The discounting of discounts and promotion thresholds
Article Abstract:
This study examines consumers' response to retailers' price promotions. It shows that consumers discount the price discounts. It also suggests that the discounting of discounts and changes in purchase intention depend on the discount level, store image, and whether the product advertised is a name brand or a store brand. The study goes one step further to investigate the existence of promotion thresholds. We use experimental data and an econometric methodology to gather empirical evidence that consumers do not change their intentions to buy unless the promotional discount above a threshold level. This threshold point differs for name brands and store brands. Specifically, we find that the threshold for a name brand is lower than that for a store brand. In other words, stores can attract consumers by offering a small discount on name brands while a larger discount is needed for a similar effect for a store brand. The study also indicates the existence of a promotion saturation point above which the effect of discounts on changes in consumers' purchase intention is minimal. These results confirm consumers' S-shaped response to promotions. (Reprinted by permission of the publisher.)
Publication Name: Journal of Consumer Research
Subject: Social sciences
ISSN: 0093-5301
Year: 1992
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An investigation into the social context of early adoption behavior
Article Abstract:
The social context of new product adoption behavior is a key aspect of the diffusion of innovations. Yet little is known about the process by which social contextual factors influence individual adoption decisions. This research develops and tests a model of the effects of perceived consumption visibility and superordinate group influence on new product intention formation. A structural equation model is used in an experimental design to provide a comprehensive view of variable interdependencies and to incorporate measurement error. Key findings indicate that (1) perceived visibility of consumption significantly affects consumers' predictions of normative outcomes (i.e., social approval from referents) and (2) superordinate group influence has a direct effect on consumers' perceptions of consumption visibility and expectations of both personal (i.e., intrinsically valued product benefits) and normative outcomes from early adoption. The results have important implications for understanding the role of consumption symbols as mechanisms for social differentiation and integration. (Reprinted by permission of the publisher.)
Publication Name: Journal of Consumer Research
Subject: Social sciences
ISSN: 0093-5301
Year: 1992
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Exploring more than 24 hours a day: a preliminary investigation of polychronic time use
Article Abstract:
The present exploratory study investigates the concept of polychronic time use through the development and preliminary testing of a proposed scale, the Polychronic Attitude Index (PAI). Polychronic time use is defined and reviewed in relation to role overload and household demographic characteristics. When a sample of consumers in New Jersey was surveyed, both the PAI and role overload were found to be related to different types of polychronic time use. Overall, this research demonstrates that the concept of polychronic time use contributes to our understanding of consumer behavior and raises questions worthy of future research. (Reprinted by permission of the publisher.)
Publication Name: Journal of Consumer Research
Subject: Social sciences
ISSN: 0093-5301
Year: 1991
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