Morning deals make me feel smart: Consumer evaluations of online sales promotions differ by time of day

Technological advances have allowed companies to reach consumers 24 h a day, but a challenge in making use of consumers’ time of day exists. The present research investigates the effect of time of day on consumer evaluations of bonus pack and free gift promotions. Results from four studies reveal that consumers perceive bonus packs as more favorable than free gifts in the morning but not in the afternoon. Consumers’ self-perception as smart shoppers is identified as the psychological process explaining this discrepancy. A new perspective in understanding consumers’ dynamic time-bound evaluations of sales promotion and managerial implications for designing, targeting, and communicating nonmonetary promotions are discussed.     

The impact of different price promotions on customer retention

This paper investigates the impact of different price promotion effects regarding two different types of service cost (i.e., a joining fee vs. a monthly fee) on retention intentions for new customers in the long-term service industry. Based on the depreciation curve, mental accounting, and the escalation of commitment theory, we predict that customers’ retention intentions will be higher when they start using a service with a free monthly fee promotion rather than when they start it with a free joining fee promotion. This expectation was confirmed by five studies; experiments, customer survey, and secondary data. The theoretical and managerial implications are also discussed.     

Estimating cannibalizing effects of sales promotions: The impact of price cuts and store type

To evaluate the financial impact of supermarket sales promotions, managers must estimate how much new demand comes from cannibalizing the base product compared with other sources. However, investigations into cannibalization are scant. Using vector autoregression analytical framework applied to three years of supermarket scanner data, and sales promotions for pound cake, we estimate cannibalization effects for two common price reductions (10% and 15%), across large, medium and small supermarkets. The sales bumps varied across supermarkets for each price cut while cannibalization effects were substantial only in large supermarkets, with moderate effects in medium stores and no effects in small supermarkets.     

打折促销对会员的会员卡感知价值影响研究

随着竞争加剧,会员卡定向促销方式作为企业保留忠诚顾客的手段之一越来越受到企业青睐。采用2×5实验法研究企业打折促销对会员的会员卡价值感知的影响,结果表明当企业提供打折促销,会员对促销品能享受"折上折+积分"赠品+积分"时,能够增强会员的会员卡感知价值;会员对促销品只享受"积分"和"不享受会员待遇"时,会降低会员的会员卡感知价值;会员对促销品享受"折上折"或在节假日提供打折促销,会员只能对促销品享受"积分"优惠时,不会影响会员的会员卡感知价值。     

Optimal promotion planning for a product launch in the presence of word-of-mouth

Marketing managers concern that Word-of-Mouth (WOM) can affect the efficiency of sales promotion policy. Sales promotion might also amplify the strength of WOM which further complicates decision-making. In this study, we deploy an agent-based simulation optimization framework to find an efficient sales promotion plan in the presence of WOM for launching re-purchasable products. In this model, consumers' purchase decisions are influenced by price history, availability and satisfaction of the consumers, and positive/negative WOM. We show that taking WOM on board while determining the promotion plan can significantly increase the net present value. However, amplifying WOM might damage the firm's profit for some product categories.     

Consumer evaluations of different promotion types and price presentations: the moderating role of promotional benefit level

The effects of promotion type (i.e., price discounts and bonus packs) and price presentation (i.e., dollars and percentages) across promotional benefit levels were investigated in three experimental studies. The results suggest, for the products considered, that price discounts and bonus packs were valued similarly for both low and moderate promotional benefit levels, while price discounts were preferred when high promotional benefit levels were employed. Additionally, promotions presented in percentage terms were preferred when the benefit level was high. The implications of these results for retailers and manufacturers are that percentage price presentations should be used when large discounts are being offered. Furthermore, it appears that bonus packs are a viable alternative to price discounts when promotion levels are small or moderate since they have less of a deleterious effect on the brand.     

It's Not All Relative: The Effects of Mental and Physical Positioning of Comparative Prices on Absolute versus Relative Discount Assessment

In the context of three experiments, the authors examine the manner in which consumers compare a sale price to an explicit reference value. They find that a comparison of sale price to regular price may be more likely to involve an absolute (dollar amount) assessment, whereas a comparison of sale price to a competitor's price may be more likely to involve a relative (percent) assessment. The authors also find that vertical (i.e., columnar) placement of prices may result in a greater tendency to estimate discounts in relative terms. Conversely, horizontal (i.e., side-by-side) placement may result in a greater tendency to compute absolute numerical difference. The results provide important implications for retail managers in terms of framing and communicating price discounts.     

To be respected or liked: The influence of social comparisons on consumer preference for competence- versus warmth-oriented products

Consumers frequently compare themselves with others and find themselves to be inferior or superior to the comparison targets. This article examines the effect of social comparisons on the relative focus of self-efficacy and relationship needs and the subsequent impact on consumers’ preference for competence- versus warmth-oriented products. Across six studies, we show that upward comparisons (i.e., comparisons with superior targets) result in feelings of self-threat, which heighten the need for self-efficacy and increase the preference for products that convey competence. In contrast, downward comparisons (i.e., comparisons with inferior targets) elicit feelings of social distress, which heighten the need for social relationships and increase the preference for products that convey warmth. These effects are mitigated when the comparison is made in a social skill-related domain and when the comparison target is an out-group member.     

The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research

This study aims to investigate consumer perceptions and reactions in terms of specific discount patterns (fixed price, 40% discount, discount from 500 TL to 300 TL and 20% + 25% discount) in price promotion. According to the results, specific discount patterns in price promotion have a significant effect on perceived price attractiveness and purchase intention. When the specific discount patterns in price promotion and gender interaction were analyzed in terms of perceived price attractiveness, the scenario of the “discount from TL 500 to TL 300” significantly differentiated from both the control scenario (fixed price) and experimental scenarios for female. For males, no significant difference was found between the control and experimental scenarios. In terms of purchase intention, a significant difference was found between the fixed price scenario and the discount scenario from 500 TL to 300 TL and between the fixed price and 20% + 25% discount scenario. The theoretical managerial implications of the study were discussed, and future research suggestions were presented.     

An exploration of the standardization of targeting strategies and the use of promotional disciplines on the web: A cross-national study

This study examines how leading corporations standardize their regional sites from the integrated marketing communication (IMC) perspective. In terms of standardizing targeting strategies, data show that many leading brands view the online audiences as one mass. Customers and media are the two most targeted and standardized stakeholders for all brands and in each of the product categories (i.e. non-durable goods, durable goods, and service). This study also reveals that financial communities/investors, communities, and channel members are the other three most targeted and standardized stakeholders, even though their rankings are somewhat different across the product categories. Employees, government regulators, and special-interest groups are seldom targeted through corporate websites. In terms of standardizing promotional disciplines on the web, advertising is the most standardized, followed by customer relations, direct marketing, public relations, and sales promotions for all brands and each product category. As a whole, service brands have the highest standardization mean, while durable goods rank second and non-durable goods are last. The three product categories do not significantly differ in terms of the standardization of promotional tactics. A Web Standardization Model is developed to be compatible and comparable to Moriarty and Duncan's Standardization Model.     

Same but different - The effect of the unit of measure on the valuation of a unit price

Unit prices are a ubiquitous phenomenon. The respective legal norms leave a certain freedom of choice with regard to the reference unit. However, research on the impact of alternative measurement units on consumer behaviour is still in its infancy and its findings are inconclusive. Moreover, this influence has so far only been measured directly. Investigating the product category bottled beer (with its essential product attributes ‘brand’, ‘price’, ‘alcohol content’ and ‘size of packaging unit’), a Choice Based Conjoint experiment provides empirical evidence that a large (per 1 L) compared to a small (per 100 mL) size unit of measurement leads to a significant shift of importance towards the product attribute ‘price’ at the expense of the ‘brand’. In addition, consumers react more sensitively to price changes. At the strategic level, retailers can use these insights to sharpen their positioning through a suitable unit price measure. When making operational decisions, retailers should bear in mind that the reference unit influences the likelihood of purchase, the scope for price increases and the opportunities for up-selling.     

The influence of need for closure and perceived time pressure on search effort for price and promotional information in a grocery shopping context

Need for closure (NFC) is introduced as a variable of individual difference that shows promise to help the understanding of a consumers' effort to search for price and promotional information in the context of retail grocery shopping. Results showed that NFC and perceived time pressure (PTP) are important determinants of search effort for price and promotional information (e.g., searching for coupons, looking for in‐store promotions, switching stores to find lowest prices, and comparing unit prices). Moreover, an interaction effect was found between NFC and PTP. Future research and theoretical and practical implications are discussed. © 2005 Wiley Periodicals, Inc.     

The influence of anthropomorphic appearance of artificial intelligence products on consumer behavior and brand evaluation under different product types

While artificial intelligence products are widely used in the market, their anthropomorphic appearance design is becoming a frontier issue in product strategy and consumer behavior research. The aim of this study was to investigate the influence of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. It was conducted in China, a new but rapidly-growing country in the field of Internet, AI technology and AI product consumption. This study conducted four situational experiments with a 2 (anthropomorphic design: anthropomorphic vs. non-anthropomorphic) × 2 (product type: hedonic vs. utilitarian) between subjects’ experimental design. Data was collected from 1172 Chinese “Digital Natives” by using a structured questionnaire. The findings revealed that for hedonic AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived entertainment, and intelligence level significantly moderates the mediating effect of perceived entertainment; while for practical AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived usefulness, and intelligence level does not significantly moderate the mediating effect of perceived usefulness. There is no significant moderating effect of intelligence level on perceived usefulness. The study contributes to development and validation of a more comprehensive understanding and theoretical foundation of anthropomorphism, and furthermore explores the impact of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. This study also provides insights for companies to apply anthropomorphic strategies.     

When Sales Managers and Salespeople Disagree in the Appreciation for Their Firm: The Phenomenon of Organizational Identification Tension

Marketing literature emphasizes the importance of organizational identification in the sales force. However, empirical research has so far focused on the separate analysis of the consequences of either sales managers’ or salespersons’ organizational identification, largely ignoring their interactive effects. This study seeks to address this research void by exploring the phenomena of organizational identification agreement and organizational identification tension in the sales manager–salesperson dyad. In contrast to organizational identification agreement, organizational identification tension occurs in a sales manager–salesperson dyad if the sales manager and the salesperson differ in the strength of their organizational identification. Analysis of a triadic data set using hierarchical linear modeling supports the authors’ hypotheses that increasing the level of organizational identification agreement is beneficial but increasing organizational identification tension can have severe negative consequences for the satisfaction of a salesperson's customers and the salesperson's performance. The study additionally explores how sales managers’ leadership styles (charismatic vs. transactional), combined with the appropriate control system (behavioral vs. outcome control), can be effective in avoiding organizational identification tension.     

The influence of hedonic versus utilitarian consumption situations on the compromise effect

This article reports the influence of two specific consumption situations—hedonic and utilitarian—on the magnitude of the compromise effect. Based on the literatures of different valuation processes (valuation by calculation vs. valuation by feeling) and hedonic versus utilitarian consumption, the authors suggest that the compromise effect will be stronger under the utilitarian (vs. hedonic) consumption situation due to different valuation processes. Three experimental studies were conducted, and the results have supported the prediction. In addition, the authors successfully excluded alternative explanations such as differences in willingness to pay, justification, and attribute importance. The authors concluded with a discussion of the theoretical and managerial implication of this research.     

A study of the impact of Corporate Social Responsibility and price image on retailer personality and consumers' reactions (satisfaction,trust and loyalty to the retailer)

This study investigates the impact of a retailer's Corporate Social Responsibility (CSR) policy and its price image on retailer personality, along with the impact of these two variables on the consequences of retailer personality: consumers' satisfaction, trust and loyalty toward the retailer (measured by their attitude and future behavioral intentions). Data were collected on a convenience sample of 352 consumers of a French grocery retailer. Using Partial Least Squares analysis (PLS), we show that perceived Corporate Social Responsibility and price image have a significant positive/negative influence on retailer personality traits (“agreeableness” and “conscientiousness”/“disingenuousness”) and that Corporate Social Responsibility has also a significant positive influence on the “sophistication” personality trait. For the consequences examined (satisfaction, trust and loyalty to the retailer), we show that Corporate Social Responsibility, price image and retailer personality have a direct or indirect impact on these dependent variables.     

The influence of national versus generic branding on taste perceptions

The results of an experimental study that investigated the taste perception of generic versus national brands are presented. Using a 2 × 2 × 2 × 3 factorial design, we found that brand (national versus generic) significantly influenced the taste of the product. Additional variables were tested but were determined not significant. The implications of these findings are discussed as well as a general review of the generic branding innovation.