• The Journal of Asian Finance, Economics and Business
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• v.5 no.4
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• pp.101-105
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• 2018

Price discount is one of the commonly used promotion strategies to increase sales and revenue. If a discount is perceived before the purchase (i.e., pre-purchase discount), consumers are likely to perceive it as a potential gain. If it is noticed after making a regular-priced purchase (i.e., post-purchase discount), consumers may develop negative emotions and attitudes. Based on the rising transparency and omnipresence of price and discount information through web and mobile platforms, we attempt to tackle an understudied topic on the negative effect of post-purchase price discount. Specifically, post-purchase discount information may increase consumers' perception of monetary loss, which may affect consumers' decision to return the product, potentially increasing the operating costs borne by retailers. Based on a close scrutinization of the current market environment and previous academic literature, we suggest a novel conceptual framework to understand consumers' perception, attitude, and behavior (perception of loss, willingness to return) upon perceiving various formats of discount promotion (absolute value vs. percentage discount) posterior to the purchase of a product. We also look at the effect of price level (low-priced vs. high-priced). For marketing practitioners, we intend to suggest optimal promotion formats that can alleviate consumers' negative perceptions and prevent additional operation costs.

• The Journal of Information Systems
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• v.31 no.4
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• pp.209-232
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• 2022

Purpose In the current environment of online shopping, the cost for consumers to obtain the information they need is decreasing, and the price of products is becoming more transparent, leading to increased price competition among enterprises for similar products. Given the widespread usage of limited-time promotion as a marketing method for enterprises in the context of e-commerce, it is great meaning to study and reveal the internal influence mechanism of limited-time promotion on consumers' impulsive consumption. Design/methodology/approach Based on the S-O-R theory, this study constructs a model of consumers' impulsive consumption in the context of e-commerce from the perspective of perceived price discount, with evoking sense and pleasure as mediating variables and perceived time pressure as moderating variables. Findings The results show that perceived price discount has a significant positive impact on evoking sense and pleasure. Evoking sense has a significant positive impact on pleasure. Both evoking sense and pleasure have a significant positive impact on consumers' impulsive consumption. Meanwhile, perceived time pressure plays a significant moderating role between perceived price discount and evoking sense, between perceived price discount and pleasure, and between evoking sense and consumers' impulsive consumption. Finally, based on the above findings, this study provides effective suggestions for e-commerce participants in the formulation of limited-time promotion strategies.

• International Journal of Advanced Culture Technology
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• v.9 no.3
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• pp.106-111
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• 2021

Multiple sales promotions for one product can be simultaneously offered. For instance, marketers can offer a premium along with a price discount. In the present research, we primarily focus on offers containing both a bonus pack and a price discount. In particular, this research examines whether consumer evaluations of offers containing both a bonus pack and a price discount (i.e., BP + PD offers) vary according to consumers' saving orientation. Specifically, we predict that for consumers with strong (vs. weak) saving orientation, offers containing the high PD but low extra amount of BP will be more favorably evaluated than offers with a high extra amount of BP but low PD. A series of two experimental results show that consumers' saving orientation moderates their evaluations of BP and PD offers, which supports the prediction. The findings imply that marketers can evoke more positive consumer responses to BP and PD offers, considering individual differences such as saving orientation.

• Journal of Distribution Research
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• v.10 no.4
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• pp.1-22
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• 2005

The major objectives of this study are twofold. The first is to discover which in-store tactics influence store performance when a retailer implements category management in variety enhancer and fill-ins categories. The second is to analyze how and why specific in-store tactics achieve better or worse performance than other in-store tactics across categories. The data were collected using scanner data and direct observations in 'A' discount store which is one of the representative discount stores in Korea. The in-store tactics were measured by product assortment, temporary price discount, price and non-price promotion, and shelving. The store performance was measured by sales and gross margin return on inventory investmant(GMROI). Empirical results analyzed by multiple regression were as follows: In variety enhancer category, the significant factors affecting sales were product assortment, temporary price discount, price promotion, and shelving. Non-price promotion also influenced GMROI positively but product assortment impacted on GMROI negatively. In fill-ins category, the significant factors affecting sales and GMROI were product assortment and shelving. However, the other factors such as temporary price discount, price promotion, and non-price promotion had no significant influence on both sales and GMROI. This paper presents a number of theoretical and managerial implications of the empirical results and concludes by addressing limitations and future research directions.

• The Journal of Information Systems
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• v.28 no.4
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• pp.251-270
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• 2019

Purpose Unlike advertising through the traditional media targeting unspecified number of people, the base of mobile environment using smartphone has expanded so that many companies can classify prospective customers according to their purpose, thereby enabling efficient targeted marketing with low cost. Design/methodology/approach This study has investigated how can marketing strategy be influenced by the price promotion type (immediate discount/delayed discount) and message framing (positive/negative) according to time pressure (low/high). Hypotheses are set through the consideration of prospect theory, endowment effect, framing effect, regulatory-focus theory, and time-pressure theory. Findings The results and interpretation of this study are as follows. First, it was found that the influence of the delayed discount on the purchase intention was larger than the immediate discount. Second, negative/loss frame messages have more influence on purchase intention than positive/profit frame messages. Third, when the price promotion type is delayed discount, the effect of the promotion message on the purchase intention when it presented by negative/loss frame is greater than the other cases. The implication of this study is that it can be used as a basic data for establishing a strategy to maximize the effectiveness of promotions effectively considering potential buyers of mobile commerce environment.

• The Journal of Economics, Marketing and Management
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• v.4 no.1
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• pp.23-33
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• 2016

Sales promotion is defined as the short-term incentive to encourage the purchase or sale of products and services. Retailers conduct a variety of sales promotion to encourage the purchase or sale of products and services. It is often used to induce the purchase of customers in short term and to improve the relationship with customers in the long term. Many previous studies about the effect of price discount SP on increase in sales and image improvement have conducted. But the study of non-price promotion, especially SP with 'Gifts', meanwhile, has been seldom researched. This study is to investigate the effect of the Gift SP conducted by retailers on the customer evaluation of the product and its Gifts. This study is to investigate the effect of 'Gifts', among the non-price promotion, on the customer evaluation. First of all, previous studies about the effect (-) of Sp with 'Gifts' on the customer evaluation of the product and its Gifts, and the factors that offset the negative effect of SP with 'Gifts' on quality perception are to examined. In this study, additionally, the summary of the study based on the previous studies and the research subject in the future are to be presented. Firstly, to examine the previous researches on the effect of SP which retailers conduct on the increased sales and or enhanced image, price discount SP has attracted a lot of attention as a research subject but researches on non-price sales promotion, particularly on SP with gift have seldom conducted as a research subject. Secondly, in the previous studies relevant to Price Discount SP, the long-term negative (-) effect of the target product or brand of SP has been studied. However, a few researches on the long-term negative (-) effect of SP with gift have been conducted. Thirdly, it might be brand affinity and purchase limit that buffered the negative (-) effect on the perceived quality of SP with gift which retailers had conducted. In spite of various studies conducted by many researchers, each study have discussed the consequences under certain circumstances and integrated results of research have not been in progress. It may be the research issues left to us to clearly identify the psychological mechanism of consumers until the effect of SP happens in order to theorize SP and to present a practical and useful suggestion.

• Journal of Global Scholars of Marketing Science
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• v.20 no.2
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• pp.149-163
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• 2010

Previous studies have shown that retail price promotion change consumers' purchase behavior and that retailers use price promotion more frequently. Keeping constant the benefits received by consumers, there are several ways for retailers to communicate a price promotion. For example, retailers can present a price reduction in absolute terms ($, ${\euro}$), percentage terms (%), or some combinations of these two methods (Della Bitta et al. 1981). Communicating a price promotion in different ways is similar to the framing of purchase decisions (Monroe 1990). Framing effects refers to the finding that subjects respond differently to different descriptions of the same decision question (Frisch 1993). Thus, the presentation of the promotion has an impact on consumer deal evaluation and hence retail sales. In fact, much research in marketing attests to the effects of price presentation on deal perception (Lichtenstein and Bearden 1989; Urbany et al. 1988; Yadav and Monroe 1993). In this sense, a number of marketing researches have argued that deal perceptions are also determined by the degree to which consumers are able to calculate the discounts and final purchase prices accurately (Estelami 2003a; Morwitz et al. 1998), which suggests that marketers may be able to enhance responses to discounts by improving calculation accuracy. Consequently, since calculation inaccuracies in the aggregate lead to the underestimation of discounts (Kim and Kramer 2006), consumers are more likely to appreciate a discounted offer following deeper processing of price information that enables them to evaluate a price discount more accurately. The purpose of this research is to examine the effect of different presentations of discount prices on consumer price perceptions. To be more precise, the purpose of this study is to investigate how different implementations of the same price promotion (semantic and visual salience) affect consumers' perceptions of the promotion and their purchase decisions. Specifically, the analysis will focus on the effect of price presentation on evaluation, purchase intentions and perception of savings. In order to verify the hypotheses proposed in the research, this paper will present an experimental analysis dealing with several discount presentations. In this sense, a2 (Numerical salience presentation: absolute and relative) x2 (Worded salience presentation: novel and traditional) x2 (Visual salience: red and blue) design was employed to investigate the effects of discount presentation on three dependent variables: evaluation, purchase intentions and perception of savings. Respondents were exposed to a hypothetical advertisement that they had to evaluate and were informed of the offer conditions. Once the sample finished evaluating the advertisement, they answered a questionnaire related to price salience and dependent dimensions. Then, manipulation checks were conducted to ensure that respondents remembered their treatment conditions. Next, a $2{\times}2{\times}2$ MANOVA and follow-up univariate tests were conducted to verify the research hypotheses suggested and to examine the effects of the individual factors (price salience) on evaluation, purchase intentions and perceived savings. The results of this research show that semantic and visual salience presentations have significant main effects and interactions on evaluation, purchase intentions and perception of savings. Significant numerical salience interactions affected evaluation and purchase intentions. Additionally, a significant worded salience main effect on perception of savings and interactions on evaluation and purchase intentions were found. Finally, visual salience interactions have significant effects on evaluation. The main findings of this research suggest practical implications that firms should consider when planning promotion-based discounts to attract consumer attention. Consequently, because price presentation has important effects on consumer perception, retailers should consider which effect is wanted in order to design an effective discount presentaion. Specifically, retailers should present discounts with a traditional style that facilitates final price calculation. It is thus important to investigate ways in which marketers can enhance the accuracy of consumers' mental arithmetic to improve responses to price discounts. This preliminary study on the effect of price presentation on consumer perception and purchase intentions opens the line of research for further research. The results obtained in this research may have been determined by a number of limiting conceptual and methodological factors. In this sense, the research deals with a variety of discount presentations as well as with their effects; however, the analysis could include additional salience dimensions and effects on consumers. Furthermore, a similar study could be carried out including a larger, more inclusive and heterogeneous sample of consumers. In addition, the experiment did not require sample individuals to actually buy the product, so it is advisable to compare the effects obtained in the research with real consumer behavior and perception.

• Fashion & Textile Research Journal
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• v.15 no.4
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• pp.543-553
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• 2013

This study analyzes the influence of price, product and promotion on clothing impulse buying according to internet shopping mall type. This study conducted a survey of 346 male and female consumers in their 20s-40s who have experienced clothing impulse buying from an internet shopping mall. Respondents were selected using convenience sampling through an online survey conducted in August 2012. For statistical analysis, descriptive statistics, reliability analysis, $X^2$-test, factor analysis, and regression analysis where carried out using SPSS for Windows 12.0. The results were as follows. First, there were significant differences for consumer gender, age, marital status, and education on clothing impulse buying according to shopping mall type. Second, there were differences for the influence of each component (price, product and promotion) on clothing impulse buying according to shopping mall type. Third, it was identified that influence of components (price, product and promotion) on clothing impulse buying were in the following order: low price, freshness, prize promotion, scarcity, open market price discount, prize promotion, freshness, fashionability, low price in general shopping malls, payment term benefit, freshness, and scarcity in fashion SOHO shopping malls. This study provides information for consumer management and promotion strategies according to each shopping mall type by understanding clothing impulse buying by consumers and factors according to shopping mall type.

• Journal of Distribution Science
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• v.12 no.10
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• pp.123-128
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• 2014

Purpose - The purpose of the study is to reexamine the price fairness as practiced by low cost airlines, as a consumer has to experience such inconveniences as inferior airport transportation, extra fees on in-flight meals, and non-negotiable seats, and consumers evaluate such experiences keeping in mind their total costs. This evaluation includes price fairness and allows a reasonable and overall consideration of factors of low cost airlines. It tries to set up a measurement of the indicators consumers' perceptions of price fairness academically as it adapts price fairness to airline services which are renowned for price volatility. Research design, data, and methodology - The research proposes an alternative pricing strategy for the long term profit of low cost airlines after going over conflicts between the traditional theory of consumers' price perception mechanism and flexible fair policy of low cost airlines. It was meaningful when it relates to the early stage of the business, while it enhances the risks relating to the long term survival of low cost airlines. In addition, it is significant as it highlights the negative influences on consumers' perceptions of price fairness, as low cost airlines run on extremely low cost perspectives. Results - The results of the research provide insight into four perspectives, as consumers' perceptions of price fairness are influenced by the frequency and range of price changes and services. The first perspective is that it would lead to positive price evaluation when a low cost airline cuts prices frequently with little changes than one big change. It also would lead to the same result when it comes to necessary services. The second perspective is that one big increase of price would rather undermine the negative aspects of price changes than those of several smaller ones. The third perspective is that additional services would be good to consumers' perceptions of price fairness as compared to discount benefits with respect to the cost. Finally, a low cost airline should consider that consumers will change airlines or defer their flight schedule if the flight fares increase beyond their limits. Conclusions - Low cost airlines should reconsider their pricing policies for services that were provided free earlier. A consumer would not like discount benefits when made to pay for services that were, for long, free of charge. If a low cost airline can provide services with no charge, it should improve volumes if the costs are standardized and, moreover, should consider the charging fees. Alternatively, a consumer can choose between services and fair discount. Low cost airlines are implementing sales promotion strategies, as the competition is more intense than it used to be. In these days, they should regard services over sales promotion, as consumers may prefer to spend money on good premium services. Some differentiation in services could create a good market position for the airlines and, hence, good financial performance.

• Journal of Digital Convergence
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• v.12 no.10
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• pp.135-144
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• 2014

This study examined whether there is difference in consumers' product attitude according to the type of buying behavior values and the type of price discount among their lifestyle. First, the factors of values comprising consumers' buying behavior were derived as frugal buying, impulse buying, quality buying, and principle buying. Cluster analysis showed that the types of buying behavior value included high quality impulse buying, reasonable buying and practical buying. Second, it was found that there were differences in product attitude according to the type of consumers' buying behavior values. Third, interaction effect was found between the type of price discount and consumers' product attitude according to the type of buying behavior values. Fourth, among the factors of value comprising consumers' buying behavior, frugal buying factor has an effect on the product attitude with price discount of 50% and quality buying and impulse buying factors have an effect on the product attitude with bundle price discount (1+1). The above mentioned result of study suggests that when a company establishes a strategy of price discount, it should consider sales promotion strategy taking account of consumers' buying behavior values and type of product price discount.