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Trapping Fake Discounts as Drivers of Real Revenues and Their Impact on Consumer’s Behavior in India: A Case Study

Author

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  • Iqbal Thonse Hawaldar

    (College of Business Administration, Kingdom University, Riffa 40434, Bahrain)

  • Mithun S. Ullal

    (Department of Commerce, Manipal Academy of Higher Education, Manipal 576104, India)

  • Felicia Ramona Birau

    (Faculty of Social Science, University of Craiova, 200585 Craiova, Romania)

  • Cristi Marcel Spulbar

    (Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania)

Abstract

This empirical study contributes towards identifying the effect of both fake and real discounts in the Indian marketing environment. A common but unsustainable practice in India is to increase the selling price and then offer a discount on the product. Increasing sales based on fake discount pricing strategy is a primary business development objective in India. The discounts, however, vary across store type and time and are based on product features. The selected databases were collected from the top five Indian e-commerce portals in terms of volume of sales, and from popular brick and motor outlets of tier 2 and tier 3 cities in India. The empirical results indicate that offers based on price in India had an impact of 2.8 times higher than the actual quality of the product. The outcomes suggest that marked price has a significant impact on consumer’s behavior. The results also indicate the existence of a strong correlation between trapping fake discounts and purchase by deceiving and persuading customers in India. Research is empirical in nature and respondents have been selected based on purposive sampling. The study is limited to tier 2 and 3 cities of India for 250 days, and the results are applicable to online and offline retail stores.

Suggested Citation

  • Iqbal Thonse Hawaldar & Mithun S. Ullal & Felicia Ramona Birau & Cristi Marcel Spulbar, 2019. "Trapping Fake Discounts as Drivers of Real Revenues and Their Impact on Consumer’s Behavior in India: A Case Study," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:17:p:4637-:d:261047
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    Cited by:

    1. Mithun S. Ullal & Iqbal Thonse Hawaldar & Rashmi Soni & Mohammed Nadeem, 2021. "The Role of Machine Learning in Digital Marketing," SAGE Open, , vol. 11(4), pages 21582440211, October.
    2. Anna Cierniak-Emerych & Robert Golej & Hanna Różycka, 2021. "Working Conditions and Their Importance for Eliminating Errors in the Order Picking Process, Using an E-Commerce Commercial Enterprise as an Example," Sustainability, MDPI, vol. 13(23), pages 1-16, December.
    3. Shahjahan Ali & Shahnaj Akter & Csaba Fogarassy, 2021. "Analysis of Circular Thinking in Consumer Purchase Intention to Buy Sustainable Waste-To-Value (WTV) Foods," Sustainability, MDPI, vol. 13(10), pages 1-14, May.
    4. Kepulaje Abhaya Kumar & Prakash Pinto & Iqbal Thonse Hawaldar & Cristi Spulbar & Ramona Birau, 2021. "Crude oil futures to manage the price risk of natural rubber: Empirical evidence from India," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(10), pages 423-434.
    5. Lauma Balode & Kristiāna Dolge & Dagnija Blumberga, 2021. "The Contradictions between District and Individual Heating towards Green Deal Targets," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    6. Peiman Ghasemi & Amir Mehdiabadi & Cristi Spulbar & Ramona Birau, 2021. "Ranking of Sustainable Medical Tourism Destinations in Iran: An Integrated Approach Using Fuzzy SWARA-PROMETHEE," Sustainability, MDPI, vol. 13(2), pages 1-32, January.
    7. Daniel Iulius Doaga, 2020. "Literature Survey Onsustainable Fiscal Policy Within The Countries Of Central And Eastern Europe," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 115-120, February.
    8. Durdana Qaiser Gillani & Syed Ahmad Saad Gillani & Muhammad Zahid Naeem & Cristi Spulbar & Elizabeth Coker-Farrell & Abdullah Ejaz & Ramona Birau, 2021. "The Nexus between Sustainable Economic Development and Government Health Expenditure in Asian Countries Based on Ecological Footprint Consumption," Sustainability, MDPI, vol. 13(12), pages 1-15, June.

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