 When less is better than more: Just-below discount in tensile price promotionsPrantosh J. Banerjee, Sanjeev Tripathi and Arvind Sahay Journal of Retailing and Consumer Services, 2016, vol. 31, issue C, 93-102 Abstract: Retailers often use Tensile Price Claims (TPC) such as “upto 40% off†or “from 10% to 40% off†to promote a line of merchandize. This enables them to have a salient communication while allowing specific level of discount on particular items. Recently, retailers have started using just-below TPC frames such as “upto 39% off†. This research explores the influence of TPC framed with “just-below†numbers on consumers’ perceived benefits through three studies. The results indicate that just-below temporal frames have a more favorable impact on consumer perceptions than round frames; this is contrary to left digit salience heuristic but is in line with anchoring and adjustment theory. The effect of just-below framing disappears both for deep discount levels and with sequential TPC discounts. This study has important managerial implications for the use of TPC as a promotional tool. The study also contributes to theory in multiple ways. Keywords: Tensile Price Claims; Just-Below discounts; Anchoring and adjustment; Numerical precision; Sequential discounts (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:31:y:2016:i:c:p:93-102 DOI: 10.1016/j.jretconser.2016.03.012 Access Statistics for this article Journal of Retailing and Consumer Services is currently edited by Harry Timmermans More articles in Journal of Retailing and Consumer Services from Elsevier |
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