Isolating Price Promotions: The Influence of Promotional Timing on Promotion Redemption

This research investigates how the timing of the promotional encounter, whether consumers encounter a promotion in isolation or at the moment of choice alongside other products, influences how consumers evaluate and redeem a promotional offer. Three studies demonstrate that isolated promotions for premium brands are more effective than traditional shelf promotions in persuading consumers to purchase the promoted product as these promotions alter how consumers evaluate and justify purchasing the promoted products. Specifically, isolated promotions lead consumers to focus relatively less on the price of the promoted product compared to its quality. This reduced focus on price assuages the negative effect of guilt associated with purchasing a more expensive, premium brand. These findings offer insights into consumer response to promotions, the most effective timing for promotions, and the best ways to optimize promotional strategies.