Powered by OpenAIRE graph
Found an issue? Give us feedback
image/svg+xml art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos Open Access logo, converted into svg, designed by PLoS. This version with transparent background. http://commons.wikimedia.org/wiki/File:Open_Access_logo_PLoS_white.svg art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos http://www.plos.org/ University of Califo...arrow_drop_down
image/svg+xml art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos Open Access logo, converted into svg, designed by PLoS. This version with transparent background. http://commons.wikimedia.org/wiki/File:Open_Access_logo_PLoS_white.svg art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos http://www.plos.org/
Journal of Consumer Research
Article . 1992 . Peer-reviewed
Data sources: Crossref
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
versions View all 3 versions
addClaim

The Discounting of Discounts and Promotion Thresholds

Authors: Gupta, Sunil; Cooper, Lee G;

The Discounting of Discounts and Promotion Thresholds

Abstract

This study examines consumers' response to retailers' price promotions. It shows that consumers discount the price discounts. It also suggests that the discounting of discounts and changes in purchase intention depend on the discount level, store image, and whether the product advertised is a name brand or a store brand. The study goes one step further to investigate the existence of promotion thresholds. We use experimental data and an econometric methodology to gather empirical evidence that consumers do not change their intentions to buy unless the promotional discount is above a threshold level. This threshold point differs for name brands and store brands. Specifically, we find that the threshold for a name brand is lower than that for a store brand. In other words, stores can attract consumers by offering a small discount on name brands while a larger discount is needed for a similar effect for a store brand. The study also indicates the existence of a promotion saturation point above which the effect of discounts on changes in consumers' purchase intention is minimal. These results confirm consumers' S-shaped response to promotions.

Country
United States
Related Organizations
Keywords

Marketing, Psychology, Tourism

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    268
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 1%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 1%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
268
Top 1%
Top 1%
Top 10%
Green