Franchise evaluations of promoted brands: Examining the influence of type of sales promotion, product quality, company reputation, and consumer involvement

The effects of sales promotions on promoted brands is an area that has tremendous implications for both academic and practitioner marketers. The results to date have been inconsistent and diverse because of theoretical and methodological shortcomings. The present dissertation provides empirical evidence for resolution of some inconsistencies by improving the theory and the methods to examine the effects of sales promotions on promoted brands.;In summary, the results show that consumer evaluations (franchise) of promoted brands are determined by the type of sales promotion, and are moderated by the quality of the promoted product, and the reputation of the company that offers the promotion.;In detail, the results show that products associated with sales promotions are evaluated higher when sales promotions are image-related versus price-related. Moreover, the evaluations of high quality products are higher than the evaluations of low quality products irrespective of promotion. Company reputation has the same effects as the quality of the product. Consumer involvement influences evaluations of sales promotions but its effects have been statistically removed as a covariate.;When the combined effects of sales promotion type and product quality are considered then the results show that for high quality products type of sales promotion makes no difference on consumer franchise. But when the quality of the product is low, then priceoffs result in lower evaluations than image-related strategies. Similar patterns were found when the reputation of the company and type of sales promotion were considered together. Finally, when quality of the product and the reputation of the company are considered together, product quality has a stronger effect on consumer franchise than reputation.