Evaluating the impact of VAT-free promotion: the role of loyalty program membership and category characteristics

This study examines the impact of value-added tax (VAT)–free promotions on sales performance. VAT-free promotions are a recently adopted form of price promotions where consumers are exempted from paying the VAT amount across almost all products in the assortment during a limited number of days. They are typically organized once per year and surrounded by a large amount of media attention from the involved retailer. To test the effects of this...