Considers the differences between consumer perceptions of nonmonetary promotions such as free extra product and monetary promotions such as discounts and rebates. Reports on an experiment which found that monetary promotions did not have to be as large as nonmonetary promotions to be noticed by the consumer, and that large incentives make consumers sceptical. Concludes that the decision about which type of promotion to use depends on whether a price‐conscious or a premium product market segment is being sought.
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Campbell et al. (1990) studied this question.
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