The effect of permanent product discounts and order coupons on purchase incidence, purchase quantity, and spending

Liu, Huan; Lobschat, Lara; Verhoef, Peter C.; Hong, Zhao

doi:10.1016/j.jretai.2020.11.007

Cited by 18 publications

(9 citation statements)

References 55 publications

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“…The moderating roles of sales promotions and customer type Sales promotions are popular because they play a crucial role in increasing restaurant sales and attracting new customers (Mathe-Soulek et al, 2016); this suggests that promotions are related to behavioral intentions (Liu et al, 2021). This study focuses on two specific types of sales promotions: price discounts and coupons.…”

Section: 6mentioning

confidence: 99%

Perceived price and trustworthiness of online reviews: different levels of promotion and customer type

Liu

2022

IJCHM

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Purpose Prior hospitality studies have reviewed review trustworthiness and perceived price as predictors of restaurant selection. However, the impacts of these two factors may vary by sales promotion and customer types. This study aims to determine whether sales promotions and customer type are the key elements that facilitate behavioral intentions by moderating the linkage between perceived price and behavioral intentions as well as the linkage between online review trustworthiness and behavioral intentions. Design/methodology/approach Analysis of the responses of 533 individuals familiar with the Michelin Guide for restaurants in Seoul provided evidence supporting a sales promotion theory wherein promotions signal benefits in consumers’ minds. Findings The findings show that when perceived price is positive and the trustworthiness of online reviews is high, repeat customers prefer mixed coupons to price discounts. Notably, the results indicate that when the trustworthiness of online reviews is high, first-time customers also prefer mixed coupons to price discounts. Furthermore, the findings suggest that negative evaluations of perceived price increase the impact of mixed coupons by signaling to first-time customers that given restaurants’ offerings provide monetary benefits regardless of their intentions to revisit said restaurants. Research limitations/implications The study findings provide insights that should help managers better understand various levels of promotion. Managers can design their pricing strategies to strengthen customers’ motivations to visit their restaurants – the very thing customers often seek in sales promotions. Originality/value This study provides indisputable evidence for a sales promotion theory, wherein promotions signal benefits in consumers’ minds; however, it also shows that first-time and repeat customers do not respond equally to sales promotions.

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Section: 6mentioning

confidence: 99%

Perceived price and trustworthiness of online reviews: different levels of promotion and customer type

Liu

2022

IJCHM

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“…Previous research has found the double-edged effect of PDI on consumer expenditure (Montazeri et al ., 2021). Therefore, some scholars have suggested that retailers should offer relatively high permanent PDI to attract customers to spend and buy more (Liu et al ., 2021). Moreover, recent research on live streaming has suggested that the discount coupons provided by streamers can appropriately build a positive relationship between customers and streamers (Guo et al ., 2021).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Effects of intrinsic and extrinsic cues on customer behavior in live streaming: evidence from an eye-tracking experiment

Chen,

Tong,

Yang

et al. 2023

IMDS

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PurposeThis study aims to explore how specific cues with new manifestations (i.e. herding message and price discount information) and customer cognitive style influence attention allocation and purchase intention.Design/methodology/approachTo empirically validate the research hypotheses, an eye-tracking experiment with a 2 × 2 × 2 mixed design was conducted on a sample of 44 participants recruited from a university in China. Repeated measures analysis of variance was employed for data analysis.FindingsThe results show that herding message and price discount information play different roles in viewers' attention and have an interactive effect on attention. Moreover, individual cognitive styles moderate the impact of herding message on attention allocation. Still, two cues positively affect customer purchase intention.Originality/valueThis study guides future research by applying cue utilization theory to investigate the effects of two cues in live streaming. Findings offer practical implications for how live streaming cues affect viewers' attention allocation and purchase intention.

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“…Research on promotion has mainly focused on understanding the effect of various promotional tactics, such as product type and coupon redemption time (Wang and Huang, 2019); the complimentary effect of loyalty programs and location-targeting effects (Gabel and Guhl, 2021); different promotional methods, such as game-based and survey-based coupons (Kim and Song, 2020); comparative effects among manufacturers' coupons, retailers' national brand coupons and retailers' private label coupons (Bauner et al, 2019); location-based coupons (Beeck and Toporowski, 2017;Kim and Song, 2020;Luo et al, 2021) and temporal effects of redemption likelihood (Gupta et al, 2021), with less emphasis on the enduring influence of perceived value that affects mobile promotion. However, mobile promotion does not always generate the desired result (Liu et al, 2020). Are monetary savings the only factor that affects how consumers respond to mobile promotion?…”

Section: Introductionmentioning

confidence: 99%

“…, 2021), with less emphasis on the enduring influence of perceived value that affects mobile promotion. However, mobile promotion does not always generate the desired result (Liu et al. , 2020).…”

Section: Introductionmentioning

confidence: 99%

Values that drive desire: examining determinants of mobile promotion satisfaction

Hsieh

Lee²

2022

IJRDM

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PurposeMobile promotion has become an important and popular mechanism for mobile commerce, with many companies using this approach to increase sales and drive brand satisfaction toward the use of mobile apps. Despite the crucial nature of this topic, knowledge on the value of mobile promotion remains insufficient. Drawing upon consumption value theory (CVT), this study aims to examine the underlying mechanism that drives app satisfaction and in-app purchase.Design/methodology/approachIn this research, the authors selected retail mobile apps for empirical testing. The authors recruited 476 users to complete a survey and analyzed the results using partial least squares structural equation modeling.FindingsThe results revealed that functional (monetary savings and localization), social (self-expression), emotional (entertainment), epistemic (exploration) and conditional (personalization) value increase the desirability of mobile promotion, thereby facilitating app satisfaction and in-app purchase.Originality/valueAmid the vast business opportunities of mobile commerce, numerous brands have developed mobile apps that function as platforms for the promotion, provision and purchase of products and services. With the prevalence of mobile app downloads, apps have become the primary mobile platform for conducting mobile promotion. This research contributes to the literature and offers retailers insight into how to create value that can increase app satisfaction and in-app purchasing through mobile promotion.

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The effect of permanent product discounts and order coupons on purchase incidence, purchase quantity, and spending

Cited by 18 publications

References 55 publications

Perceived price and trustworthiness of online reviews: different levels of promotion and customer type

Perceived price and trustworthiness of online reviews: different levels of promotion and customer type

Effects of intrinsic and extrinsic cues on customer behavior in live streaming: evidence from an eye-tracking experiment

Values that drive desire: examining determinants of mobile promotion satisfaction

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