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Amid prolonged economic instability, consumers often recalibrate their purchasing decisions based on both price sensitivity and brand perception. This study investigates how price promotions influence consumer buying behavior and brand image in Lebanon, a market marked by hyperinflation and financial uncertainty. Grounded in the price sensitivity and price perception literature, the study further explores the mediating role of brand image in this relationship. Using a structured questionnaire, data were collected from 344 Lebanese consumers and analyzed using SmartPLS 4 employing Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that price promotions are significantly associated with consumer purchase decisions and positively shape brand image. Notably, brand image serves as a key mediator, suggesting that symbolic brand value remains influential even in highly price-sensitive contexts. These findings advance research on price sensitivity and promotional effectiveness by highlighting dual-pathway logic, combining economic pragmatism with brand-driven identity reinforcement. The study offers actionable insights for marketers seeking to balance short-term sales activation with long-term brand equity preservation in economically distressed environments.
Maalouf et al. (Tue,) studied this question.