Advances in Consumer Research
Issue:5 : 557-563
Research Article
From Discounts to Brand Love: Examining the Long-Term Impact of Promotional Strategies on Customer Loyalty
 ,
 ,
 ,
1
Associate Professor, Department of Business Administration, Pranveer Singh Institute of Technology
2
Assistant Professor, Department of Business Administration, Pranveer Singh Institute of Technology
3
Professor, Department of Business Administration, Pranveer Singh Institute of Technology
Received
Sept. 30, 2025
Revised
Oct. 7, 2025
Accepted
Oct. 22, 2025
Published
Oct. 30, 2025
Abstract

This study investigates the long-term effects of various promotional strategies on customer loyalty, with a particular focus on emotional brand attachment as a mediating factor. Using a cross-sectional survey design, data were collected from 520 consumers representing diverse retail categories, including grocery, apparel, and electronics. Promotional strategies were categorized into four types: price discounts, buy-one-get-one (BOGO) offers, loyalty points, and experiential rewards. Statistical analyses, conducted using SPSS (Version 29.0) and AMOS (Version 29.0), included descriptive statistics, Independent Samples t-Test, One-Way ANOVA, Pearson correlation, multiple linear regression, and structural equation modeling. Results showed that discount-based promotions were associated with significantly higher loyalty scores compared to non-discount promotions, while loyalty points and experiential rewards outperformed BOGO offers in fostering loyalty. Emotional brand attachment demonstrated a strong positive correlation with loyalty and served as a significant mediator between promotional strategies and loyalty. The findings suggest that strategies creating emotional engagement, rather than purely monetary incentives, are more effective in sustaining long-term customer relationships. These insights have implications for marketing strategy design aimed at balancing short-term sales boosts with lasting brand connections.

Keywords
INTRODUCTION

Promotional strategies have long been a central tool for marketers aiming to drive immediate sales and influence consumer purchasing behavior. From price cuts to experiential offers, businesses have employed a wide range of tactics to attract attention and encourage transactions. While the short-term effectiveness of these promotions is well established, their role in shaping sustained customer loyalty and deeper brand relationships is less clear.

 

Customer loyalty extends beyond repeated transactions; it reflects an ongoing preference and commitment toward a brand, even in the face of competing offers. Increasingly, researchers and practitioners alike recognize that emotional brand attachment—an affective bond between consumer and brand—can be a critical determinant of such loyalty. Promotions may serve as both a trigger for initial purchase and a contributor to the development of this attachment, depending on their nature and the consumer’s perceived value.

 

This research examines the long-term impact of different promotional strategies—price discounts, buy-one-get-one offers, loyalty points, and experiential rewards—on customer loyalty, with emotional brand attachment as a mediating variable. By integrating statistical analysis and structural equation modeling, the study aims to uncover not only direct effects but also the pathways through which promotions influence loyalty. The findings provide insights into how businesses can design promotions that balance immediate gains with enduring customer relationships, offering both academic value and practical implications for marketing strategy.

LITERATURE REVIEW

Promotional strategies remain a pivotal area of marketing research, as they directly influence consumer purchase decisions and brand relationships. Monetary incentives, such as price discounts and coupons, have been widely studied for their immediate impact on sales volume (Blattberg&Neslin, 1990; Chandon et al., 2000). While these promotions effectively stimulate trial purchases, their long-term influence on loyalty is more complex (Del Vecchio et al., 2006; Li et al., 2020). Short-term benefits may erode brand equity if consumers develop deal-seeking habits (Ailawadi et al., 2001).

 

Non-monetary promotions, including experiential rewards and loyalty programs, have shown promise in enhancing both behavioral and attitudinal loyalty (Yi &Jeon, 2003; Breugelmans et al., 2015). These strategies often work by fostering emotional brand attachment, a construct linked to higher repurchase intentions and resistance to switching (Thomson et al., 2005; Park et al., 2010). Research indicates that emotional engagement can transform transactional relationships into enduring brand-consumer bonds (Carroll &Ahuvia, 2006; Bergkvist&Bech-Larsen, 2010).

 

The mediating role of emotional brand attachment between promotions and loyalty has received less empirical attention. Studies on service industries suggest that such attachment explains how relationship marketing strategies translate into loyalty (Chen &Myagmarsuren, 2011; Iglesias et al., 2011). In retail, structural equation modeling has been used to confirm these indirect pathways (Fullerton, 2011; Han et al., 2018). However, the literature remains fragmented, with a need for integrated models comparing multiple promotional types within the same framework.

 

Research Gap

While existing studies extensively document the short-term benefits of promotions, limited attention has been paid to their sustained influence on customer loyalty when emotional brand attachment is considered as a mediating factor. Much of the prior research focuses on sales uplift or redemption rates, overlooking the psychological and relational aspects that determine whether promotional effects persist over time. This gap is particularly evident in comparative analyses of different promotional types, where experiential rewards and loyalty programs remain underexplored relative to monetary incentives.

 

Conceptual Framework

The conceptual framework positions promotional strategies as the primary independent variable, customer loyalty as the dependent variable, and emotional brand attachment as a mediator. It accounts for both direct effects of promotions on loyalty and indirect effects through brand attachment. The framework also recognizes that the strength of these relationships may vary by the type of promotional strategy used.

 

Figure 1.1: Conceptual Framework

 

Hypotheses

  • H1: Price discounts positively influence customer loyalty.
  • H2: Loyalty points positively influence customer loyalty.
  • H3: Experiential rewards positively influence customer loyalty.
  • H4: Emotional brand attachment mediates the relationship between promotional strategies and customer loyalty.
METHODS

Research Design

This study employed a quantitative, cross-sectional research design to investigate the long-term impact of various promotional strategies on customer loyalty and emotional brand attachment. A survey-based approach was chosen to allow for the collection of standardized responses from a large sample, enabling statistical comparisons across different promotional categories. The choice of a cross-sectional design was driven by the aim to capture a snapshot of current behaviors and perceptions while still allowing for retrospective reporting on purchase histories.

 

Sampling Strategy and Participant Selection

Participants were selected using stratified random sampling to ensure representation across multiple retail categories, including grocery, apparel, and electronics. The final sample consisted of 520 respondents, aged between 18 and 65 years, with a balanced gender distribution. This approach was chosen to minimize selection bias and ensure that the promotional strategies evaluated reflected diverse consumer experiences.

 

Data Collection Procedure

Data were collected via an online questionnaire distributed through retail partner mailing lists and targeted social media advertising. The survey remained active for three weeks in May 2025. Respondents provided consent before participation, and anonymity was guaranteed. An online survey platform (Qualtrics, Version XM 2025) was used to facilitate data collection, chosen for its secure infrastructure and advanced branching logic.

 

Measures and Variables

Promotional strategies were categorized into four groups: price discounts, buy-one-get-one offers, loyalty points, and experiential rewards. Customer loyalty was measured using a 5-item Likert scale assessing repeat purchase intentions and willingness to recommend the brand. Emotional brand attachment was assessed using a validated 7-item scale capturing affective and psychological connections to the brand. These measures were selected for their high reliability and prior use in consumer behavior research.

 

Data Cleaning and Preparation

Data cleaning involved the removal of incomplete responses (n = 27) and extreme outliers beyond ±3 standard deviations. All categorical variables were coded numerically for analysis. The process was conducted in SPSS (Version 29.0, IBM Corp.), chosen for its user-friendly interface and compatibility with the planned statistical procedures.

 

Statistical Analyses

Descriptive statistics were calculated to summarize demographic variables and key constructs. Independent Samples t-Tests were performed to compare loyalty scores between customers exposed to discount-based promotions and those who were not. One-Way ANOVA was applied to assess differences in loyalty across all four promotional strategy categories. Pearson correlation analysis examined the association between emotional brand attachment and loyalty scores. Multiple linear regression was employed to identify the most significant predictors of loyalty, while Structural Equation Modeling (SEM) was conducted in AMOS (Version 29.0, IBM Corp.) to test the hypothesized relationships between promotions, brand attachment, and loyalty. The inclusion of SEM was motivated by its ability to simultaneously evaluate direct and indirect effects in the conceptual framework.

 

RESULTS AND ANALYSIS

The descriptive statistics provided an overview of the promotional strategies, customer loyalty scores, and emotional brand attachment levels. As shown in Table 1, customers reported moderate-to-high loyalty (M = 4.12, SD = 0.78) and brand attachment (M = 4.05, SD = 0.82). The most common promotional approach reported was price discounts, followed by loyalty points, buy-one-get-one offers, and experiential rewards. This distribution is illustrated in Figure 1.2, highlighting a dominance of monetary incentives over experiential ones.

 

Table 1. Descriptive Statistics for Promotional Strategies, Customer Loyalty, and Brand Attachment Variables

Variable

Mean

SD

N

Customer Loyalty (1–5)

4.12

0.78

520

Brand Attachment (1–5)

4.05

0.82

520

Price Discounts (frequency %)

38%

520

Loyalty Points (frequency %)

27%

520

BOGO Offers (frequency %)

22%

520

Experiential Rewards (frequency %)

13%

520

 

Figure 1.2: Distribution of Promotional Strategies Among Surveyed Customers (bar chart format, showing frequency % for each type)

 

To examine differences between discount and non-discount customers, an Independent Samples t-Test was performed. Results in Table 2 indicate that discount customers reported significantly higher loyalty (M = 4.25, SD = 0.74) than non-discount customers (M = 3.98, SD = 0.81), t(518) = 3.56, p< .001.

 

Table 2. Independent Samples t-Test Results Comparing Loyalty Scores Between Discount and Non-Discount Groups

Group

Mean

SD

t

df

p-value

Discount

4.25

0.74

3.56

518

<.001

Non-Discount

3.98

0.81

     

 

Figure 2: Mean Loyalty Scores Across Promotional Strategy Types

 

A One-Way ANOVA assessed differences in loyalty scores across all four promotional strategies. Table 3 shows a significant effect, F(3, 516) = 5.42, p< .01. Post-hoc Tukey tests revealed that loyalty points and experiential rewards were associated with higher loyalty scores than BOGO offers. Figure 2 visually depicts mean loyalty scores for each promotional type.

 

Table 3. One-Way ANOVA Results for Loyalty Across Multiple Promotional Strategy Types

Source

SS

df

MS

F

p-value

Between Groups

9.84

3

3.28

5.42

0.001

Within Groups

312.4

516

0.61

   

Total

322.2

519

     

 

Figure 3: Scatterplot of Emotional Brand Attachment vs. Customer Loyalty Scores (positive correlation trend)

 

Pearson correlation analysis (Table 4) indicated a strong positive relationship between emotional brand attachment and loyalty (r = 0.68, p< .001). This relationship is also visualized in Figure 3, which displays a clear upward trend between attachment scores and loyalty.

 

Table 4. Pearson Correlation Coefficients Between Emotional Brand Attachment and Customer Loyalty

Variables

r

p-value

Brand Attachment & Loyalty

0.68

<.001

 

To test the proposed conceptual framework, a Structural Equation Model was estimated. The final model achieved acceptable fit indices (χ²/df = 2.1, CFI = 0.94, RMSEA = 0.046). As shown in Figure 4, promotional strategies had both direct and indirect effects on loyalty through brand attachment. Price discounts showed a weaker indirect pathway compared to loyalty points and experiential rewards, supporting the hypothesis that emotional connection plays a mediating role.

 

Figure 4: Structural Equation Model Depicting Relationships Between Promotional Strategies, Brand Attachment, and Loyalty

 

Data Analysis and Interpretation

The descriptive statistics (Table 1) indicate that overall customer loyalty and brand attachment levels were moderately high across the sample, with price discounts being the most frequently encountered promotional strategy (Figure 1.2). The Independent Samples t-Test (Table 2) revealed that customers exposed to discount-based promotions exhibited significantly higher loyalty scores than those not receiving discounts, suggesting that short-term incentives can have a measurable effect on repeat purchase intentions.

 

The One-Way ANOVA (Table 3) further demonstrated significant differences in loyalty across promotional strategy types, with post-hoc analyses indicating that loyalty points and experiential rewards yielded higher loyalty than BOGO offers. This trend is clearly reflected in the visual comparison of means (Figure 2).

 

Correlation analysis (Table 4) showed a strong positive association between emotional brand attachment and loyalty, as illustrated in Figure 3, reinforcing the idea that deeper emotional connections are linked to stronger customer retention.

 

The Structural Equation Model (Figure 4) confirmed that promotional strategies influence loyalty both directly and indirectly through brand attachment. Notably, experiential rewards exhibited the strongest indirect pathway via attachment, while price discounts had a weaker indirect effect, aligning with the theoretical expectation that emotionally engaging promotions foster more enduring loyalty.

CONCLUSION

The findings of this study confirm that promotional strategies have both direct and indirect effects on customer loyalty, with emotional brand attachment playing a critical mediating role. Price discounts, loyalty points, and experiential rewards were all positively associated with loyalty, although the strength of their influence varied. Notably, strategies that foster emotional engagement, such as experiential rewards, demonstrated a stronger and more enduring impact compared to purely monetary incentives. These results support all proposed hypotheses and highlight the importance of integrating relational elements into promotional design.

 

This study employed a cross-sectional design, which limits the ability to infer causality over time. The data relied on self-reported measures, which may be subject to recall bias or social desirability bias. Additionally, the research sample was limited to consumers from specific retail categories, potentially constraining the generalizability of findings to other sectors.

 

For marketers, the results underscore the need to view promotions not solely as short-term sales drivers but as strategic tools for building brand loyalty. Incorporating emotionally resonant elements into promotions can create stronger consumer-brand bonds, leading to sustainable customer relationships.

 

Future research could adopt a longitudinal approach to assess changes in loyalty and brand attachment over time following promotional campaigns. Expanding the scope to include service industries, cultural variations, and digital-only promotions could further enrich understanding. Experimental designs could also test the causal pathways suggested by the structural equation model, providing more definitive evidence of promotional effectiveness.

REFERENCES
  1. Ailawadi, K. L., Neslin, S. A., &Gedenk, K. (2001). Pursuing the value-conscious consumer: Store brands versus national brand promotions. Journal of Marketing, 65(1), 71–89. https://doi.org/10.1509/jmkg.65.1.71.18132
  2. Bergkvist, L., &Bech-Larsen, T. (2010). Two studies of consequences and actionable antecedents of brand love. Journal of Brand Management, 17(7), 504–518. https://doi.org/10.1057/bm.2010.6
  3. Blattberg, R. C., &Neslin, S. A. (1990). Sales promotion: Concepts, methods, and strategies. Englewood Cliffs, NJ: Prentice Hall.
  4. Breugelmans, E., Campo, K., &Gijsbrechts, E. (2015). Advantages of national brand dominance in private label penetration: Evidence from promotional data. Journal of Retailing, 91(3), 358–372. https://doi.org/10.1016/j.jretai.2015.03.002
  5. Carroll, B. A., &Ahuvia, A. C. (2006). Some antecedents and outcomes of brand love. Marketing Letters, 17(2), 79–89. https://doi.org/10.1007/s11002-006-4219-2
  6. Chandon, P., Wansink, B., & Laurent, G. (2000). A benefit congruency framework of sales promotion effectiveness. Journal of Marketing, 64(4), 65–81. https://doi.org/10.1509/jmkg.64.4.65.18071
  7. Chen, C. F., &Myagmarsuren, O. (2011). Brand equity, relationship quality, relationship value, and customer loyalty: Evidence from the telecommunications services. Total Quality Management & Business Excellence, 22(9), 957–974. https://doi.org/10.1080/14783363.2011.593872
  8. DelVecchio, D., Henard, D. H., &Freling, T. H. (2006). The effect of sales promotion on post-promotion brand preference: A meta-analysis. Journal of Retailing, 82(3), 203–213. https://doi.org/10.1016/j.jretai.2005.10.001
  9. Fullerton, G. (2011). Creating advocates: The roles of satisfaction, trust and commitment. Journal of Retailing and Consumer Services, 18(1), 92–100. https://doi.org/10.1016/j.jretconser.2010.10.003
  10. Han, H., Kwortnik, R. J., & Wang, C. (2018). Service loyalty: A critical review and research agenda. Cornell Hospitality Quarterly, 59(1), 35–61. https://doi.org/10.1177/1938965517729314
  11. Henderson, C. M., Beck, J. T., &Palmatier, R. W. (2011). Review of the theoretical underpinnings of loyalty programs. Journal of Consumer Psychology, 21(3), 256–276. https://doi.org/10.1016/j.jcps.2011.02.007
  12. Iglesias, O., Singh, J. J., & Batista-Foguet, J. M. (2011). The role of brand experience and affective commitment in determining brand loyalty. Journal of Brand Management, 18(8), 570–582. https://doi.org/10.1057/bm.2010.58
  13. Keller, K. L. (2009). Building strong brands in a modern marketing communications environment. Journal of Marketing Communications, 15(2–3), 139–155. https://doi.org/10.1080/13527260902757530
  14. Khan, M., & Khan, I. (2020). Effects of price discounts and store loyalty programs on customer retention. Journal of Retailing and Consumer Services, 53, 101963. https://doi.org/10.1016/j.jretconser.2019.101963
  15. Kim, J., & Hyun, Y. J. (2011). A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector. Industrial Marketing Management, 40(3), 424–438. https://doi.org/10.1016/j.indmarman.2010.06.024
  16. Kivetz, R., & Simonson, I. (2002). Earning the right to indulge: Effort as a determinant of customer preferences toward frequency program rewards. Journal of Marketing Research, 39(2), 155–170. https://doi.org/10.1509/jmkr.39.2.155.19084
  17. Kopalle, P. K., Mela, C. F., & Marsh, L. (1999). The dynamic effect of discounting on sales: Empirical analysis and normative pricing implications. Marketing Science, 18(3), 317–332. https://doi.org/10.1287/mksc.18.3.317
  18. Li, F., Zhou, N., Kashyap, R., & Yang, Z. (2020). Brand loyalty programs: The role of loyalty intentions and customer satisfaction. Journal of Retailing and Consumer Services, 54, 102010. https://doi.org/10.1016/j.jretconser.2019.102010
  19. Liu, Y., & Yang, R. (2009). Competing loyalty programs: Impact of market saturation, market share, and category expandability. Journal of Marketing, 73(1), 93–108. https://doi.org/10.1509/jmkg.73.1.93
  20. McCall, M., & Voorhees, C. M. (2010). The drivers of loyalty program success: An organizing framework and research agenda. Cornell Hospitality Quarterly, 51(1), 35–52. https://doi.org/10.1177/1938965509355395
  21. Mimouni-Chaabane, A., &Volle, P. (2010). Perceived benefits of loyalty programs: Scale development and implications for relational strategies. Journal of Business Research, 63(1), 32–37. https://doi.org/10.1016/j.jbusres.2009.01.008
  22. Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63, 33–44. https://doi.org/10.2307/1252099
  23. Park, C. W., MacInnis, D. J., Priester, J., Eisingerich, A. B., &Iacobucci, D. (2010). Brand attachment and brand attitude strength: Conceptual and empirical differentiation of two critical brand equity drivers. Journal of Marketing, 74(6), 1–17. https://doi.org/10.1509/jmkg.74.6.1
  24. Sharp, B., & Sharp, A. (1997). Loyalty programs and their impact on repeat-purchase loyalty patterns. International Journal of Research in Marketing, 14(5), 473–486. https://doi.org/10.1016/S0167-8116(97)00022-0
  25. Shimp, T. A., & Andrews, J. C. (2013). Advertising, promotion, and other aspects of integrated marketing communications (9th ed.). Mason, OH: Cengage Learning.
  26. Sivakumar, K., & Raj, S. P. (1997). Quality tier competition: How price change influences brand choice and category choice. Journal of Marketing, 61(3), 71–84. https://doi.org/10.2307/1251783
  27. Srinivasan, S. S., Anderson, R., &Ponnavolu, K. (2002). Customer loyalty in e-commerce: An exploration of its antecedents and consequences. Journal of Retailing, 78(1), 41–50. https://doi.org/10.1016/S0022-4359(01)00065-3
  28. Thomson, M., MacInnis, D. J., & Park, C. W. (2005). The ties that bind: Measuring the strength of consumers’ emotional attachments to brands. Journal of Consumer Psychology, 15(1), 77–91. https://doi.org/10.1207/s15327663jcp1501_10
  29. Uncles, M. D., Dowling, G. R., & Hammond, K. (2003). Customer loyalty and customer loyalty programs. Journal of Consumer Marketing, 20(4), 294–316. https://doi.org/10.1108/07363760310483676
  30. Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development. Journal of Marketing, 67(4), 30–45. https://doi.org/10.1509/jmkg.67.4.30.18685
  31. Wirtz, J., & Lovelock, C. (2016). Services marketing: People, technology, strategy (8th ed.). Singapore: World Scientific Publishing.
  32. Yi, Y., &Jeon, H. (2003). Effects of loyalty programs on value perception, program loyalty, and brand loyalty. Journal of the Academy of Marketing Science, 31(3), 229–240.
Recommended Articles
Research Article
Service-Dominant Logic and Perceived Value in Training: A Primary Investigation Among Recent Graduates
Published: 30/10/2025
Research Article
The Business Value of Generative AI and Big Data Integration: A Framework for Strategic Transformation
Published: 30/10/2025
Research Article
Factors affecting the organization of accounting work in the digital transformation period at enterprises in Hai Phong City
Published: 28/10/2025
Research Article
Impact of Resort-Based Marketing Stimuli on the Engagement of Customers: An Empirical Investigation of Tourists' Response in North Karnataka
...
Published: 28/10/2025
Loading Image...
Volume 2, Issue:5
Citations
20 Views
23 Downloads
Share this article
© Copyright Advances in Consumer Research