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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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    Cited by:

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    3. 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.
    4. 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.
    5. Christopher L. Newman & Melissa D. Cinelli & Douglas Vorhies & Judith Anne Garretson Folse, 2019. "Benefitting a few at the expense of many? Exclusive promotions and their impact on untargeted customers," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 76-96, January.
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    7. 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.
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    10. 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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