Sales promotions targeted at consumers (e.g., coupons, sweepstakes, free offers, etc.) form a large and
growing part of the marketing budget worldwide. The key managerial questions regarding sales promotions
today are: a) Are they increasing profits to their maximum potential? b) Are they as profitable as they might be?
c) Can this be achieved through their design and communication? and d) What are their long term effects? In this
article we propose a framework that examines the effect of managerially controllable actions, specifically,
designing and communicating a sales promotion, on increasing the incentive for different segments of consumers to
purchase a product. We develop an integrative model that theorizes that sales promotions have three distinct
aspects: (i) An economic aspect that provides an immediate monetary economic incentive as well as non-monetary
incentives such as saving time and effort to make a decision, along with immediate and longer-term disincentives
to purchase a brand; (ii) An informational aspect that consumers use as a cue (e.g., a need reminder) or as the
basis to draw inferences; and (iii) An affective aspect that impacts how consumers feel about their shopping
transaction, including both positive as well as negative feelings. We suggest that the manner in which a
promotional offer is designed and communicated differentially impact both its information value and its affective
appeal and accordingly, enhance or diminish the attractiveness of the offer beyond the economic incentive it
provides. Such a conceptualization can help managers design and communicate consumer promotions more
efficiently as well as more effectively. The overall idea is that companies’ promotion strategies should attempt to
maximize the positive informative and affective aspects, as these can lessen the need for a large economic (e.g., face
value) incentive and thereby increase the promotions’ profitability.