Study on Consumer Preferences for Discount Presentations in Different Purchase Contexts

Purpose: There is still lack of guidance for merchants toward price discount presentations (absolute/relative), especially for consumers in different purchase contexts. Based on the general evaluability theory, this study investigates consumers' preferences for the presentation of discounts in various contexts through experiments. Research design, data and methodology: The relationship between discount presentation and consumers' preference is investigated in Study 1 using a two-factor between-subject design of 2 (purchase type: material vs. experiential) ×2 (discount type: absolute vs. relative). The Moderating effect of thinking mode has been examined in Study 2 via a multi-factor intergroup design of 2 (purchase type: material vs. experiential) ×2 (discount type: absolute vs. relative) ×2 (cognitive load: high vs. low). One-way ANOVA and planned contrast have been performed for analysis. Results: Experiment 1 reveals that consumers prefer absolute discounts rather than relative discounts when in material purchases. However, when in experiential purchases, they are willing to choose relative discounts. Experiment 2 verifies the boundary conditions of matching effect and illustrates the generation of matching effect is determined by thinking mode. Conclusions: Our study enriches the theories of purchase type and thinking mode. Simultaneously, the results provide practical guidance for merchants to formulate the discount presentation and distribution pricing strategies.