As claimed by Kahn and McAlister,
brand awareness and brand loyalty are impossible to be built solely with
advertising. While promotions appear to be better at drawing consumer
attention, most research studies, however, have concentrated on price
Furthermore, in order to determine if the moderation impact of price or
non-price promotions is greater on the antecedents of brand loyalty such as
brand trust, brand reliability, and brand intentions, non-price promotions
should be also taken into account.2
Until the late 1900s that scholars began noticing non-price promotion.3
Besides the lack of non-price
promotions research, other studies share common drawbacks. For example, sales
promotions tended to be hindered by the deficiency of the theoretical approach.
Promotions was criticized for being too narrow that solely coped with one type
of promotion at a time. Behaviorists were criticized for confining empirical
work and choosing promotions theoretically.4
Finally, the long-term
effect of promotion activities has been debated for years.5
This debate may be due to the fact that most studies are on price promotions,
and while price
promotions are blamed to erode brand
equity because they emphasize on price1;
and uncommitted consumers are mostly economic incentives driven which leads to
promotion driven buying behaviors.2
Empirical studies indicate that promotions indirectly affect brand loyalty
through consumer satisfaction3.
However, other researchers believed that sales promotions would trigger
negative impact on brand such as price sensitivity4,
brand switching, and lower repeat purchase rates5.
The drawbacks and the inconsistency in previous research findings call for a
new empirical study involving both price and non-price promotions on the study
of relationship between them and brand loyalty.