Consumer responses to a price increase vs. a price decrease or a withdrawal of promotion.
Liau, Florence Ling Ying.
Lin, Xiu Qin.
Date of Issue2007
College of Business (Nanyang Business School)
Many past studies have investigated the impact of price cuts and promotions on consumers. In contrast, there have been relatively few studies done on consumer responses to price increases and withdrawals of promotion. Price increases and withdrawals of promotion are, however, important marketing actions which help firms maintain or restore profitability in the midst of intense competition. Two issues are particularly worthy of attention: (1) Will a price increase so adversely affect consumer responses that it becomes challenging to implement? (2) Will a withdrawal of promotions of equivalent value produce a less adverse effect than an outright price increase?
Final Year Project (FYP)
Nanyang Technological University