To buy or not to buy, that is the question....
             (What Effects do Price Promotions have on Brand Loyalty?)
             This paper provides an overview of price promotion & brand loyalty; in addition to a review of subsequent research, evidence & analysis of the effect price promotions have on brand loyalty.
             Slow market growth and a lack of differentiation have resulted in a highly competitive environment in many product categories. This, in turn is forcing managers to use price promotions more frequently and engage in price wars. There is also concern among some marketers who feel that frequent promotions can hurt a brand, however evidence has shown to both support and dismiss such fears. Thus, there is little agreement regarding the effects of such intense promotional activity (Papatla & Krishnamurthi, 1996).
             Some managers consider promotions as "quick fix solutions that don't generate brand loyalty", others believe that promotions can be used to achieve permanent gains in market share provided they are well designed and well executed (Papatla & Krishnamurthi, 1996).
             The purpose of this paper will be to understand, through studies already conducted, which of these two opinions is closer to reality.
             The Collins Dictionary (1994) literally defines the word promote as "to encourage the progress or existence of". This similarly flows through to the marketing definition stated in Kotler (2003) as "a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade."
             Raju, Srinivasan & Lal (1990) alternatively describe price promotions as short term price cuts offered to consumers, where as Papatla & Krishnamurthi (1996) simply states that promotions are designed to directly influence behaviour. All of the literature reviewed agrees that price promotions are temporary, short term incentives. Ho...