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Marketing - Pricing


Value Destruction by Price Promotions? The Case of the European Automobile Industry Due to the abolition of two important legal restrictions (Rabattgesetz and Zugabeverordnung) in August 2001 the marketing instrument of price promotions is much more widely applied in the German car retail market than only some years ago. We explore the impact of automobile price promotions on shareholder value. As an indicator for shareholder value, stock market performance of eight European car manufacturers is tested for abnormal returns due to the announcement of price promotions in the German car market within the period of 2001 to 2004. pdf






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Status: 18. Januar 2008