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research addressed the question regarding the difference in the short-term
impact on sales volume and long-term impact on brand loyalty of price and non-price
promotions. According to economic utility hypothesis, price-promotions have stronger
positive short-term influence than non-price promotions. Nevertheless, the
impact of promotion on brand retention is ambiguous and hard to precisely
estimated. Behavioral learning theory and self-perception theory suggest that
acquiring promoted products may increase, detract, or have little impact on
brand preference in comparison to purchasing non-promoted products. In the
language of behavioral learning hypothesis, price promotions are less effective
than non-price promotions because price promotions can be primarily considered
as reinforcement or in the context of self-perception theory, they are the
reason to buy the brand. Therefore, it is hypothesized that price promotions
are more effective than non-price promotions in the short-term while being less
promising the long-term1.                                

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