The current research examines the influence of sales promotions on the reference price effects. According to prospect theory, consumers are expected to be more sensitive to price losses than price gains(i.e., loss aversion). However the results of a large number of empirical studies show that, contrary to expectation, brand choice decisions are more strongly affected by price gains than price losses. The current research suggests that retail stores’ sales promotion explains these unexpected findings. That is, sales promotion directs consumers’ attention toward price gains, increasing the relative impact of the price gain than the price loss. The prediction is tested by analyzing scanner panel data using multivariate logit models. The results supported the prediction showing that sales promotion increases the relative impact of price gains rather than price losses.