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The Prevalence and Effectiveness of Price Promotion on Amazon

Author

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  • Lelai Xu

    (Concord College, Acton Burnell, UK)

Abstract

The intention and effectiveness of sales promotion are important topics for manufactures. In this paper, I studied the relationship between sales rank and price promotions for appliances and shoes on Amazon. The results show that for appliances, the price tends to remain low in the long term after promotion, while the improvement in sales rank is quite significant. Conversely, for shoes, the price bounces back quickly after promotion, while the improvement in sales rank becomes rather opaque in the long run. This divergent behaviour of the sales rank may be explained by the difference in reason for launching the promotion. While the primary aim for appliance sellers is to increase brand recognition, the shoe retailer is more likely to be clearing inventory because of the fast changes in fashion trends.

Suggested Citation

  • Lelai Xu, 2019. "The Prevalence and Effectiveness of Price Promotion on Amazon," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 5(4), pages 177-185.
    • Handle: RePEc:apa:ijbaas:2019:p:177-185
    DOI: 10.20469/ijbas.5.10001-4
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    References listed on IDEAS

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    1. Michael Kozak, 2018. "Conceptualizing Employer Branding: Is the Whole More than the Sum of Its Parts? Case Study-Based Evidence from Thailand," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(5), pages 197-207.
    2. Sarun Amatyakul & Kawpong Polyorat, 2018. "The application of brand personality concept to the city context in Thailand," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 4(2), pages 54-64.
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