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When and how should retailers rationalize the size and duration of price discounts?

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  • Weathers, Danny
  • Swain, Scott D.
  • Makienko, Igor

Abstract

Price discounts are common retail promotional tools that are defined by their size and duration. Consumers possess a general schema in which they believe that retailers are motivated to associate larger price discounts with shorter durations and smaller price discounts with longer durations. However, factors influencing promotion management frequently lead retailers to present discount size/duration combinations that are incongruent with this schema. What are the consequences for retailers of presenting consumers with such discounts, and what can retailers do to overcome detrimental effects of incongruent discount terms?

Suggested Citation

  • Weathers, Danny & Swain, Scott D. & Makienko, Igor, 2015. "When and how should retailers rationalize the size and duration of price discounts?," Journal of Business Research, Elsevier, vol. 68(12), pages 2610-2618.
  • Handle: RePEc:eee:jbrese:v:68:y:2015:i:12:p:2610-2618
    DOI: 10.1016/j.jbusres.2015.04.010
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    References listed on IDEAS

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    Cited by:

    1. Li, Zhen & Yada, Katsutoshi & Zennyo, Yusuke, 2019. "Duration of Price Promotion and Retail Profit: An In-depth Study Based on Point-of-Sale Data," MPRA Paper 93047, University Library of Munich, Germany.
    2. Saghiri, Soroosh & Wilding, Richard & Mena, Carlos & Bourlakis, Michael, 2017. "Toward a three-dimensional framework for omni-channel," Journal of Business Research, Elsevier, vol. 77(C), pages 53-67.
    3. Richard C. Hanna & Scott D. Swain & Paul D. Berger, 2016. "Optimizing time-limited price promotions," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(2), pages 77-92, July.
    4. Bogomolova, Svetlana & Szabo, Marietta & Kennedy, Rachel, 2017. "Retailers' and manufacturers' price-promotion decisions: Intuitive or evidence-based?," Journal of Business Research, Elsevier, vol. 76(C), pages 189-200.

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