Sales Promotion and Brand Loyalty: Some New Insights

Sales promotions have become one of the preferred methods of marketing communication. The purpose of this study is to establish the impact of different types of monetary and nonmonetary promotions on brand loyalty and its relationship to product involvement. A comprehensive literature review of sales promotion was undertaken to inform this study. A study of consumers in Puerto Rico was undertaken that includes both nonmonetary and monetary promotions and reports the impact on long-term effects, such as brand loyalty and the type of risk associated with a product or service. We report our findings for both high and low involvement products. Our results show that both monetary and nonmonetary promotions can enhance brand loyalty, contrary to findings of previous studies. Finally we make some recommendations