Sales Promotions and Brand Equity: The Moderating Role of Product Type

摘要

In research of the effect of promotion on brand equity, it remains unanswered of the differential influence of monetary and non-monetary promotion on brand equity. This study examines the differential influence of the monetary and non-monetary promotion on each dimension of brand equity, and explores the moderating role of product type with hedonic and utilitarian. Findings show that product type has a different moderating role in the effect of the monetary and non-monetary promotion on each dimension of brand equity. Specifically, monetary (vs. non-monetary) promotion has more effect on brand awareness; and it has a significant influence on brand awareness, perceived quality and brand loyalty of utilitarian products than the hedonic products, but it has no significant influence on the brand association. Non-monetary (vs. monetary) promotion has more effect on brand awareness, perceived quality, and brand loyalty; and it has a significant influence on the brand association, perceived quality and brand loyalty of hedonic products than the utilitarian products, but it has no significant influence on brand awareness. Finally, this paper includes a discussion of the theoretical findings, corresponding managerial suggestions, and future research directions.