The extant literature on price promotions typically assumes that consumers loyal to a brand never switch to a competing brand, with Shilony (1977) and Raju et al (1990) being exceptions. Extending the Narasimhan (1988) model, we allow loyal consumers to hold finite brand loyalty. Our unique...

"This present paper aims to provide some new perspectives on how firms' price promotional decisions may depend on different levels of brand loyalty and switcher population. We present a duopoly model with a segment of price-sensitive switchers and a segment of customers who are loyal to one of...