Implicit reaction time tests can be used to understand the effect a promotional mechanism can have on both brand equity and intention to make a purchase. Split Second Research has now cnducted many of these kinds of studies and results are nearly always surprising. Although promotions and offers can increase short-term sales, they can have negative long-term effects on the brand, particularly by impacting brand equity. Our studies reveal that brand managers need to know which kind of promotion would work best for its brand because there are no general rules that apply within and between categories.

The talk focussed on pricing promotions and a case study on basic and luxury brands of toilet tissue. We identified Tesco’s best stratgey for pricing its two products in this category.