How sales promotion display affects customer shopping intentions in retails

Abstract

PurposeThe purpose of this paper is to examine the impact of sales promotion display on customer intentions to purchase and repurchase, focusing on the moderating roles of perceived product quality and price fairness.Design/methodology/approachThis study employs a descriptive, quantitative, non-experimental research method using a cross-sectional design with a self-administered questionnaire. In total, 415 department store customers responded to the survey through an online research panel provider in Australia.FindingsThe results indicated that sales promotion display significantly affects the purchase and repurchase intentions. The findings also highlight the moderating role of perceived product quality and price fairness on customer shopping intentions. Lastly, it is confirmed that the joint moderating effects of perceived product quality and price fairness in the relationship between sales promotion display, purchase and repurchase intentions are significant.Practical implicationsBased on the study findings, managers could drive customer purchase and repurchase intentions using suitable visual objects in sales promotion and their appropriate in-store placement.Originality/valueThe present study introduced sales promotion display as a new dimension of store physical environment. This is the first study to investigate the relationship between sales promotion display and customer shopping intentions and incorporates customers' cognitive perceptions of price and quality in the conditioned effect of sales promotion display on shopping intentions. Moreover, this study brings up new insight into retailing literature by applying the classical conditioning theory in examining the links between sales promotion display and customer shopping intentions.

Factors Influencing Online Shoppers to Shop at Marketplace or Website: A Qualitative Approach

“…If the promotional price is high, it makes consumers save more, making them more likely to buy goods or services (Tzeng et al, 2021). Previous research has also demonstrated the critical impact of customer buying decisions on sales promotion through discounts and cost reduction (Gorji and Siami, 2020).…”

When and whom should retailers offer price reductions in times of crisis?

“…Researchers have investigated price reductions and their impact on consumers' decisions for a long time (Compeau and Grewal, 1998;Hardesty and Bearden, 2003;Mazumdar et al, 2005;Palazon and Delgado-Ballester, 2009). Even in the recent past, there has been plenty of research on how price promotions impact various aspects of consumer behaviour (Abdul, 2018;Gorji and Siami, 2020;Guha et al, 2018;Hardesty and Bearden, 2003;Jha et al, 2019;Kim and Lee, 2020;Mukherjee et al, 2017). While this stream of research has advanced our understanding of price promotions and consumer behaviour in general, little is known about the right timing to offer discounts during times of crisis.…”

“…Given the popularity of price discounts as a tactic to stimulate demand, there is a rich literature on the impact of price reductions on various aspects of consumer behaviour. This stream of literature has investigated the impact of price promotions on various aspects of consumer behaviour, such as shopping intentions (Gorji and Siami, 2020), evaluation of new products (Abdul, 2018; Jha et al. , 2019; Mukherjee et al.…”

Millennials and repurchasing behaviour: a collectivist emerging market

“…Indeed, the higher the level of customer satisfaction, the greater is the repurchase intention (Gorji and Siami, 2020;Balaji et al, 2017). It can be argued, therefore, that customer service expectation is dependent on the customer's background because people in different cultures perceive services differently (Ladhari et al, 2011).…”

“…The interaction between staff and customers can be decisive as regards generating customer satisfaction (Arora et al, 2020) and is influential in terms of customer service expectation. Indeed, the higher the level of customer satisfaction, the greater is the repurchase intention (Balaji et al, 2017;Gorji and Siami, 2020). It can be argued, therefore, that customer service expectation is dependent on the customer's background because people in different cultures perceive services differently (Ladhari et al, 2011).…”