An Empirical Research On The Impact Of Price Promotion On Retailer Brand Equity

With the development of our economy, the retail industry has been growing so fast. At present, Chinese retail industry has two important features:first, many kinds of retailers; second, more foreign retailers in the market. To get the competition advantage, almost all of retailers spare no efforts on brand strategy.Price promotion is one of the most common marketing tools. There are a lot of papers about impact of price promotion on product brand asset, however, few researches about how it influences retailer brand asset can be found. This paper finds competitive response moderates the impact of price promotion on retailer brand asset concerning degree and frequency. The concrete results are following:first, in the condition of one retailer offers price promotion while its competitors do not, its brand asset is higher than its competitors. Otherwise, it is lower. Second, in the condition of one retailer offers higher discount than its competitors, its brand asset is higher. Otherwise, it is lower. Third, in the condition of discount frequency one retailer offers is higher than its competitors, its brand asset is higher. Otherwise, it is lower.According to research results, this paper provides useful suggestion about how to take advantage of price promotion to improve retailer brand asset.