• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.17-27
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• 2009

Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

• 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.

• The Journal of Economics, Marketing and Management
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• v.8 no.3
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• pp.9-21
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• 2020

Purpose: Previous literature shows that a price promotion serves as a negative cue of product quality especially when consumers have no additional information about the product's other attributes. In this research, we explore how the effect of price promotions on consumers' perceptions of product quality changes depending on their ability to compare promoted product attributes with competitive products' attributes. Research design, data and methodology: Specifically, we use a series of scenario-based lab experiments using different types of products and explore if attribute alignability among competing products in a consumer's choice set influences consumers' ability to compare the product attributes and perceived quality. Results: Our study findings show that high attribute alignability among products makes consumers easier to compare the product attributes and thereby focus more on non-price information than price information. We also show that attribute alignability serves as a moderator and decreases perceived quality when the promotion level is higher. Therefore, the attribute alignability weakens the negative impact of a price promotion on consumers' perceived product quality. Conclusions: Our study findings provide new insights on how to implement price promotion strategies while keeping products' perceived quality, by considering the product's relationships with competing products in a choice set.

• Information Systems Review
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• v.22 no.3
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• pp.143-156
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• 2020

Price promotion is one of the most frequently marketing strategies with a long history. According to various studies, the effect of price promotion is controversial. Some studies have argued that price promotion has a positive effect, while others have found that it has no effect or rather has a negative effect. This study aims to examine the effect of price promotion in a subscription-based service. First, we check the effect of price promotion on the repurchase of the consumer. And we investigate how this effect varies depending on the characteristics of the consumer. Using the data from one of the music streaming service in South Korea, the effect of consumers' price promotion experience, demographic characteristics, and behavioral characteristics on their repurchase is analyzed through logistic regression analysis. As a result of the study, it is found that consumers' experience of price promotion has a positive effect on repurchase. In addition, the positive effect of price promotion is relatively greater in younger and female consumers. This study has implications in that it not only confirmed the positive effect of price promotion in a subscription-based environment but also empirically confirmed that the characteristics of consumers should be considered when performing price promotion.

• 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.

• Journal of Distribution Science
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• v.14 no.10
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• pp.117-126
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• 2016

Purpose - Color is perceived to have an effect on humans' cognition and behavior because of its association with specific concepts. Since there are few studies linking color and price presentation, we investigated a constrained condition of consumers' regulatory focus and involvement. Research design, data, and methodology - We performed a 2 (color: red vs. black) × 2 (regulatory focus: prevention vs. promotion) × 2 (involvement: high vs. low) test of our hypothesis. The target product was a portable data storage device (USB) and data from 165 respondents were analyzed. Each condition had two stages. In the first, product information and price were presented. After reviewing the product information, respondents evaluated price attractiveness. In the second stage, respondents filled out regulatory focus and involvement questionnaires. The main variables were color, regulatory focus, and involvement. Therefore, we ran a three-way ANOVA (Analysis of Variance) to test our hypothesis. Results - When the price was red (vs. black), consumers perceived the red price as more attractive than the black price. However, this effect varied by situation. Specifically, in the low involvement condition among prevention-focused consumers, when the price was in red, price attractiveness was higher than when the price was in black. However, for promotion-focused consumers, there was no difference in the price color effect. In the high involvement condition, promotion-focused consumers showed stronger price attractiveness for the red price than the black price. However, the effect of price color diminished for prevention-focused consumers. That is, prevention-focused consumers did not reveal a different price perception between red versus black in the high involvement condition. Conclusions - This research contributes by academically linking the effects of color to price attractiveness, and focusing on the interaction of regulatory focus and involvement. When involvement is low, the effect of red disappeared for promotion-focused consumers, whereas the same happened for prevention-focused consumers under the condition of high involvement.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.451-455
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• 2021

This research seeks to find out how to provide satisfaction to consumers. The aim is to analyze and test empirically the effect of price and sales promotion on customer satisfaction that is mediated by service quality. This study uses primary data; questionnaires are distributed to 100 consumers at the Jingga Project boutique. The sampling technique uses simple random sampling. The data were collected using a questionnaire measured by a Likert scale with analysis tools using Warp PLS 7.0. The results showed that the variables price and sales promotion have a positive effect on customer satisfaction. Furthermore, the mediating variable, namely, service quality, is proven to be able to indirectly mediate the effect of price and sales promotion on customer satisfaction. In line with the marketing theory, which states that customer satisfaction is the feeling of pleasure or disappointment of someone who appears after comparing the performance (results) of the product against the expected performance. From the results of this study, it is clear that the variables price and sales promotion significantly affect customer satisfaction, as well as service quality, which is the mediating variable in this study. Service quality indirectly or partially mediate the effect of price on customer satisfaction.

• 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 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 Distribution Science
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• v.20 no.5
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• pp.35-47
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• 2022

Purpose: To explain the effect of product quality, price perception, online distribution, and social media promotion on attitudes, customer satisfaction, and local brand love. Research design, data and methodology: The population of this study are Indonesians who have purchased local Indonesian brand products. The size of the sample used was 240 people with purposive sampling method. The analytical technique used is Path Analysis using SEM-PLS. Results: product quality, price perception, online distribution have a positive effect on attitudes, but social media promotion has a positive and insignificant effect on consumer attitudes; product quality, price perception, online distribution, and social media promotion have a positive and significant effect on customer satisfaction, and attitudes have a positive and significant effect on local brand love; and customer satisfaction has a positive effect on brand love for local brands. Conclusion: Therefore, it is important for local brand product businesses to pay attention to product quality, price perception, online distribution, and social media promotion in order to be able to build positive attitudes, customer satisfaction and ultimately have an impact on local brand love. In online distribution, with online distribution, it is easy for marketers to deliver multimedia content through online methods.