http://www.google.com.tw/books?hl=zh-TW&lr=&id=hk5blApSmEgC&oi=fnd&pg=PA310&dq=product+and+sales+promotion&ots=w0qhVjasvb&sig=SmoAh79zPtZixsUwszFiTVQw5aA&redir_esc=y#v=onepage&q&f=true

Introduction

• 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)