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Article
Publication date: 8 May 2017

Salome Drechsler, Peter S.H. Leeflang, Tammo H.A. Bijmolt and Martin Natter

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…

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Abstract

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.

Details

European Journal of Marketing, vol. 51 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 13 July 2015

Wen-Hsien Huang and Chun-Ming Yang

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…

2068

Abstract

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.

Details

European Journal of Marketing, vol. 49 no. 7/8
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 17 December 2024

Rong Zhou

This article investigates the impact mechanism of scarcity promotions in live streaming e-commerce on consumer purchase intention in the context of urban-rural and male-female…

205

Abstract

Purpose

This article investigates the impact mechanism of scarcity promotions in live streaming e-commerce on consumer purchase intention in the context of urban-rural and male-female divides in China, with emotional experience as the mediating variable.

Design/methodology/approach

A total of 687 online questionnaires are collected, and the model is empirically analyzed by partial least squares structural equation model.

Findings

Scarcity promotions in live streaming e-commerce positively influence purchase intention, with emotional experience mediating the impact. Furthermore, the influence of scarcity promotions in live streaming e-commerce on the emotional experience of urban residents is greater than that of rural residents. The effect of scarcity promotions on the purchase intention of urban residents is lower than that of rural residents. Scarcity promotions in live streaming e-commerce have a greater impact on the emotional experience of female consumers compared to male consumers. The influence of scarcity promotions on the purchase intention of female consumers is lower than that of male consumers.

Originality/value

This article extends the scarcity promotion theory to the context of live streaming e-commerce. Furthermore, it is the first to explore the mediating role of emotional experience in this process. Lastly, it is the first to investigate the moderating effects of urban-rural and male-female factors in this process.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 20 July 2023

Siddharth Harshkant Bhatt and Dinesh Ramdas Pai

“Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed…

602

Abstract

Purpose

“Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed findings about the effectiveness of this promotion compared to the straightforward discount on a single unit of a product. The goal of this research is to employ a theoretical lens to examine the effectiveness of “Buy X Get X Free” promotions.

Design/methodology/approach

The theoretical framework was tested in two experiments using different products and samples. The data collected from each experiment were analyzed using both descriptive and inferential techniques to assess support for the theoretical arguments.

Findings

Findings reveal that at identical levels of per-unit discount, the “Buy X Get X Free” promotion is perceived less favorably by consumers than a straightforward single-unit discount. Consumers perceive lower transaction value and acquisition value and, thereby, a lower purchase intention, from the “Buy X Get X Free” promotion compared to a single-unit discount.

Practical implications

This research was conducted keeping in mind the popularity of the “Buy X Get X Free” promotion in the real world. The findings caution retailers against indiscriminately using this promotional frame.

Originality/value

Using a theoretical lens, this research proposes and validates a framework to systematically examine consumers' perceptions of the two popular discount frames. The proposed theoretical framework provides a richer understanding of the underlying consumer psychology that drives the evaluation of these promotions. Further, primary data from lab experiments validates the framework. The research also helps advance the understanding of consumer evaluation of sales promotions in general.

Details

Marketing Intelligence & Planning, vol. 41 no. 6
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 1 March 1995

Ken Peattie and Sue Peattie

“Below‐the‐line” sales promotion as part of thecommunication mix is virtually ignored within the services marketingliterature, in comparison with personal selling…

12884

Abstract

“Below‐the‐line” sales promotion as part of the communication mix is virtually ignored within the services marketing literature, in comparison with personal selling and “above‐the‐line” advertising. However, “below‐the‐line” techniques have been growing in their extent, credibility and sophistication during the last two decades. They have now reached the point where they deserve consideration in relation to other areas of marketing practice beyond their fast‐moving consumer goods (FMCG) origins. The different tools which make up the promotional toolkit have also reached a point where they deserve individual consideration instead of being bundled together. Seeks to demonstrate how one such tool, the promotional competition, represents a significant opportunity for services marketers. Reviews the literature relating to sales promotion to build a case for the suitability of competitions for services marketing, and presents the findings of a survey of 188 services‐sponsored competitions to explore the nature and extent of competitions′ use in practice.

Details

International Journal of Service Industry Management, vol. 6 no. 1
Type: Research Article
ISSN: 0956-4233

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Article
Publication date: 1 January 2001

Caroline Hare, David Kirk and Tim Lang

The number and proportion of older people in the UK are increasing and it has been found that this population segment is a nutritional risk group. Food choice research and health…

2753

Abstract

The number and proportion of older people in the UK are increasing and it has been found that this population segment is a nutritional risk group. Food choice research and health promotion reports have sought to identify the influences on diet and the food retailing sector has been found to particularly impact upon older people. Low income, poor mobility and an inability to access food shops disadvantage many. This paper considers the food shopping experiences of older consumers by identifying, through critical incident technique, positive and negative aspects of the food shopping activity. A total of 120 interviews were conducted and 248 incidents collected from people aged 60/65+ in various locations in Scotland. Content analysis produced eight primary categories and 22 sub‐categories of key elements in the shopping experience. The main factors that contribute to the quality of the shopping experience were merchandise related, retail practices and staff issues. The internal store environment, accessibility, external shopping environment and personal factors were also identified and featured both positive and negative incidents, with social aspects only having positive incidents.

Details

International Journal of Retail & Distribution Management, vol. 29 no. 1
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 1 May 2003

Caroline Hare

The growing numbers of older people represent an important market segment for retailers, particularly the food retail sector. The dominance of the food multiples and their growth…

2873

Abstract

The growing numbers of older people represent an important market segment for retailers, particularly the food retail sector. The dominance of the food multiples and their growth strategies have been criticised for contributing to some older consumers being disadvantaged. This paper considers the satisfaction levels of older consumers in Scotland, with their food‐shopping experience. Drawing upon previous work by the author which identified the factors influencing satisfaction, 220 volunteers were recruited from various locations in Scotland and interviewed using a structured questionnaire. The survey focused on the main shopping trip. Results indicate that, whilst there is a general trend towards satisfaction, there are key areas of dissatisfaction, such as aspects of the products for sale (merchandise), the practices and procedures of the retailer (retail practices) and factors in the community which affected the shopping trip (external shopping factors). This suggests that policy‐makers seeking to encourage the participation of food retailers in health promotion need to recognise vulnerable sub‐groups of the older population and recognise that not all older consumers can signal their preferences in the marketplace.

Details

International Journal of Retail & Distribution Management, vol. 31 no. 5
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 5 April 2024

Yuchen Wang and Rui Guo

Based on social cognitive theory, this study aims to explore the psychological mechanism behind consumer verification behavior following tourism e-commerce live-streaming.

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Abstract

Purpose

Based on social cognitive theory, this study aims to explore the psychological mechanism behind consumer verification behavior following tourism e-commerce live-streaming.

Design/methodology/approach

Based on grounded theory, data were collected through 20 semi-structured in-depth interviews and analyzed.

Findings

This study identified that companies commonly use reminder messages and secondary promotions to facilitate the verification of tourism live-streaming products. Throughout this process, consumers undergo various psychologies related to verification. Specifically, they experience four positive verification psychologies: fear of missing out, anticipated emotions, status self-esteem and promotional perception. They also encounter two negative verification psychologies: psychological reactance and invasiveness. In addition, environmental factors such as the type of tourism live-streaming products and tourism destinations, along with individual trait factors like cognitive miserliness, tourism experience, autonomy, regulatory mode and impulsiveness, play significant roles in shaping verification behavior. These factors collectively influence the formation of verification behavior.

Originality/value

This study can provide recommendations for tourism companies to conduct marketing events following live-streaming. It is one of the earlier comprehensive studies discussing how to promote verification behavior following tourism e-commerce live-streaming. It helps to understand the psychological mechanism underlying the formation of verification behavior.

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Article
Publication date: 31 January 2020

Xiaohui Shi, Feng Li and Pattarin Chumnumpan

As a frequently observed business phenomenon, the use of product scarcity to improve a product’s market performance has received increasing attention from both academics and…

10073

Abstract

Purpose

As a frequently observed business phenomenon, the use of product scarcity to improve a product’s market performance has received increasing attention from both academics and practitioners. The resulting literature has covered a wide variety of issues based on various theories, using different research methods, in a diverse range of settings. However, this diversity also makes it difficult to grasp the core themes and findings, and to see the outstanding knowledge gaps. This paper aims to review previous studies on the use of product scarcity in marketing and identifies new directions for future research.

Design/methodology/approach

A systematic review was conducted to identify and analyse 66 research papers published in business and management journals between 1970 and 2017.

Findings

The authors examined the underlying theories of scarcity-based marketing, and developed a conceptual framework that describes the key factors of product scarcity and how they influence both consumers and the market. They also highlighted some key achievements in modelling the processes involved in using product scarcity in marketing.

Originality/value

This analysis of the identified papers suggests that there are substantial gaps in our knowledge of this field, which opens up new paths for future research. For future research, the authors identified three directions aimed at: addressing the practical needs of firms in understanding product scarcity; guiding the implementation of scarcity-based strategies; and measuring, monitoring and predicting the level of product scarcity and its impacts during implementation.

Details

European Journal of Marketing, vol. 54 no. 2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 12 October 2021

Hsin-Hsien Liu and Hsuan-Yi Chou

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how…

412

Abstract

Purpose

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how framing quantity promotions as either a freebie (e.g. “buy 1, get 1 free”) or a price bundle (e.g. “buy 2, get 50% off”) influences inaction inertia. Relevant mediators are also identified.

Design/methodology/approach

Three experiments, two using imaginary scenarios and one using an incentive-compatible design, test the hypotheses.

Findings

Consumers who miss a freebie quantity promotion express higher inaction inertia than consumers who miss a price bundle promotion. The cause of this difference is higher perceived regret and greater devaluation that result from missing a superior freebie (vs price bundle) promotion.

Research limitations/implications

Future research should examine how factors influencing perceived regret and devaluation moderate the quantity promotional frame effect on inaction inertia.

Practical implications

The findings provide insights into which quantity promotional frames practitioners should use to reduce inaction inertia.

Originality/value

This study's comprehensive theoretical framework predicts quantity promotional frame effects on inaction inertia and identifies relevant internal mechanisms. The findings are evidence that inaction inertia is caused by both perceived regret and devaluation in certain contexts. Furthermore, this study identifies the conditions in which a price bundle promotional frame is more beneficial than a freebie promotional frame.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 7
Type: Research Article
ISSN: 1355-5855

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