Price presentation effects on green purchase intentions

2014 ◽  
Vol 23 (3) ◽  
pp. 230-239 ◽  
Author(s):  
Fei Lee Weisstein ◽  
Mohammadreza Asgari ◽  
Shir-Way Siew

Purpose – This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the increasing awareness of environmental issues and green products among consumers, there is a gap between their green attitude and purchase intentions. Previous studies show that consumers’ degree of greenness varies and that price plays an important role in their green consumption decision-making. Design/methodology/approach – Two between-subject experiments with 236 participants were used to examine our hypotheses and conceptual model. Findings – The results show that different formats of price promotion presentations influence consumers’ purchase perceptions differently. Consumers with a high degree of greenness are attracted to promotions emphasizing gain, while those with a low degree of greenness prefer promotions underlining reduced loss. In addition, medium-greenness consumers show similar reactions to both formats. Our studies further demonstrate that consumers’ perceived value mediates the moderated effects of perceived quality and perceived savings on green purchase intentions. Practical implications – This research helps marketers better design price promotions, taking into account the various levels of consumers’ greenness. The focus of reduced loss or gain of the promotional programs should be targeted at consumers with different levels of greenness. Originality/value – This is the first paper to examine the role of price promotion presentation formats in consumer decision-making regarding green consumption. The study provides new insights concerning how to design price promotions to enhance the green purchase intentions of consumers.

2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh

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.


2018 ◽  
Vol 22 (2) ◽  
pp. 176-188
Author(s):  
Addie Martindale ◽  
Ellen McKinney

Purpose The purpose of this paper is to explore garment consumption decision processes of female consumers when they have the option to sew or purchase their clothing. Design/methodology/approach This research study presents a segment of the findings from a larger qualitative grounded theory study on women who choose to sew clothing for themselves (Martindale, 2017). This research analyzed the interview data pertaining to the unique sew or purchase decision-making process in which these consumers undertake as well as the related control over ready-to-wear consumption that sewing provides them. Findings The ability to sew resulted in a unique consumer decision-making process in regard to the clothing purchases due to the control it provided them over their ready-to-wear consumption. The women developed factors that they used to make the decision to sew or purchase. Over all the ability to sew provided them the option to sew or purchase clothing, allowing the women more control over their clothing selection specifically in regard to the garments body fit. Research limitations/implications This study was limited to English-speaking women living in the North America. The qualitative data collected are specific to this sample which cannot be generalized to all female home sewers. Research involving a larger population of women from a larger geographic area is needed. Practical implications The newly developed sew or purchase model provides an understanding of the control that having the option to sew or purchase provides female consumers. The findings offer apparel industry professionals a new perspective on ready-to-wear consumer dissatisfaction. The investment that is made when a garment is sewn instead of purchased has the potential to increase wardrobe sustainability as the consumer experiences more attachment to the clothing they have made. The model serves a starting point for further exploration into other craft-related consumer decision behaviors. Originality/value Purchasing decisions of this nature have yet to be considered in published research. Exploring these women’s decisions who operate outside of typical consumer culture and developing a model for this consumer behavior explains a phenomenon not yet addressed by existing consumer consumption research.


2019 ◽  
Vol 36 (1) ◽  
pp. 178-188 ◽  
Author(s):  
Nanda Choudhury ◽  
Srabanti Mukherjee ◽  
Biplab Datta

Purpose The purpose of this paper is to examine the factors affecting decision-making at the BoP and propose a framework of the consumer decision-making process at the base of the pyramid (BoP). Design/methodology/approach The qualitative research design was adopted to collect primary data. Data collected through the in-depth semi-structured interviews of the 48 BoP consumers in Kolkata and Kharagpur (India) were subjected to grounded theory analysis for theory development. Findings This study reveals that consumer vulnerability affects the decision-making process and the transaction cost at BoP level. It was observed that the consumers at the BoP make constrained choices due to their vulnerability and try to minimise transaction cost while selecting the retails. The constrained retail choice leads to a limited selection of products and brands. Originality/value This study, for the first time, has investigated the decision-making process for BoP consumers in detail. As a pioneering attempt, it sheds light on some new factors including consumer vulnerability and transaction cost that have an impact on the consumer decision-making process.


2019 ◽  
Vol 22 (3) ◽  
pp. 365-380 ◽  
Author(s):  
Rosy Boardman ◽  
Helen McCormick

Purpose This paper aims to investigate how apparel product presentation influences consumer decision-making and whether there are any differences between age groups. Design/methodology/approach A mixed methodology was used including eye-tracking and qualitative in-depth interviews, with a purposive sample of 50 participants between age 20 and 70. Findings A higher number of product presentation features resulted in increased positive visual, cognitive and affective responses as consumers wanted as much visual information as possible to aid decision-making. Images of models attracted the most attention and were the most influential product presentation feature, followed by mannequin images and the zoom function. The 20 s spent much less time viewing and interacting with the product presentation features than middle age groups (30 s-50 s), had minimal fixations on mannequin images and had a much quicker decision-making process than other age groups. Practical implications The research informs retailers which product presentation features are the most effective for their target market to aid consumer decision-making with the aim of reducing returns. Originality/value The paper contributes to the literature by providing more in-depth insights than previous studies into the impact of online product presentation on consumer decision-making by using qualitative research and eye-tracking. The research also explores more product presentation features than previous research and investigates the presentation of apparel products, which are notoriously the most difficult products for consumers to assess online. The research is unique in its exploration of age differences in relation to product presentation features.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jung-Hwan Kim ◽  
Minjeong Kim ◽  
Jungmin Yoo ◽  
Minjung Park

PurposeThe purpose of the study is to investigate how mental imagery evoked from sensory in-store experience influences consumer anticipatory emotion, perceived ownership and decision satisfaction which eventually impact positive consumer responses such as behavioural intent. In this study, gender difference is proposed as a moderator to completely understand the role of mental imagery in the in-store decision-making process.Design/methodology/approachUsing a market research agency in South Korea, an online survey was employed to collect data. A total of 455 useable respondents (men = 224 and women = 231) largely living in the two most populous provinces in South Korea (i.e. Seoul and Gyeonggi provinces) completed the survey. A number of path analyses were conducted to test hypotheses.FindingsThe results of the study showed that mental imagery evoked from sensory product experience played a critical part in facilitating the consumer decision-making process by influencing anticipatory emotion and perceived ownership. The relationship among anticipatory emotion, perceived ownership, decision satisfaction and behavioural intent was significant except for the relationship between perceived ownership and behavioural intent. This study further indicated that the way mental imagery influences the in-store decision-making process differs between men and women.Originality/valueThe effect of mental imagery in a physical retail context is largely ignored. This study addressed the crucial role of mental imagery in a physical apparel retail setting and examined its impact on consumer decision-making processes. By exploring how to enhance consumers' in-store sensory shopping experiences through mental imagery to influence their positive shopping outcomes, this study offers vital insights into how retailers operating physical stores can successfully utilize their stores.


2015 ◽  
Vol 5 (3) ◽  
pp. 259-275 ◽  
Author(s):  
John Bae ◽  
Doris Lu-Anderson ◽  
Junya Fujimoto ◽  
Andre Richelieu

Purpose – Purchasing behaviors have been studied in various countries. Previous studies involving consumer decision-making styles for sport products have only been seen in one country in order to either identify factors of Purchase Style Inventory for Sport Products (PSISP) or classify consumer shopping behaviors. Therefore, the purpose of this paper was to identify consumers’ decision-making styles (shopping styles) for sport products from Japanese, Singaporean, and Taiwanese college-aged consumers. Design/methodology/approach – The scale of PSISP was adapted to measure consumer decision-making styles (shopping styles) for sport products. This instrument is composed of 35 items under nine dimensions. CFA, 3 (Nationality) × 2 (Gender) MANOVA and ANOVA were employed. Findings – According to the results of this study, there were significant different decision-making styles among three different countries in East Asia. Overall, Japanese male and female college-aged students exhibited higher brand consciousness than Singaporean and Taiwanese males and females. Research limitations/implications – As consumers from different countries show different lifestyle, education, economic, religion, and culture, they might have their unique shopping styles. Therefore, the dimensions related to decision-making styles need to be explored, and the scale needs to be validated using a substantial sport industry sample in the future study. Practical implications – This study helps East Asian advertisers or markets to rethink and develop appropriate marketing strategies as well as to understand the different decision-making styles of local consumers and better approach new and existing consumer markets. Originality/value – This paper is important for international sports marketers to predict consumer shopping patterns and maintain proper inventory levels, particularly when marketing in global markets.


2014 ◽  
Vol 26 (7) ◽  
pp. 1065-1082 ◽  
Author(s):  
Hui-Chun Huang ◽  
Ya-Ting Chang ◽  
Che-Yi Yeh ◽  
Chung-Wei Liao

Purpose – The authors empirically evaluated the effect of price promotions on customer quality evaluations and repeat-purchase intentions in coffee chain stores. The moderating role of customer characteristics in this process was also investigated. Design/methodology/approach – Consumers in 12 coffee chain stores were surveyed and 488 usable questionnaires were obtained. Relationships in the test model were examined using structural equation modeling techniques. A multiple-group solution was used to test the moderating effects of consumer characteristics. Findings – The results of structural equation modeling analyses suggested that price-promotion activities at Starbucks in Taiwan had a favorable effect on customer quality evaluations and positively influenced repeat-purchase intentions. The moderating effects of consumer characteristics were partially supported. Whereas sex showed no significant moderating effect, consumption frequency did demonstrate a moderating effect. Practical implications – The results indicate that existing customers may see price promotions at Starbucks in Taiwan as a reward or incentive, and thus lead to an increase in favorable evaluations. The findings provide a new perspective that may encourage those involved in the marketing of coffee chain stores to manage price promotions in a more strategic manner by considering customer characteristics. Originality/value – The effects of price promotions on brand evaluation remain controversial and may vary among product categories. Additionally, most studies regarding price promotions have used an experimental approach, and few studies of price promotions in the coffee industry have been reported. The study is among the first to empirically examine the effects of price promotions and the moderating role of consumer characteristics in the process at coffee chain stores.


2016 ◽  
Vol 6 (2) ◽  
pp. 1-13
Author(s):  
Sabita Mahapatra ◽  
Saumya Sharma

Subject area Marketing/Consumer behaviour. Study level/applicability The case can be used for the postgraduate students and executives in a first-year Marketing Management class for an introductory session on understanding consumer decision in a business-to-consumer context. The case can be also used in a second-year elective course on Consumer Behaviour for the topic on consumer decision-making journey and managing customer experience through service excellence. This case would be most befitting to be used for the first introductory session of 75 minutes to give an overview on consumer behaviour. Case overview The dismal failure of Natasha’s desktop while preparing an important presentation due for submission compels Natasha (the protagonist) to make up her mind to buy a laptop. After consulting her friends and relatives, followed with intense search from different retail stores, Natasha finally decides to buy a Sony laptop from a multi-brand retail outlet with a price discount and freebies. Finally, when Natasha settled down to work on her new laptop on her pending presentation, she confronts some problem. Unable to identify the problem, she contacted the store sales representative to resolve the problem. However, the representative’s ineffectiveness in addressing the problem and promptly delivering the service leaves Natasha in a state of uncertainty and confusion. She seemed to be in a fix and undecided, wondering whether she should immediately rush to the repair centre with her desktop to fix the problem for the time being or she should leave the laptop and wait till the problem gets resolved. Expected learning outcomes The case aims to provide interesting inputs on various phases of consumer decision-making journey and appropriate marketing strategy for each phase. The objective is to make students appreciate how poor after-sales service results in post-purchase dissonance and conflict in the consumer's mind. The case provides an opportunity for students to come up with possible solutions to resolve the post-purchase dissonance and conflict and share their views or ideas of how a seller can create a lasting impression in the mind of the buyer. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 8: Marketing


2017 ◽  
Vol 34 (5) ◽  
pp. 393-403 ◽  
Author(s):  
Marit Gundersen Engeset ◽  
Birger Opstad

Purpose Marketers often combine products in bundles to increase demand. Research has shown that itemizing the prices of the individual products in the bundle raises evaluations in some situations. The purpose of this paper is to investigate how bundle size influences the effect itemizing prices have on bundle evaluation. Design/methodology/approach The authors conduct two experiments. In the first, they test the effects of price presentation formats (itemized vs consolidated) and bundle size on consumers’ evaluations of product bundles. In the second experiment, they test the proposed mechanism that itemizing the price leads to a more realistic price expectation which in turn enhances evaluation. The authors also test whether this effect is stronger for larger bundles. Findings In Study 1, the authors find that large, but not small, bundles are evaluated more positive when presented with itemized prices. In Study 2, mediated moderation analysis supports the prediction that price expectation mediates the effect of the price presentation × bundle size interaction on bundle evaluations. The findings show that itemizing prices results in more realistic price expectations and that this effect is stronger for larger bundles. In turn, more realistic price expectations lead to higher evaluation. Research limitations/implications The implication of this research is that by directing attention to individual items in the bundle, consumers are better able to assess bundle benefits. More research is needed to investigate other potential explanations for the findings in Study 1. Further research should also investigate whether the findings reported here holds in other settings, with other products and with other types and size of bundles. Practical implications Managers are recommended to itemize the prices of product bundles, particularly when bundles are large. Originality/value This paper extends our knowledge about the effect itemizing the prices of individual items in a bundle has on consumer evaluation by demonstrating the moderating effect of bundle size and showing that more realistic price expectation explains these effects.


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