This study measures the impact of reward-based promotions against traditional discount-based promotions with regard to brand equity and purchase intention. With over 1,000 consumers surveyed worldwide, one of the study’s most compelling findings was the fact that reward-based promotions outperform discount-based promotions in both brand equity and purchase intention. The study shows that reward-based promotions are even more efficient compared to discount-based promotions from brands whose consumer base is mostly composed of frequent shoppers and/or utilitarian shoppers.

Some of the most important key findings of this survey include:

  • Reward-based promotions exceed performance of discount-based promotions by over 21% for positive brand image creation
  • More specifically, reward-based promotions have been shown to outperform discount-based promotions by over 42% with regard to brand differentiation
  • Reward-based promotions also outperform discount-based promotion by over 13% for purchase intention.

This white paper also includes key recommendations for marketers looking to leverage these insights when crafting future promotions. The study utilizes a research-based methodology in order to properly assess brand equity (i.e. perceived quality and brand image) and purchase intention.

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