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Page history last edited by Bobo You 11 years, 3 months ago





  • Sales promotion include price discounts, feature advertising, special displays, trade deals, reward programs, coupons, rebates, contests, and sweepstakes.


  • However, they tap into and induce important psychological processes in the consumer, as well as significant competitive response.


  • It can be defined as an 'action-oriented marketing event whose purpose is to have a direct impact on the behavior of the firm's customers' (Blattberg & Neslim, 1990) 


Theoretical Framework

  • Price discrimination means selling 'the same physical good at different prices, either to the same consumer or different consumers' (Tirole, 1988)


  • The strategy behind price discrimination is to increase profits by selling the product at a higher price to consumers who are willing to pay more, and a lower price to consumers who are willing to pay less. (Farris& Quelch, 1987) 

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