Profiling intrinsic deal proneness for HILO and EDLP price promotion strategies

Exploring asymmetric effects in the formation of retail price satisfaction

“…For example, some stores apply a hi-lo policy with big discounts for products on sale while other stores offer low prices everyday (Hoch et al, 1994). Both strategies attract different customer segments (Bell and Lattin, 1998;Pechtl, 2004). Similar arguments support the assumption that price advertizing and products in the upper price range are also often categorized as attractive or indifferent.…”

The Effectiviness of Promotional Benefit Towards Buying Intention Moderated By The Brain’s Tendency of Consumers

“…To gain more specific segment with selling promotion, the retailers must identify the characteristics of consumers that have influenced their responses. Promotional activity of discount price and premium are considered a traditional approach to examine promotional behavior which related to individuals (Pechtl 2004) because tendency to buy, not an actual purchase or promotional commodity (Del Vecchio 2005). Consumers show their tendency to hold out from promotion offers.…”

The expected benefit as determinant of deal-prone consumers' response to sales promotions

“…Deal proneness offers a traditional approach to analyze the promotions-related behavior of individuals (Pechtl, 2004) because it is the psychological propensity to buy, not the actual purchase of, goods on promotion (DelVecchio, 2005). Therefore, deal-prone consumers show an enduring propensity to respond to promotional deals.…”

“…Specifically, academic studies have been mainly focused on how deal proneness correlates with the use of coupons (Swaminathan and Bawa, 2005), rebates, or two different kinds of price promotions in retailing: the high-low strategy (HILO) and the every-day-lowprice (EDLP) strategy (Pechtl, 2004). The general conclusion has been that deal-prone consumers seem to be concerned with immediate savings from reduced prices (Blattberg and Neslin, 1990) and they react positively to promotional tools based on price reductions.…”