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Essay Details:
Essay text:
Objectives:
a. To understand the effects of promotional pricing on attracting new customers as well as their effects on existing customers
b. To understand both the negative and positive aspects of promotional pricing.
c. To have a clearer understanding of the mix of the overall outcome of promotional pricing.
2. Scope:
In this article, the author has first referred to case study of a U.S catalogue retailer that investigated the overall effects of discount promotion strategies on a business. That case study was published in the winter 2004 issue of marketing science. The author has also referred to an article titled "Long-run effects of promotion on new versus established customers; three field studies" which was authored by Eric Anderson, a visiting professor of marketing at northwestern university's Kellogg school of management, and Duncan Simester, associate professor of management science at the MIT sloan school of management...
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