Sales promotions: watering down the wine?

Purpose This paper focuses on sales promotions in the wine industry. It investigates the impact of three different types of sales promotions (i.e. coupons, discounts and “buy X, get one free”) at three different levels (i.e. 20, 30 and 50%) and two different price points (low- and high-priced wine) on purchase intentions, perceived quality, prestige and brand image. Design/methodology/approach Participants were randomly assigned to one of 18 experimental conditions, corresponding to a 3 (type of sales promotion) × 3 (promotion level) × 2 (wine price points) between-subjects design. Data were analyzed using MANOVA. Findings Results showed that for cheap wine, all promotion types at low and medium levels (20–30%) were effective in boosting purchase intentions, with traditional discounts outperforming high-value coupons and “buy X, get one free” offers. In contrast, for expensive wine, only a low-level discount (20%) had a positive effect, while higher-level promotions reduced purchase intentions and damaged brand perception. Across both wine categories, high-intensity promotions consistently lowered perceived quality, prestige and brand image, indicating that deep discounts may signal reduced quality. Originality/value This paper offers original value by addressing gaps in the existing literature on sales promotions. Unlike prior studies that primarily focus on general consumer goods, it specifically investigates the under-researched context of wine. Furthermore, it expands the scope of analysis by examining three distinct types of sales promotions, a perspective that has not been explored in depth in the past.