence consumers to purchase their brand. Professor Lemon is conducting research to understand what motivates consumers' purchases of products and services. Her research suggests new strategies for category management in terms of moving the most product in a category at the most profitable levels. The research shows that the current strategy of doubling up display and price promotion may not always be optimal. The magnitude of the promotion effect will depend upon whether the brand in question is perceived as a high price/high quality brand or a low price/low quality brand. The findings suggest that retailers and direct marketers can increase the likelihood that a low-tier brand is chosen (or in contrast, decrease its likelihood of being chosen) through strategic product display and placement in the store, on the printed page, or on the web site.