Price Promotion for Emotional Impact

Abstract

Managers and academics often think of price promotions merely as incentives that entice consumers to accept offers that they might not have considered otherwise. Yet the prospect of paying a lower price for a product of given quality can also discourage deliberation, in a sense "dumbing down" the purchase encounter by making it less consequential. The authors examine this possibility in a dual-system theory of consumer behavior. Specifically, they argue that price promotion lowers a consumer's motivation to exert mental effort, in which case purchase decisions are guided less by extensive information processing and more by a quicker, easier, strong conditioner of preference: affect. Field data from a large daily deal company and four controlled experiments support this idea and document its implications primarily for product choice, in turn providing insight into the form and cause of brand switching that manufacturers and retailers can leverage to improve the allocation of promotional budgets and category management.

The Impact of Mobile Telecommunication Companies Price War on Consumer Purchasing Behaviour in Ghana

“…These observations of the respondents render support to the assertion that the most distinguishing feature of price wars is its emphasis on getting consumers to take action in order to increase sales [4]. This is because majority of respondents indicated in the current study that they would switch from their present service provider should they find that their current prices tend to be higher than other competitors.…”

“…Price war is a marketing strategy whereby competing firms continuously lower prices to undercut the competition in order to increase revenue in the short-term or as a long-term strategy to gain large market share [4]. Price war is also a term used in economic sector to indicate a state of intense competitive rivalry amongst suppliers of goods and services, accompanied by a multi-lateral series of price reduction [7].…”

“…Thirty-five (35) of the respondents were found to have been with a network company for a period between one and two (1-2) years, representing by 19.7%. Fifty-seven (57) of the respondents have used the services of a network company between three and four years (3)(4) years. This represents 32.0%, while, eighty-two (82) respondents have been using a network services for 5 years or more, representing 46.1%.…”

Multi-unit price promotions and their impact on purchase decisions and sales

“…In addition, a higher quantity requirement means a higher threshold for consumers before they can benefit from the promotion, which should lead to lower purchase probabilities (Foubert and Gijsbrechts, 2007). Based on this reasoning and empirical findings by Aydinli, Bertini, and Lambrecht (2014), Foubert and Gijsbrechts (2007), and Wansink, Kent and Hoch (1998), we formulate hypotheses 6 and 7.…”

Thrilled to Have “Bagged a Bargain” or “Bitter” and “Very Frustrating”? Exploring Consumer Attitudes to Value and Deals in Tourism

“…This type of attitude and the associated behavior confirm the idea that these consumers spend increasingly more time online, on comparison websites for example, looking for exceptional value for money (Buhalis and Law 2008;Tanford et al 2012). Although research suggests that price promotions reduce deliberation time (Aydinli et al 2014), for people whose attitudes suggest high deal proneness and value consciousness, information search is likely to be lengthy and yet a positive and value-enhancing process.…”