Applying Choice Theory to Promotion Asymmetry Effect

We analyze customer’s brand choice of promotion effects on a High-tier brand and Low-tier brand products along dimensions of price and quality. Our empirical findings are based on a self-administered survey of some big grocery chain stores in one major city (Shanghai) in China between August 2006 to August 2008. The article raises a note of caution about promotion asymmetry effect and show that a High-tier brand can have a superior price promotion effect. An important implication of the findings from company standpoint is that managers can obtain information about a consumer’s prior brand choice beforehand in order to ensure that they send coupons to the appropriate target consumers.