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Amount off versus percentage off—when does it matter?

Eva M. González, Eduardo Esteva, Anne L. Roggeveen and Dhruv Grewal

Journal of Business Research, 2016, vol. 69, issue 3, 1022-1027

Abstract: This research explores the impact of discount framing on consumer perceptions of value and purchase intentions. An amount off discount frame results in higher perceptions of value and purchase intentions for higher-priced products (priced over $100). Three studies consistently support this prediction. Experiment 1 examines the interactive effects of amount off versus percentage off deals as a function of higher versus lower-priced products. For a higher-priced product, consumers prefer the offer more in terms of both value and purchase intentions when the discount is presented as amount off rather than the percentage off. For a lower-priced product (less than $100), the results, though not statistically significant, indicate a reverse pattern. Experiment 2 demonstrates that the result (amount off is better than percentage off) generalizes across higher price levels. Finally, Experiment 3 affirms that the result (amount off is better than percentage off for higher-priced products) generalizes across discount levels.

Keywords: Pricing; Value perceptions; Price format; Discount (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:eee:jbrese:v:69:y:2016:i:3:p:1022-1027