United States firms collectively spend over $6.5 billion annually on coupon promotions and are becoming increasingly concerned with their profitability. FSI (free-standing-insert) data show that coupon duration varies across brands. In this paper, we show how coupon duration can affect coupon...

Automobile manufacturers make frequent use of promotions that give cash-back payments. Two common types of cash-back promotions are rebates to customers, which are widely publicized to potential customers, and discounts to dealers, which are not publicized. While the payments nominally go...

In many markets, price promotions are a primary mechanism by which prices are adjusted. This chapter presents an overview of how retail price promotions work in theory and in practice. While there is a heavy emphasis on fast moving consumer goods (e.g., items sold in grocery stores or CPG), we...

During the summer of 2005, the three domestic U.S. automobile manufacturers offered a customer promotion that allowed customers to buy new cars at the discounted price formerly offered only to employees. The initial months of the promotion were record sales months for each of the three firms,...

Subscription programs, which offer customers access to exclusive benefits and discounts for a recurring membership fee, are experiencing a surge in popularity in the retail sector. Most new subscription programs are launched by retailers already offering their customers free loyalty programs...