The Impact Of Price Promotions On Customer Loyalty

The price promotion is the enterprise's sharp weapon of increasing the sales volu me in a short-term and expanding the market share. The effective price promotion lets the enterprise rapidly expand sales volume and occupies the market share of competit or, simultaneously may reduce the cost of obtaining some product or service. The rela tionship between price promotion and purchased decision-making process with the cons umer has already become a hot spot in the theory and on the practice research.The core of this research is the formation mechanism that the price promotion aff ects customer loyalty through the customer perceived value. The price promotion, cust omer perceived value, the customer loyalty as well as their relations are main contents of this article. Through the reorganization related literature theories as well as the em pirical analysis, this article hopes to grasp theories of price promotion and discuss ho w price promotion affects behavior loyalty and attitude loyalty through different dimen sions of customer perceived value.This article provides a useful idea for functional me chanism of other factors on customer attitude loyalty and behavior loyalty.This article explicates the value of this study from both theoretical and practical a ngle. Literature related to price promotions, customer perceived value and customer lo yalty are prepared for the form of hypothesis and the establishment of models. Then SPSS 15.0 are used to make exploratory factor analysis and AMOS7.0 to test the hypo theses and models after introducing hypotheses, theoretical model and research design. Explanation on the results of the testing are put forward to reach conclusions and ma ke recommendations. Finally, the article is summarized and ended by pointing put the limitations of this study and future research directions.A general view on the hypothesis testing result and the related theory shows that price promotions have impact on customer loyalty both directly and indirectly with the latter kind of influence more significant. For middle and low product, reasonable pric e promotion does not reduce customer perceived quality value and brand value. Also, high attitude loyalty does not necessarily lead to high behavior loyalty, and the latter one does not obviously improve the former one.