Executive Summary (This is a document excerpt)

Although online retailers liberally lavish customers — both newbies and their most loyal fans — with a constant stream of promotions such as percent discounts, dollars off, and free shipping, the efficacy of such tactics is questionable. While promotions may drive business in the near term, such practices lead to long-run dependency and negligible gains. Retailers that promote less aggressively experience better results in key online metrics, including conversion.

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