Refine
Document type
- Bachelor Thesis (2)
Language
- English (2)
Has full text
- No (2)
Is part of the Bibliography
- No (2)
Keywords
- Discount (2) (remove)
Course of studies
- IBW - Internationale Betriebswirtschaft (2) (remove)
Can the different framing of price promotions decrease consumer value perception and their willingness to pay? Prior research provides evidence of differences in consumer perception of economically equivalent monetary and non-monetary price promotions. In detail, many research works suggest that non-monetary promotions positively affect consumer perception and are therefore preferred over monetary ones that are associated with a drop in quality. Results suggest that this biased consumer behavior is caused by the framing of the promotion, causing difference in cognitive processing and dissimilarities in perception of benefits and product quality. We put this theoretical foundation to the test on the Turkish consumer market of non-durable goods, in order to contrast effects on consumers of the economically equivalent formats ‘50% discount’ as a monetary and ‘buy-one-get-one-free’ as a non-monetary promotion. In particular, the focus was set on analyzing attractiveness perception of the two promotion types and the development of WTP pre- and post-promotion. To achieve this, the non-durable goods rice and antibacterial soap were selected as product stimuli to stage scenarios before, during and after a promotion period. Four sets of questionnaires were shared on social media and distributed to a total of 919 participants via randomization generator. The survey results put forward empirical validation of product-related decrease in value perception as a consequence of both promotion types, namely the ‘promotional effect’. Nevertheless, our data provide no evidence for the ‘framing effect’ in neither attractiveness perception nor post-promotional WTP. This paper aims to bridge the gap on empirical research of key theoretical implications of promotional impact on consumer behavior and to benefit domestic and foreign marketing managers conducting business operations on the Turkish market.
People are surrounded by many offers every day, a discount, a gift or a special sale. A walk through a store can lead us to purchases which are not necessary but in our minds are worth it. Pricing may be one of the easiest ways to influence consumers and to make products more attractive.
This study compares the pricing practices “use of word free/free offers” for example buy one get one free and “discount.” Those two practices have different influences on the consumer behaviour and the product perception. A discount tends to be less worth it than a free offer if an average customer would be asked. A survey of over 200 people was made to witness this statement.
This number of people were divided into two groups which were asked different questions via an A/B testing survey. Group A was asked about a free product, and group B was asked about a discount. Additionally, this study includes a field validation in the form of observation. Customers of a transregional drugstore were observed when buying a product. This drugstore where the validation was made offers a bi-weekly brochure with promoted products. Among them are discounts and free offers. The number of sales was compared and analysed to confirm the results of the survey.