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What a great deal…I need that! Updating need drives frugal consumers’ responses to deep discounts

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  • Kapitan, Sommer
  • Mittal, Sarah
  • Sundie, Jill M.
  • Beal, Daniel J.

Abstract

Frugal individuals are known as restrained and disciplined spenders but also exhibit strong deal-seeking tendencies. The unexpected presentation of a deep discount brings these facets of frugality into apparent conflict. How might frugal consumers resolve this conflict? Qualitative analysis of interviews with frugal consumers (study 1) led us to focus on perceptions of need as a potential resolution to these conflicting motives. Two experiments then documented a psychological process by which frugal consumers updated their perceived need for a deeply discounted offering, resulting in enhanced purchase intentions. Less frugal consumers did not exhibit such a process in the face of deep discounts. Study 2 provided evidence consistent with updating need as a mechanism for enhancing purchase intentions. Study 3 replicated these effects, provided direct evidence that need updating in response to deep discounts only occurs among frugal consumers, and revealed that the offering must be at least moderately needed.

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  • Kapitan, Sommer & Mittal, Sarah & Sundie, Jill M. & Beal, Daniel J., 2021. "What a great deal…I need that! Updating need drives frugal consumers’ responses to deep discounts," Journal of Business Research, Elsevier, vol. 134(C), pages 467-479.
    • Handle: RePEc:eee:jbrese:v:134:y:2021:i:c:p:467-479
    DOI: 10.1016/j.jbusres.2021.05.053
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    1. Biraglia, Alessandro & Bowen, Karen T. & Gerrath, Maximilian H.E.E. & Musarra, Giuseppe, 2022. "How need for closure and deal proneness shape consumers’ freemium versus premium price choices," Journal of Business Research, Elsevier, vol. 143(C), pages 157-170.
    2. Bhatt, Siddharth & Pai, Dinesh R. & DelVecchio, Devon, 2023. "The dark side of multiunit discounts: Multiunit discounts reduce rest of basket revenue," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).

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