Reviewing whether a frequent promotion weakens brand value

Set a baseline for promotion frequency, customer price expectations and brand-value signals, then repeat the same checks over time. Compare promotional and ordinary-price periods for the same product, keeping the questions and measures consistent.

Look for whether customers still recognise a reason to choose the product without a discount, alongside changes in expected price, willingness to pay, awareness and brand associations. Sales during a promotion alone cannot show whether brand value has changed.

Reconstruct the price history

Record each promotion’s dates, duration, actual ordinary and promotional prices, label and eligibility rules. Keep what customers saw at the destination and checkout, and record the proportion of sales at each price where those records are available.

At each review, compare the frequency of promotions and the share of sales at promotional prices with the baseline and earlier review periods. Separate promotional from ordinary-price periods and keep the comparisons consistent; the pattern is more useful than a universal frequency cutoff.

The Australian Consumer Law governs obligations around sales and promotions. The ACCC says businesses must display clear and accurate prices and must not mislead consumers; it can require businesses to back up claims about their products or services.

In a 18 December 2025 warning ahead of Boxing Day sales, the ACCC described potentially misleading time representations, including countdown timers that do not align with the sale’s true duration, and promotions that may misrepresent the true scope of discounts. Check that price and saving claims match the selling history.

Key Dates and ACCC Guidance on Promotional Claims

ACCC Requirements for Transparent Promotions

Examine expectations as well as orders

At each review, ask customers neutrally what they expect to pay and whether they expect another promotion. Ask which product or service benefit they can describe without a discount prompt, and use the same questions each time.

Track willingness to pay, awareness and brand associations alongside expected price. Compare their direction over successive review periods with promotion frequency and the proportion of sales at ordinary and promotional prices.

Compare completed orders, qualified enquiries, margin, returns or repeat purchases between promotional and ordinary-price periods where those records are reliable. Note seasonality, distribution, stock and product changes that could affect the comparison.

If promotional sales take a larger share while expected prices fall, check whether willingness to pay, awareness, brand associations or ordinary-price sales also change. The pattern alone does not establish that promotions caused a change in brand value; lower ordinary-price sales after a promotion may also reflect purchases brought forward or other changes.

Make three separate decisions

First, check whether each price or saving claim matches the selling history. Correct an unsupported claim promptly, regardless of campaign performance.

Second, assess the commercial result across promotional and ordinary-price periods, including what happened after the promotion and what the discount cost to deliver.

Third, assess whether expected price, willingness to pay, awareness, brand associations and customers’ reasons to choose the product without a discount have shifted from the baseline. Treat changes that coincide with more frequent promotions as signals to investigate, not proof of cause.

Keep each conclusion tied to the records and customer responses. A promotion can have a useful commercial role without proving a brand gain, and a change in price expectation does not by itself prove lasting brand damage.