Price Promotion for Emotional Impact

Abstract

Managers and academics often think of price promotions merely as incentives that entice consumers to accept offers that they might not have considered otherwise. Yet the prospect of paying a lower price for a product of given quality can also discourage deliberation, in a sense "dumbing down" the purchase encounter by making it less consequential. The authors examine this possibility in a dual-system theory of consumer behavior. Specifically, they argue that price promotion lowers a consumer's motivation to exert mental effort, in which case purchase decisions are guided less by extensive information processing and more by a quicker, easier, strong conditioner of preference: affect. Field data from a large daily deal company and four controlled experiments support this idea and document its implications primarily for product choice, in turn providing insight into the form and cause of brand switching that manufacturers and retailers can leverage to improve the allocation of promotional budgets and category management.

Does firm performance increase with risk-taking behavior under information technological turbulence?

“…Pricing capability becomes one of the primary determinants of firm performance (Homburg et al, 2012), reflects firms' expectation that customers' intention to experience a new product regardless of the price paid (Lukas et al, 2013). The behavior is about how to deal with consumers, who may be unemotional about cost in the purchase decision (Aydinli et al, 2014). Pricing capability with the inclusion of transfer payments may allow firms to establish more competitive prices to attract higher quality partners or conversely (Mindruta et al, 2016):…”

Pengaruh Kemasan Dan Harga Terhadap Keputusan Pembelian Produk Sayuran Hidroponik

“…Harga suatu produk mengandung pengertian adanya kemampuan yang dimiliki oleh seorang pembeli untuk membeli produk tersebut. Menurut Aydinli et al (2014) para produsen harus mencoba membujuk pembeli untuk menggunakan produk yang berkualitas secara permanen dan harus menjual kualitas melalui fitur harga. Hal ini diperlukan untuk meyakinkan pembeli bahwa membeli produk sebanding dengan harganya.…”

Website Interactivity and Promotional Framing on Consumer Attitudes Toward Online Advertising: Functional versus Symbolic Brands

“…Sale promotion is a common method for providing incentives to consumers (Aydinli et al 2014;Gong et al 2015;Yi and Yoo 2011). There are many sale promotion tools such as price discounts, in-store demonstrations, coupons, sweepstakes and games, and premium (Shi et al 2005).…”