Format effects in volume discounts to consumers

Abstract

PurposeUsing a classification of benefits and costs of promotional offers (Raghubir et al., 2004) along three routes -economic, informational and affective -this paper aims at evaluating, from the consumer's point of view, the relative perceptual disadvantages of separate-item bundles compared to pre-wrapped bundles. Design/methodology/approachThe marketing literature and a qualitative study based on 18 consumers permit us to identify the relative perceived costs and benefits associated with separate-item bundles and to derivehypotheses. An experiment on a sample of 120 adult consumers was then set up to test these hypotheses. FindingsThe findings suggest that consumers associate separate-item bundles with higher economic benefit but also with higher inspection costs. From a more global perspective, there is no loss of interest in separate-item bundles compared to pre-wrapped bundles. Research limitations/implicationsFocusing our research on separate-item bundles clarifies the way consumers evaluate promotions. Its qualitative phase gives support to the relevance of an "informational route" (Raghubir et al., 2004), beyond the traditional utilitarian and hedonic routes (Chandon et al., 3 2000). Its quantitative phase confirms the importance of cognitive biases in consumers' perceptions of promotions. Practical implicationsThe numerous advantages of separate-item bundles for manufacturers and retailers and their attraction to consumers should lead to an increasingly intensive use in promotional campaigns. Besides, the quality of in-store communication is the most important factor of the success of separate-item bundles, which provides the opportunity to propose meaningful recommendations for practitioners. Originality/value of paperIf the strengths and weaknesses of separate-item bundles have already been studied from a managerial point of view, to our knowledge, no research has focused on separate-item bundle efficiency from the consumer's point of view.

Virtual Bundling with Quantity Discounts: When Low Purchase Price Does Not Lead to Smart-Shopper Feelings

“…Virtual bundling has observed a steady increase from 2004 (2% of promotional offers) to 2008 (18%), and it continues to increase (A3 Distrib, 2009). According to the Panorama Trade Study, the most frequent reduction schemes in 2007 were: “buy one, get one half price” (44%), “buy two, get one free” (25%), and “buy one, get one free (BOGOF)” (9%) (Parguel, de Pechpeyrou, Sabri‐Zaaraoui, & Desmet, ; Sabri‐Zaaraoui, Parguel, & de Pechpeyrou, ). The complexity of virtual bundles increased in 2009, with virtual bundles on physical bundles, virtual bundles on already priced‐off products (Labbé‐Pinlon, Lombart, & Louis, ) and more recently with virtual bundles with quantity discounts (see Appendix ).…”

The effects of consumer perception of volume discount benefits on intention to purchase grocery products

“…To ensure content validity, the survey items were derived from previous studies. The perceived savings and perceived quality items were adapted from Grewal et al (1998) and Parguel et al (2007), the scales for the perceived self-expression value were adapted from Raghubir et al (2004) and Parguel et al (2007), the items for perceived convenience were adapted from Chandon et al (2000) and To et al (2007), the items for intention to purchase were adapted from Grewal et al (1998) and Poddar et al (2009), and finally, the scales for deal proneness were adapted from Parguel et al (2007) and Alford and Biswas (2002). Each item was measured on a five-point Likert scale.…”

Hubungan Promo Tanggal Istimewa Terhadap Keputusan Pembelian Di E-Commerce Shopee

“…Tjiptono (2015) berpendapat mengenai promosi sebagai dukungan dalam proses pembelian dengan insentif jangka pendek. Selain itu juga diungkapkan oleh Parguel et al (2007) mengenai pengecer dengan diterapkan beberapa cara metode promosi intensif dalam dan mendapatkan perhatian dari konsumen dalam peningkatan proses penjualan.…”