When and how should retailers rationalize the size and duration of price discounts?

Danny Weathers, Scott D. Swain and Igor Makienko

Journal of Business Research, 2015, vol. 68, issue 12, 2610-2618

Abstract: Price discounts are common retail promotional tools that are defined by their size and duration. Consumers possess a general schema in which they believe that retailers are motivated to associate larger price discounts with shorter durations and smaller price discounts with longer durations. However, factors influencing promotion management frequently lead retailers to present discount size/duration combinations that are incongruent with this schema. What are the consequences for retailers of presenting consumers with such discounts, and what can retailers do to overcome detrimental effects of incongruent discount terms?

Keywords: Price promotion; Theory-of-mind; Discount duration; Discount size; Retailer credibility; Rationales (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:12:p:2610-2618

DOI: 10.1016/j.jbusres.2015.04.010

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