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Consumer Response to Seasonal Clearance Sales: Experimental Analysis of Consumer Personality Traits in Self Service Stores

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  • Rajagopal

    ()
    (Tecnológico de Monterrey, Campus Ciudad de México)

Abstract

Consumer responses to clearance sales, both in terms of consumer satisfaction with the decision process and in terms of subsequent store choice behavior, are explored in the paper through four controlled experiments conducted involving clearance sales in a consumer choice and decision satisfaction context. The results suggest that consumer response to clearance sales is driven to a large extent by two factors: the effect of a clearance sale on the available options of goods and the degree of store loyalty. Response to a clearance sale was found to be a function of two primary forces-the degree to which a consumer was personally committed to the discount sales alternative, and changes in the difficulty of making a decision due to limitation of buying options. Overall, the discussion of results of the four studies presented in the paper demonstrates that consumer response to clearance sales, both in terms of decision satisfaction levels and observed store-loyalty behavior, are strongly influenced by the variables of price sensitivity, attractiveness of products, store-loyalty and perceived value on available brands.

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File URL: http://alejandria.ccm.itesm.mx/egap/documentos/2006-03-MKT.pdf
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Bibliographic Info

Paper provided by Tecnológico de Monterrey, Campus Ciudad de México in its series Marketing Working Papers with number 2006-03-MKT.

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Date of creation: Aug 2006
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Handle: RePEc:ega:wpaper:200603

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Web page: http://www.ccm.itesm.mx/egap/
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Keywords: Customer value; product attractiveness; advertising; sales motivation; retailing; brand value;

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  1. Peter M. Guadagni & John D. C. Little, 1983. "A Logit Model of Brand Choice Calibrated on Scanner Data," Marketing Science, INFORMS, INFORMS, vol. 2(3), pages 203-238.
  2. Dhar, Ravi, 1997. " Consumer Preference for a No-Choice Option," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 24(2), pages 215-31, September.
  3. Perraudin, William R. M. & Sorensen, Bent E., 2000. "The demand for risky assets: Sample selection and household portfolios," Journal of Econometrics, Elsevier, Elsevier, vol. 97(1), pages 117-144, July.
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