For an (un)limited time…
An interesting bit in an Ad Age story notes how limited-time promotions introduced during spending slumps tend to hand around and become part of the marketplace:
Downtime promotions can be addictive
American Airlines, defending its position, in May 1981 introduced AAdvantage, the industry’s first loyalty-marketing program. United Airlines followed with Mileage Plus, a short-term promotion that was to end in 1982. Frequent-flier programs went on to become a permanent fixture in airline marketing.Chrysler introduced auto rebates in early 1975 as a short-term promotion to clear its bloated inventory. Automakers have been addicted to rebates ever since.
And zero-percent financing after 9/11 too, right?
Reader Comments
Speaking of Chrysler, the other day my economics teacher as SUNY Purchase, informed the class that on his way to campus he passed a Chryseler dealership. We were all quite puzzled as to why, this was so funny (he was laughing)… but then he informed us that if anyone needs a new car, Chrysler is having a “Buy one get one free sale” just for that day! Apparently the first couple customers, that could afford to pay in cash (no leasing or financing accepted), would recieve a free car of equal or lesser value. I wonder, if the Big-3 Bailout fails too pass, will other car dealerships begin having this type of sale?