IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v34y2017icp287-293.html
   My bibliography  Save this article

Consumer avoidance of specially priced items during social coupon redemption

Author

Listed:
  • Nakhata, Chinintorn
  • Kuo, Hsiao-Ching

Abstract

Social coupons (SCs) (e.g., Groupon) differ from traditional or regular coupons (RCs) in that they require consumers to make a prepayment to receive substantive discounts. As the general rule of SCs prohibits double-promotion, SC consumers tend to engage in certain avoidance behaviors when experiencing another promotion (i.e., specially priced for selected items). The results across two scenario-based experiments reveal that SC consumers (vs. RC consumers) have a greater tendency to avoid specially priced items when redeeming a coupon for hedonic consumptions, but not for utilitarian consumptions. Such avoidance is due to one’s motivation to minimize the perception of deal waste.

Suggested Citation

  • Nakhata, Chinintorn & Kuo, Hsiao-Ching, 2017. "Consumer avoidance of specially priced items during social coupon redemption," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 287-293.
    • Handle: RePEc:eee:joreco:v:34:y:2017:i:c:p:287-293
    DOI: 10.1016/j.jretconser.2016.01.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698916000060
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2016.01.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    2. Ran Kivetz, 2003. "The Effects of Effort and Intrinsic Motivation on Risky Choice," Marketing Science, INFORMS, vol. 22(4), pages 477-502, December.
    3. Swofford, James L & Whitney, Gerald A, 1987. "Nonparametric Tests of Utility Maximization and Weak Separability for Consumption, Leisure and Money," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 458-464, August.
    4. Parsons, Andrew G. & Ballantine, Paul W. & Ali, Ashleigh & Grey, Hannah, 2014. "Deal is on! Why people buy from daily deal websites," Journal of Retailing and Consumer Services, Elsevier, vol. 21(1), pages 37-42.
    5. Drazen Prelec & George Loewenstein, 1998. "The Red and the Black: Mental Accounting of Savings and Debt," Marketing Science, INFORMS, vol. 17(1), pages 4-28.
    6. Loewenstein, George, 1987. "Anticipation and the Valuation of Delayed Consumption," Economic Journal, Royal Economic Society, vol. 97(387), pages 666-684, September.
    7. Arkes, Hal R. & Blumer, Catherine, 1985. "The psychology of sunk cost," Organizational Behavior and Human Decision Processes, Elsevier, vol. 35(1), pages 124-140, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sinha, Rajesh Kumar & Adhikari, Atanu, 2018. "Buyer-seller amount-price equilibrium for prepaid services: Implication for promotional pricing," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 285-292.
    2. Ieva, M. & De Canio, F. & Ziliani, C., 2018. "Daily deal shoppers: What drives social couponing?," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 299-303.
    3. Besharat, Ali & Nardini, Gia & Roggeveen, Anne L., 2021. "Online daily coupons: Understanding how prepayment impacts spending at redemption," Journal of Business Research, Elsevier, vol. 127(C), pages 364-372.
    4. Carlson, Jeffrey R. & Kukar-Kinney, Monika, 2018. "Investigating discounting of discounts in an online context: The mediating effect of discount credibility and moderating effect of online daily deal promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 153-160.
    5. Hongjun Lv, 2021. "Who benefits when coupons are issued by a duopoly from an e‐market?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1656-1664, October.
    6. Souiden, Nizar & Chaouali, Walid & Baccouche, Mona, 2019. "Consumers’ attitude and adoption of location-based coupons: The case of the retail fast food sector," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 116-132.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haipeng (Allan) Chen & Akshay R. Rao, 2002. "Close Encounters of Two Kinds: False Alarms and Dashed Hopes," Marketing Science, INFORMS, vol. 21(2), pages 178-196, August.
    2. Antonides, Gerrit & Manon de Groot, I. & Fred van Raaij, W., 2011. "Mental budgeting and the management of household finance," Journal of Economic Psychology, Elsevier, vol. 32(4), pages 546-555, August.
    3. Manel Baucells & Woonam Hwang, 2017. "A Model of Mental Accounting and Reference Price Adaptation," Management Science, INFORMS, vol. 63(12), pages 4201-4218, December.
    4. Raghuram Iyengar & Kamel Jedidi & Skander Essegaier & Peter J. Danaher, 2011. "The Impact of Tariff Structure on Customer Retention, Usage, and Profitability of Access Services," Marketing Science, INFORMS, vol. 30(5), pages 820-836, September.
    5. Cheng, Andong & Baskin, Ernest, 2021. "Disproportionate redemption discounting: Mental accounting of discounted credit," Journal of Business Research, Elsevier, vol. 128(C), pages 156-163.
    6. Ina Garnefeld & Andreas Eggert & Markus Husemann-Kopetzky & Eva Böhm, 2019. "Exploring the link between payment schemes and customer fraud: a mental accounting perspective," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 595-616, July.
    7. Shi, Haijiao & Chen, Rong & Xu, Xiaobing, 2021. "How reward uncertainty influences subsequent donations: The role of mental accounting," Journal of Business Research, Elsevier, vol. 132(C), pages 383-391.
    8. Arkes, Hal R. & Hirshleifer, David & Jiang, Danling & Lim, Sonya, 2008. "Reference point adaptation: Tests in the domain of security trading," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(1), pages 67-81, January.
    9. Bernadette Kamleitner, 2008. "Coupling: the implicit assumption behind sunk cost effect and related phenomena," Working Papers 22, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    10. Ran Kivetz, 2003. "The Effects of Effort and Intrinsic Motivation on Risky Choice," Marketing Science, INFORMS, vol. 22(4), pages 477-502, December.
    11. Dai, Xianchi & Fishbach, Ayelet, 2013. "When waiting to choose increases patience," Organizational Behavior and Human Decision Processes, Elsevier, vol. 121(2), pages 256-266.
    12. Kim Huat Goh & Jesse C. Bockstedt, 2013. "The Framing Effects of Multipart Pricing on Consumer Purchasing Behavior of Customized Information Good Bundles," Information Systems Research, INFORMS, vol. 24(2), pages 334-351, June.
    13. Ume Habibah & Ibne Hassan & Muhammad Shahid Iqbal & Naintara, 2018. "Household behavior in practicing mental budgeting based on the theory of planned behavior," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-14, December.
    14. Sanjiv Erat & Sreekumar R. Bhaskaran, 2012. "Consumer Mental Accounts and Implications to Selling Base Products and Add-ons," Marketing Science, INFORMS, vol. 31(5), pages 801-818, September.
    15. Peter Cappelli & Shinjae Won, 2016. "How You Pay Affects How You Do: Financial Aid Type and Student Performance in College," NBER Working Papers 22604, National Bureau of Economic Research, Inc.
    16. Johannes Abeler & Felix Marklein, 2017. "Fungibility, Labels, and Consumption," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 99-127.
    17. Yizhao Jiang, 2022. "The Influence of Payment Method: Do Consumers Pay More with Mobile Payment?," Papers 2210.14631, arXiv.org.
    18. Mehmet Nar, 2015. "The Effects of Behavioral Economics on Tax Amnesty," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 580-589.
    19. Christoph Bühren & Thorben C. Kundt, 2013. "Worker or Shirker – Who Evades More Taxes? A Real Effort Experiment," MAGKS Papers on Economics 201326, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    20. White, Tiffany Barnett & Novak, Thomas P. & Hoffman, Donna L., 2014. "No Strings Attached: When Giving It Away Versus Making Them Pay Reduces Consumer Information Disclosure," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 184-195.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:34:y:2017:i:c:p:287-293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.