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A comparison of two types of price discounts in shifting consumers' attitudes and purchase intentions

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  • Teng, Lefa

Abstract

This study focuses on consumer responses to two different types of price discounts: 1) a price discount with and 2) a price discount without a minimum purchase requirement. The effects of the discounts are examined to the extent that they may change consumers' attitudes and purchase intentions regarding a particular brand, by moving it from consumers' hold set to consideration set. A three-phase study on fast-food services in China was conducted. The results of the study provide new empirical insights regarding how to use a brand categorization model to predict the effects of different types of price discounts on consumer purchase behavior. More specifically, this study demonstrates that when a price discount with and without a minimum purchase requirement is applied to a brand in a hold set, the brand moves from the consumers' hold set to the consideration set. However, the effects of the two types of price discounts on consumers' attitudes and purchase intentions are not significantly different. The results are discussed in relation to brand management and marketing strategies in consumer goods industries.

Suggested Citation

  • Teng, Lefa, 2009. "A comparison of two types of price discounts in shifting consumers' attitudes and purchase intentions," Journal of Business Research, Elsevier, vol. 62(1), pages 14-21, January.
    • Handle: RePEc:eee:jbrese:v:62:y:2009:i:1:p:14-21
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    Cited by:

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    3. Junjie Lv & Zichen Wang & Yuqing Huang & Tong Wang & Yuanzhuo Wang, 2020. "How Can E-Commerce Businesses Implement Discount Strategies through Social Media?," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
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    5. Waheed Kareem Abdul, 2023. "Probing permanent price reduction strategy of manufacturer brands: pre- and post-purchase perceptions," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 455-469, December.
    6. Cheng, Yung-Hsiang & Tseng, Wei-Chih, 2016. "Exploring the effects of perceived values, free bus transfer, and penalties on intermodal metro–bus transfer users' intention," Transport Policy, Elsevier, vol. 47(C), pages 127-138.
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    9. Ahmad, Shimi Naurin & Richard, Marie-Odile, 2014. "Understanding consumer's brand categorization across three countries: Application of fuzzy rule-based classification," Journal of Business Research, Elsevier, vol. 67(3), pages 278-287.
    10. Sreen, Naman & Purbey, Shankar & Sadarangani, Pradip, 2018. "Impact of culture, behavior and gender on green purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 177-189.

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