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Chapter 2 > Estimating Promotion Effects

Estimating Promotion Effects

In many business environments, organizations rely on promotion activities to spur the demand for the products they sell. Retailers, for example, offer their clients a multitude of in-store promotions in an attempt to build store and brand loyalty. “Buy one, get one free,” “Now for a limited time only, 25% off,” and “Buy one, get the second for 50% off” are just some of the special displays and promo signs that customers expect to see in retail stores. Similarly, in the hospitality industry, hotel chains attempt to improve their occupancies and increase the discretionary spending on hotel-related activities by promising more for less. “Stay four nights and the fifth is on us” is an advertising slogan that is effective for extending the cust....


  

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