The impact of monetary and non-monetary promotions on the brand equity of new and mature products

Abstract

Promotions can be a very important tool for retailers and manufacturers to become competitive, when used in the correct way. Particularly when introducing a new brand in the market it is crucial to be aware of which methods have a higher impact on brand equity. This dissertation aims to explain how different promotion types - monetary and non-monetary - impact the brand equity of new and mature products. The brand equity definition adopted for the study was the one outlined by Keller and Lehmann, consisting in the following dimensions: awareness, attitude, associations, attachment and activity. Quantitative data was collected through questionnaires, each portraying a control scenario (product without promotion) followed by the same product under one of the promotion scenarios. This was tested for two different product categories, breakfast cereal and soda, using two brands already established in the market against two fictitious brands. Respondents were asked to rate seventeen statements regarding brand equity for each of these scenarios, followed by analysing the generated data by using t-tests. Contrarily to what was suggested by literature, overall monetary promotions were found to result in higher brand equity than non-monetary promotions. This was verified for both new and mature products. Nevertheless, both types of promotions are beneficial when contrasted with the situation of no promotion in contrast to having no promotion. Furthermore, new brands seem to be the ones whose brand equity most benefits from both monetary and non-monetary promotions.

Date of Award	21 Jul 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Romeiro (Supervisor) & Wilson Bastos (Co-Supervisor)