Buy four get 30% off: how consumers respond to missing a quantity discount

2015 ◽  
Vol 49 (7/8) ◽  
pp. 1326-1342 ◽  
Author(s):  
Wen-Hsien Huang ◽  
Chun-Ming Yang

Purpose – This paper aims to examine how consumers evaluate and respond after failing to receive the promotional price for a quantity discount because the minimum purchase requirement (MinPR) is out of reach. Although quantity discounts are effective in terms of increasing sales volume, the outcome of using them is not always positive. Design/methodology/approach – Two 2 × 2 experiments are carried out to test the research hypotheses in the context of apparel shopping. Findings – The results of Experiment 1 demonstrate that offering quantity discounts with a high MinPR (e.g. “4 for 30 per cent off”) can result in greater willingness to buy (WTB) a single product at the full price than offering promotions with a low MinPR (e.g. “2 for 30 per cent off”) in the wake of a missed quantity discount. In other words, the purchase quantity has a positive effect on the consumers’ WTB even when they are not able to take advantage of the discount. However, this relationship weakens when the selection of discounted items is limited (i.e. the scope of the promotion is narrow). The results of Experiment 2 reveal that when the missed quantity discount is based on dollars rather than on the number of pieces (e.g. “Buy $100, get 30 per cent off” vs “Buy four pieces, get 30 per cent off”), the effect of purchase quantity on WTB is enhanced. Finally, perceived closeness of purchase outcome to the MinPR mediates the effect of purchase quantity on WTB. Research limitations/implications – To maximize internal validity, hypothetical scenarios were used as stimuli rather than an actual consumption experience, and the setting involved only a single product category (clothing). Future work including other types of merchandise and a more natural setting is needed to generalize our findings. Practical implications – The purchase quantity or MinPR serves as a reference point that influences consumers’ purchase decisions, even those who do not buy enough to qualify for the price reduction. Our findings suggest that retailers should specify a relatively high MinPR for quantity discounts. In addition, proper selection of the promotional scope and discount base will significantly improve consumers’ behavioral reactions when they are not able to take advantage of a quantity discount. Originality/value – The primary contribution of this article to the marketing literature is that it provides empirical results that shed some light on the situational influences that missing a quantity discount has on the consumer’s WTB a single product at the regular price, and what the mechanisms for the purchase quantity effect might be.

2014 ◽  
Vol 18 (1) ◽  
pp. 194-215 ◽  
Author(s):  
Sajjad M. Jasimuddin ◽  
Con Connell ◽  
Jonathan H. Klein

Purpose – The purpose of this paper is to empirically study transfer mechanisms of technological knowledge, and to explore the interplay among the factors that influence the choice of a mechanism. Design/methodology/approach – This paper reports on a qualitative case study designed to explore the reasons underlying the selection of intra-organizational knowledge transfer mechanisms. This research was carried out as an exploratory case study, which allowed one to observe the phenomenon in a natural setting. Findings – The results of the present study indicate the interplay between the factors, and link the factors in a sequence that help decide a mechanism. A decision to select a mechanism depends upon several variables; some of them override others, others are interlinked, and sometimes there is a causal link. Research limitations/implications – It is based on a sample of employees that may not be representative of the broader population. Since the samples were drawn only from a MNC, the results may not be generalised. The case study method which was employed in this research does not permit the generalisation of the results. Originality/value – The knowledge transfer literature has discussed the mechanisms used to transfer technological knowledge, but has failed to adequately address the rationale behind the selection of an appropriate knowledge transfer mechanism. The extant literature has isolatedly identified factors that impact on the choice of knowledge transfer mechanism. These issues are not effectively addressed in prior research. The findings are summarized diagrammatically in the form of a decision tree which provides a conceptualization of the decision processes involved in the selection of the medium for knowledge transfer.


2017 ◽  
Vol 34 (2) ◽  
pp. 119-131 ◽  
Author(s):  
Kaisa Kivioja

Purpose This study aims to examine the impact of olfactory cues at the point of purchase on consumers’ purchase behavior in terms of sales. Design/methodology/approach The theory of semantic congruence and sensory marketing on consumer behavior is tested using data collected through an experiment and analyzed using quantitative methods. Findings The presence of an olfactory cue has a positive impact on purchase behavior, as measured by product and product-category sales. Results indicate that a more common, category-congruent scent is optimal, as opposed to product-congruent, differentiating scent, even for a single product. Practical implications The findings encourage retailers to implement scents at the point of purchase as a sales promotion tool. Targeting a product category, instead of a single product, would seem the most feasible target scope. Originality/value This paper studies sensory marketing and cue congruence in a real-life retail setting, measuring the impact in terms of sales, and not only in relation to purchase intentions or brand image. Addressing a precisely defined target that suits retailing, namely, a single product and product category, is also novel, contrasting with earlier studies focused on ambient scents in large environments.


2016 ◽  
Vol 33 (5) ◽  
pp. 376-386 ◽  
Author(s):  
Iman Naderi ◽  
Audhesh K. Paswan

Purpose This study aims to investigate how narcissistic consumers perceive and respond to variations in price and store image in retail settings. Design/methodology/approach The data for this study were collected from a sample of 248 respondents who participated in an experiment with a 2 × 2 × 2 between-subjects design. Findings The findings show that while narcissists and non-narcissists do not differ in their perceptions of product quality, they show completely different behavioral intentions. For instance, narcissistic consumers ascribe more importance to store image than to product price, whereas price is more critical in non-narcissists’ decision-making. Research limitations/implications Using a young sample and only one product category (i.e. clothing) may affect the generalization of the findings. The inherent drawback of experiments (i.e. gaining internal validity at the cost of external validity) is another limitation of this work. Practical implications The construct of narcissism plays a critical role in the way people evaluate products’ symbolic value and ultimately decide to purchase goods from a store which has a certain type of image, including the expected price of the merchandise. Therefore, the findings of this study have significant managerial implications for critical areas of retail business such as segmentation using narcissism, store image management and merchandise pricing. Originality/value Despite a long history in social and clinical psychology, few empirical studies have examined narcissism and its impact on consumer behavior. The present study is an attempt to address this gap in retail settings and provides insights into the joint effects of product price and store image on narcissists’ purchase behavior.


2019 ◽  
Vol 121 (6) ◽  
pp. 1203-1219 ◽  
Author(s):  
Pia Carreño ◽  
Andres Silva

Purpose The purpose of this paper is to explore fruit and vegetable (FV) procurement disparity across income groups. Design/methodology/approach This study uses mean comparison and quintile regression to explain FVs variations. Findings Households from the highest income quantile spend more than two times on FVs than households from the lowest quantile; however, this expenditure disparity is largely mitigated in terms of purchase quantity. This paper presents evidence that, rather than quantity discounts or income neighborhood, the type of store (traditional markets vs supermarkets) plays a relevant role in explaining the smaller gap in terms of purchase quantity. Research limitations/implications Traditional markets help low-income households access low-cost FVs. Social implications The authors generate evidence to show that traditional markets play a relevant role to supply affordable FV to low-income households. Originality/value The paper used a high-quality and uncommon data set. It is a topic of high social impact.


Kybernetes ◽  
2019 ◽  
Vol 49 (4) ◽  
pp. 1083-1102
Author(s):  
Georgios N. Aretoulis ◽  
Jason Papathanasiou ◽  
Fani Antoniou

Purpose This paper aims to rank and identify the most efficient project managers (PMs) based on personality traits, using Preference Ranking Organization METHod for Enrichment Evaluations (PROMETHEE) methodology. Design/methodology/approach The proposed methodology relies on the five personality traits. These were used as the selection criteria. A questionnaire survey among 82 experienced engineers was used to estimate the required weights per personality trait. A second two-part questionnaire survey aimed at recording the PMs profile and assess the performance of personality traits per PM. PMs with the most years of experience are selected to be ranked through Visual PROMETHEE. Findings The findings suggest that a competent PM is the one that scores low on the “Neuroticism” trait and high especially on the “Conscientiousness” trait. Research limitations/implications The research applied a psychometric test specifically designed for Greek people. Furthermore, the proposed methodology is based on the personality characteristics to rank the PMs and does not consider the technical skills. Furthermore, the type of project is not considered in the process of ranking PMs. Practical implications The findings could contribute in the selection of the best PM that maximizes the project team’s performance. Social implications Improved project team communication and collaboration leading to improved project performance through better communication and collaboration. This is an additional benefit for the society, especially in the delivery of public infrastructure projects. A lot of public infrastructure projects deviate largely as far as cost and schedule is concerned and this is an additional burden for public and society. Proper project management through efficient PMs would save people’s money and time. Originality/value Identification of the best PMbased on a combination of multicriteria decision-making and psychometric tests, which focus on personality traits.


2019 ◽  
Vol 121 (7) ◽  
pp. 1550-1564 ◽  
Author(s):  
Rafaela Corrêa Pereira ◽  
Michel Cardoso de Angelis-Pereira ◽  
João de Deus Souza Carneiro

Purpose The purpose of this paper is to analyse the packaged food market in Brazil by examining the use of nutrition and health claims and marketing techniques, as well as the different levels of industrial food processing in relation to product category, nutrition information and price. Design/methodology/approach A survey was conducted on the labels of pre-packed foods and non-alcoholic beverages marketed in a home-shopping website in Brazil. Findings The authors showed that the use of nutrition and health claims on packaged foods in Brazil is widespread and varied across different food categories. Marketing techniques were also prevalent, and techniques emphasising general health, well-being or naturalness were the most frequent type used. Overall, products carrying nutrition and health claims and/or using marketing techniques had lower content of fat and higher content of fibre. However, the high prevalence of these strategies in ultra-processed foods is alarming. The presence of health claims and use of marketing techniques was not found to be an effective modifier of the three price measures. However, processed and ultra-processed foods were more expensive than unprocessed foods when considering price per energy and price per 100 g or mL. Originality/value These results indicate that there are clear opportunities to improve the packaged food environment in supermarkets. It is important to highlight the need to develop public policies to address these issues, including restriction of the promotion and advertising of unhealthy foods and beverages and use of warning labels.


2015 ◽  
Vol 16 (1) ◽  
pp. 50-70 ◽  
Author(s):  
Jakob Cakarnis ◽  
Steve Peter D'Alessandro

Purpose – This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card. Design/methodology/approach – This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals. Findings – In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse. Originality/value – This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.


2016 ◽  
Vol 8 (4) ◽  
pp. 504-510
Author(s):  
Gunjan M. Sanjeev ◽  
Richard Teare

Purpose The paper aims to profile the theme issue of Worldwide Hospitality and Tourism Themes titled “How is the need for innovation being addressed by the Indian hospitality industry?” with reference to the experiences of the theme editor, contributors from the industry and academia and the theme issue outcomes. Design/methodology/approach The paper uses structured questions to enable the theme editor to reflect on the rationale for their theme issue question, the starting-point, the selection of the writing team and material and the editorial process. Findings It highlights recent innovations that have taken place in the Indian hospitality industry especially in the areas of customer service, cost competitiveness, culinary management, revenue management and technology. Practical implications As hotel sector investment in India intensifies, this theme issue will be of interest to hoteliers, policy makers, analysts and others interested in the role that innovation can play in helping to facilitate differentiation between competing hotel products and services. Originality/value There is limited literature available on industry innovations in the Indian context. All the papers in this theme issue were written after several cycles of interaction between academics and practitioners and so they incorporate real–time, relevant and contemporary data.


2014 ◽  
Vol 5 (1) ◽  
pp. 97-124 ◽  
Author(s):  
Mehdi Behboudi ◽  
Hossein Vazifehdoust ◽  
Kobra Najafi ◽  
Mina Najafi

Purpose – The purpose of this study is to verify the factors affecting the use of emotional and rational appeals in online advertising among Muslim customers in Iran. Design/methodology/approach – By reviewing the literature of advertising appeals and developing a comprehensive theoretical model, the effect of rational and emotional appeals on online advertising was examined. Expert questionnaire was administered to verify the validity of collected features. The Student's t-test was utilized to analyze the data collected from 271 participants. Findings – Five latent variables, namely user type, product involvement, e-lifestyle, advertising strategies, and internet motives were examined to explain factors affecting online advertising appeals among Muslim customers in Iran. It was found that “advertising strategies” and “user type” are the most effective factors influencing Muslims customers in developing an online advertising campaign. Research limitations/implications – The sample of this study was Iranian experts and it is necessary to conduct a survey with a larger sample size. Originality/value – This study provides insights into factors affecting the selection of emotional and rational appeals in Muslims countries. Moreover, it reports the primary columns of online advertising appeals.


2018 ◽  
Vol 15 (2) ◽  
pp. 254-272 ◽  
Author(s):  
Umamaheswari Elango ◽  
Ganesan Sivarajan ◽  
Abirami Manoharan ◽  
Subramanian Srikrishna

Purpose Generator maintenance scheduling (GMS) is an essential task for electric power utilities as the periodical maintenance activity enhances the lifetime and also ensures the reliable and continuous operation of generating units. Though numerous meta-heuristic algorithms have been reported for the GMS solution, enhancing the existing techniques or developing new optimization procedure is still an interesting research task. The meta-heuristic algorithms are population based and the selection of their algorithmic parameters influences the quality of the solution. This paper aims to propose statistical tests guided meta-heuristic algorithm for solving the GMS problems. Design/methodology/approach The intricacy characteristics of the GMS problem in power systems necessitate an efficient and robust optimization tool. Though several meta-heuristic algorithms have been applied to solve the chosen power system operational problem, tuning of their control parameters is a protracting process. To prevail over the previously mentioned drawback, the modern meta-heuristic algorithm, namely, ant lion optimizer (ALO), is chosen as the optimization tool for solving the GMS problem. Findings The meta-heuristic algorithms are population based and require proper selection of algorithmic parameters. In this work, the ANOVA (analysis of variance) tool is proposed for selecting the most feasible decisive parameters in algorithm domain, and the statistical tests-based validation of solution quality is described. The parametric and non-parametric statistical tests are also performed to validate the selection of ALO against the various competing algorithms. The numerical and statistical results confirm that ALO is a promising tool for solving the GMS problems. Originality/value As a first attempt, ALO is applied to solve the GMS problem. Moreover, the ANOVA-based parameter selection is proposed and the statistical tests such as Wilcoxon signed rank and one-way ANOVA are conducted to validate the applicability of the intended optimization tool. The contribution of the paper can be summarized in two folds: the ANOVA-based ALO for GMS applications and statistical tests-based performance evaluation of intended algorithm.


Sign in / Sign up

Export Citation Format

Share Document