Using consumer-perceived risks to set optimal discount levels

Jensen, Marlene; Drozdenko, Ronald

doi:10.1504/ijrm.2008.020725

Cited by 4 publications

(2 citation statements)

References 7 publications

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“…Regarding the measurement of the willingness to pay, we used the method of Jensen and Drozdenko [ 66 ], in which the subjects were asked to answer the question: “Please give the lowest acceptable discount you would like to buy this product in the range of 0–100%” to measure their willingness to purchase the study product, which, thus, reflects their decision preferences (0% means they want to buy the product even if there is no discount; 100% means they do not want to buy the product even if it is completely free).…”

Section: Studymentioning

confidence: 99%

The Effect of Perfectionism on Consumers’ Intentions to Purchase Imperfect Products

Chen

Wang

et al. 2023

Behavioral Sciences

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Perfectionism is an important personality trait that affects people’s behavior, especially consumption behavior. In our study, we aimed to investigate whether perfectionists show different preferences in their consumption choices compared with non-perfectionists and to explore the potential psychological mechanisms mediating this effect. Through four studies, we found that perfectionists are less likely to buy imperfect products, including those that are close to expiry and that have defective functioning, flawed appearance, and incomplete after-sales service than non-perfectionists, and are more likely to avoid choosing imperfect products. In addition, we found a mediating effect of dichotomous thinking and intolerance of uncertainty on this effect to explain the behavioral preferences of perfectionists in their purchasing choices. Manufacturers and marketers can benefit from the results of this study by implementing targeted production requirements and marketing strategies based on the consumer behavior preferences of perfectionists.

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Section: Studymentioning

confidence: 99%

The Effect of Perfectionism on Consumers’ Intentions to Purchase Imperfect Products

Chen

Wang

et al. 2023

Behavioral Sciences

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“…Moreover, Möller and Watanabe (2009) show how, in a monopolistic market for which consumers face individual demand uncertainty but rationing risk is low (the risk of not getting a product at the last minute), a monopolistic firm will use advance purchase strategies in order to increase its profits. In the opposite case, the best strategy for a monopolistic firm will be clearance sales -see Jensen and Drozdenko (2008) in order to obtain some empirical evidence on this subject.…”

Section: Introductionmentioning

confidence: 99%

Advanced sales and competition in a service industry

Carreras-Simó

2016

IJRM

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This paper analyses the relationship between a firms' interest in advance sales and the competition intensity in the market when consumers adopt a strategic behaviour in purchasing. We demonstrate how firms in a more competitive market have more incentives to offer advance sales. When a firm increases their advanced sales, the profits of last-minute sales go down; therefore, a firm will aim to sell in advance until the expected profit on the margin for advanced sales equals the marginal profit lost for last-minute sales. When competition goes up, the marginal profit lost at last-minute market for increase advanced sales goes down, so it is in the firms' best interest to increase advanced sales and to decrease last-minute sales. Therefore, competition encourages advanced sales.

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