scholarly journals Multi-unit price promotions and their impact on purchase decisions and sales

2017 ◽  
Vol 51 (5/6) ◽  
pp. 1049-1074 ◽  
Author(s):  
Salome Drechsler ◽  
Peter S.H. Leeflang ◽  
Tammo H.A. Bijmolt ◽  
Martin Natter
Keyword(s):  
Empirical Studies ◽  
Relative Effectiveness ◽  
Product Category ◽  
Unit Price ◽  
Purchase Decisions ◽  
Content Type ◽  
Sales Data ◽  
Product Categories ◽  
Functional Product ◽  
The Impact

Purpose The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level purchase probability and quantity decision. Design/methodology/approach The paper combines two empirical studies. Study 1 applies a hierarchical multiplicative model to store-level sales data for four product categories provided by a large Dutch retail chain. Study 2 presents a laboratory experiment in which the quantity requirements of the two focal MUP frames are manipulated to assess their impact on consumer purchase decisions. Findings The paper provides empirical evidence for the superiority of the “X for $Y” above “X + N free”, which confirms the hypotheses based on prospect theory, mental accounting and theory about gift-giving. Quantity requirements of four to five units show the largest effects. In addition, the superiority of the “X for $Y” frame holds for functional product categories, but not for the hedonic categories. Practical implications The paper provides managerial insights into the relative effectiveness of alternative MUPs and an SUP and how this promotional effectiveness depends on the type of product category and quantity requirements. Originality/value This paper combines actual sales data and experimental data. This “mixed approach” extends existing knowledge by comprehensively evaluating two MUP frames, namely, “X + N free” and “X for $Y” promotions, and an SUP.

Differential effects of macro and micro country images by product category and by country among Saudi consumers

2018 ◽  
Vol 56 (8) ◽  
pp. 1663-1681 ◽  
Author(s):  
Byoungho Jin ◽  
Moudi O. Almousa ◽  
Heesoon Yang ◽  
Naeun Kim
Keyword(s):  
Purchase Intention ◽  
Product Category ◽  
Country Image ◽  
Shopping Malls ◽  
Specific Product ◽  
Content Type ◽  
Product Categories ◽  
Country Level ◽  
Functional Product ◽  
The Impact

Purpose While country image consists of two hierarchical images – macro country image at the country level and micro country image at the specific product level – previous studies have largely failed to detail its varying effects by product category and by the level of a country’s economic development. The purpose of this paper is to examine the impact of the macro and micro country images of four countries (USA, Italy, Korea, and Malaysia) on Saudi consumers’ purchase intentions in two product categories (symbolic and functional product). Design/methodology/approach Data were collected from shoppers older than 20 years of age at several shopping malls in Riyadh, Saudi Arabia via mall intercept method. Findings Analyses of 496 data revealed that the effects of macro and micro country images differ by product category. In particular, both macro and micro country images were equally relevant to the purchase intention of symbolic goods (i.e. handbags), while micro country image played a greater role in the purchase intention of functional goods (i.e. cell phones). A partial country moderating effect was found. The effects of micro country image on the purchase intention of handbags were valid only in Italy, where product-country match is high. Originality/value This study advances country image research by highlighting how the effects of macro and micro country images on purchase intention differ by product category and by country. The findings suggest which aspect of country image (i.e. macro vs micro) should be actively communicated in the marketing of symbolic and functional goods.

Something old, something new: the role of partitioned pricing in consumers’ preference for new versus used products

2018 ◽  
Vol 35 (4) ◽  
pp. 353-365 ◽  
Author(s):  
Jody L. Crosno ◽  
Annie Peng Cui
Keyword(s):  
Sustainable Consumption ◽  
Experimental Studies ◽  
Purchase Decisions ◽  
Consumer Decision Making ◽  
High Quality ◽  
Content Type ◽  
Product Categories ◽  
Partitioned Pricing ◽  
Gain Loss ◽  
The Impact

PurposeThis research aims to represent an initial exploration of how partitioned pricing influences consumers’ purchase decisions of new versus used products from the theoretical perspectives of prospect theory and gain/loss decision frames.Design/methodology/approachFour experiments to test the hypotheses with multiple product categories have been conducted.FindingsResults from a series of experimental studies find that consumers prefer partitioned pricing over all-inclusive pricing for new products, whereas all-inclusive pricing is more preferred for used products. In addition, the authors demonstrate that a high-quality brand can reverse this effect for used products; specifically, consumers prefer partitioned pricing over all-inclusive pricing for a used product with a high-quality brand.Originality/valueThis research contributes to the literature on second-hand consumption by examining the impact of pricing strategies on consumer purchase decisions of new versus used products. This study deepens our understanding of consumer decision-making for new versus used products and it provides implications for bolstering sustainable consumption.

Towards a new price discrimination strategy

2019 ◽  
Vol 32 (4) ◽  
pp. 975-998 ◽  
Author(s):  
Preeti Narwal ◽  
Jogendra Kumar Nayak
Keyword(s):  
Price Discrimination ◽  
Empirical Studies ◽  
Market Price ◽  
Product Category ◽  
Price Fairness ◽  
Student Sample ◽  
Content Type ◽  
Fairness Perception ◽  
Price Differentiation ◽  
The Impact

Purpose The purpose of this paper is to explore the applicability of Pay-What-You-Want (PWYW) pricing multi-channel retailing. Specifically, the impact of PWYW endogenous price discrimination on consumers’ price fairness perception of and reactions to PWYW is investigated. Design/methodology/approach Three empirical studies with different product categories were conducted through lab experiments with student sample using scenario-based experimental approach. Findings Results indicate the viability of PWYW with lower suggested external reference price. The impact of PWYW endogenous price discrimination is dependent upon the magnitude of price deviation from regular market price and product category. Consumers’ negative perceptions of price differentiation interacted with their underlying beliefs about the retailer’s cost of products across different channels. PWYW acceptance can be fostered in multi-channel by communication of additional-value generated in offline selling. Originality/value The current research is possibly the first to explore PWYW viability in the multi-channel context by exploring the consumer’s price perception process and critical consumer reactions through a well-structured research framework.

The impact of price promotions on checkout donations

2017 ◽  
Vol 26 (7) ◽  
pp. 734-749 ◽  
Author(s):  
Lan Xia ◽  
Nada Nasr Bechwati
Keyword(s):  
Spillover Effect ◽  
Unit Price ◽  
Moderating Effects ◽  
Price Promotions ◽  
Specific Product ◽  
Content Type ◽  
Product Categories ◽  
Price Discounts ◽  
Proposed Model ◽  
The Impact

Purpose This paper aims to present a model linking price promotions to checkout donations. It is argued that price promotions evoke two perceptions/emotions, namely, feelings of gratitude and perceived sacrifice of purchase, which consequently, influence the likelihood to donate. Feelings of gratitude dominate when the discount is high, while feelings of sacrifice dominate when the discount is low. Compared to no-discount situations, high discounts enhance consumers’ intention to donate while low discounts reduce this intention. Design/methodology/approach A total of four studies using shopping scenarios are conducted. Study 1 examines the main effect and the mediating factors. Study 2 replicates the findings in different product categories and at different unit-price levels. Studies 3 and 4 test the moderating effects of customer effort and discount framing. Findings Findings of the four studies provide support for the proposed model. Compared to no-discount situations, high discounts enhance consumers’ intention to donate, while low discounts reduce this intention. The effects are mediated by feelings of gratitude and sacrifice and moderated by effort obtaining the discount and format of the discount. Research limitations/implications Theoretically, this research advances the understanding of consumers’ interpretations of price promotions. All studies are conducted in an online context. Practical implications This research informs retailers and charity institutions on the best timing for soliciting checkout donations and indicates specific tactics to enhance consumers’ donations. Originality/value This is the first study linking price discounts to the growing phenomenon of checkout donations. The research is different from cause marketing where the donation is included in the price of a specific product. The work also differs from studies examining the spillover effect where additional purchases benefit the consumers instead of a cause.

When foreign brands appear local, and local brands appear foreign

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Chen
Keyword(s):  
Developing Countries ◽  
Purchase Intention ◽  
Empirical Studies ◽  
Country Of Origin ◽  
Developed Countries ◽  
Brand Names ◽  
Content Type ◽  
Product Categories ◽  
Foreign Brand ◽  
Foreign Brands

PurposeBoth foreign and local companies frequently name their brands in foreign language on the market of developing countries, and some of them choose to disclose the brands' country of origin to consumers. The purpose of this research is to investigate the joint effects between the practices of disclosing the actual country of origin of the brands and the language of the brand names on consumers' purchase intention for foreign brands and local brands in developing countries.Design/methodology/approachThe proposed hypotheses were tested in two studies, namely an experiment and a field experimental survey, with stimuli from two product categories.FindingsThe results of the two empirical studies with Chinese participants consistently demonstrate that revealing the actual country of origin of the brands undermines consumers' purchase intention for local brands that use foreign brand names, but does not impact consumers' purchase intention for foreign brands that use local brand names.Originality/valueThis research first investigates the effects of adapting the brand names into local language of developing countries for brands from developed countries on consumers' purchase intention, which provides new insight into the literature on foreign branding and country of origin effects as well as practical implications for brand managers.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

Choice, voice and collaboration: using preference accommodation and feedback in trauma therapy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daryl Mahon
Keyword(s):  
Empirical Studies ◽  
Relative Effectiveness ◽  
Case Vignette ◽  
Trauma Therapy ◽  
Content Type ◽  
Choice Preference ◽  
Randomised Control Trials ◽  
Trauma Informed ◽  
Informed Treatment ◽  
Meta Analyses

Purpose Organisations are increasingly understanding the need to be trauma informed. However, how trauma therapies in such organisations apply the principles of choice and collaboration is less understood. The present paper applies two trans-theoretical methods for involving clients in their therapy through preference accommodation and feedback-informed treatment (FIT). A case vignette is provided demonstrating how to involve clients in trauma therapy by listening to their preferences, needs and by providing them with a voice on their experience of the process and outcome of care. Design/methodology/approach A focused review of the literature was conducted, with relevant randomised control trials, systematic reviews and meta-analyses sourced. The resulting information informed the design and this model for working with those in trauma therapy. Findings The research regarding trauma-specific therapies being more effective is far from conclusive. At the same time, early attrition and negative outcomes make up a large percentage of those seeking therapy. Using preference accommodation and FIT is one possibly way to mitigate against these experiences in therapy and to provide choice, preference and collaboration consisting with the principles of trauma-informed approaches. Research limitations/implications Methods to improve the experiences of those seeking trauma therapy have been identified and discussed. According to the author’s knowledge, this is the first known paper aligning trauma therapy and trauma-informed approaches with preference accommodation and FIT. Future empirical studies may wish to examine the relative effectiveness of this approach. Practical implications Methods to improve outcomes for those seeking trauma therapy are at the disposal of practitioners. Improving outcomes, while also providing choice, voice and collaboration is a clinical setting. Originality/value This is a novel paper adding to value and extending how practitioners can use principles of trauma-informed approaches within trauma therapy.

The role of market and product category characteristics in local versus foreign language branding in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pablo Farías ◽  
Luis Torres
Keyword(s):  
Latin America ◽  
Foreign Language ◽  
Latin American ◽  
Product Category ◽  
Cultural Dimensions ◽  
Brand Names ◽  
High Tech ◽  
Content Type ◽  
Local Language ◽  
Product Categories

PurposeThis paper explores which market and product category characteristics could influence the use of foreign language brand names (i.e. whether a brand uses a foreign language versus local language brand name) in some of the largest Latin American countries.Design/methodology/approachHypotheses are tested using 880 brands from 39 product categories and nine Latin American markets using a hierarchical logistic regression.FindingsResults revealed that foreign language brand names are more likely to be used in product categories related to local infrastructure, high-tech and global community. In contrast, local language brand names are more likely to be used in product categories associated to subscriptions. Findings also suggest that Hofstede's national cultural dimensions are significant factors. Finally, the results revealed that foreign language brand names are more likely to be used in markets with a low level of foreign language proficiency.Originality/valueThis paper shows the importance of considering market and product category characteristics and their potential influence on local versus foreign language branding in Latin America – an ignored issue in previous research.

The influence of price and promotion on package size propensity

2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh
Keyword(s):  
Decision Making ◽  
Product Category ◽  
Relative Price ◽  
Grocery Stores ◽  
Consumer Decision Making ◽  
Content Type ◽  
Household Level ◽  
Packaged Goods ◽  
Package Size ◽  
The Impact

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.

Implementing Web 2.0 tools in organisations

2014 ◽  
Vol 21 (1) ◽  
pp. 2-5 ◽  
Author(s):  
Gavin James Baxter
Keyword(s):  
Communities Of Practice ◽  
Web 2.0 ◽  
Empirical Studies ◽  
Work Place ◽  
Special Issue ◽  
Web 2.0 Technologies ◽  
Web 2.0 Tools ◽  
Content Type ◽  
Organisational Factors ◽  
The Impact

Purpose – This special issue aims to increase the awareness of the organisational factors that enterprises must reflect on and address when introducing Web 2.0 technologies into their organisations. In contrast to empirical studies that review the impact of Web 2.0 technologies in organisations in terms of how they might support knowledge sharing or communities of practice, this special issue intends to identify the salient criteria that management practitioners must address to assist in the implementation of Web 2.0 technologies in the work place. Design/methodology/approach – This special issue aims to increase the awareness of the organisational factors that enterprises must reflect on and address when introducing Web 2.0 technologies into their organisations. In contrast to empirical studies that review the impact of Web 2.0 technologies in organisations in terms of how they might support knowledge sharing or communities of practice, this special issue intends to identify the salient criteria that management practitioners must address to assist in the implementation of Web 2.0 technologies in the work place. Findings – One of the principal findings that have emerged from this special issue is that it indicates the importance of reviewing social and cultural factors in organisations when introducing Web 2.0 technologies in the work place. In addition to assessing technical issues that might impact on the implementation of Web 2.0 technologies in organisations this special issue also explores subject matters such as the dilemma of whether a top-down or a bottom-up approach is more effective towards engaging staff in the adoption of Web 2.0 tools at work. Originality/value – The research presented in this special issue provides an important academic contribution towards an area that is, at present, under researched namely, whether there is a structured approach that can be universally applied by organisations when internally implementing Web 2.0 technologies into their work place.

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