IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i3p1022-1027.html
   My bibliography  Save this article

Amount off versus percentage off—when does it matter?

Author

Listed:
  • González, Eva M.
  • Esteva, Eduardo
  • Roggeveen, Anne L.
  • Grewal, Dhruv

Abstract

This research explores the impact of discount framing on consumer perceptions of value and purchase intentions. An amount off discount frame results in higher perceptions of value and purchase intentions for higher-priced products (priced over $100). Three studies consistently support this prediction. Experiment 1 examines the interactive effects of amount off versus percentage off deals as a function of higher versus lower-priced products. For a higher-priced product, consumers prefer the offer more in terms of both value and purchase intentions when the discount is presented as amount off rather than the percentage off. For a lower-priced product (less than $100), the results, though not statistically significant, indicate a reverse pattern. Experiment 2 demonstrates that the result (amount off is better than percentage off) generalizes across higher price levels. Finally, Experiment 3 affirms that the result (amount off is better than percentage off for higher-priced products) generalizes across discount levels.

Suggested Citation

  • González, Eva M. & Esteva, Eduardo & Roggeveen, Anne L. & Grewal, Dhruv, 2016. "Amount off versus percentage off—when does it matter?," Journal of Business Research, Elsevier, vol. 69(3), pages 1022-1027.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:3:p:1022-1027
    DOI: 10.1016/j.jbusres.2015.08.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315003513
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2015.08.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Janiszewski, Chris & Lichtenstein, Donald R, 1999. "A Range Theory Account of Price Perception," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(4), pages 353-368, March.
    2. Grewal, Dhruv & Marmorstein, Howard & Sharma, Arun, 1996. "Communicating Price Information through Semantic Cues: The Moderating Effects of Situation and Discount Size," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 23(2), pages 148-155, September.
    3. Puccinelli, Nancy M. & Chandrashekaran, Rajesh & Grewal, Dhruv & Suri, Rajneesh, 2013. "Are Men Seduced by Red? The Effect of Red Versus Black Prices on Price Perceptions," Journal of Retailing, Elsevier, vol. 89(2), pages 115-125.
    4. Grewal, Dhruv & Roggeveen, Anne L. & Lindsey-Mullikin, Joan, 2014. "The Contingent Effects of Semantic Price Cues," Journal of Retailing, Elsevier, vol. 90(2), pages 198-205.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lai, Yufeng & Yue, Chengyan & Watkins, Eric & Barnes, Mike, 2023. "Investigating the Efficacy of Government Rebates: A Case of the Smart Irrigation System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.
    2. Santana, Shelle & Thomas, Manoj & Morwitz, Vicki G., 2020. "The Role of Numbers in the Customer Journey," Journal of Retailing, Elsevier, vol. 96(1), pages 138-154.
    3. Mookherjee, Satadruta & Lee, Jennifer J. & Sung, Billy, 2021. "Multichannel presence, boon or curse?: A comparison in price, loyalty, regret, and disappointment," Journal of Business Research, Elsevier, vol. 132(C), pages 429-440.
    4. Raza, Ali & Wasim, Manahil & Ishaq, Muhammad Ishtiaq, 2024. "Virtual reality-based product displays to inspire consumers’ purchase intentions: An experimental study," Journal of Business Research, Elsevier, vol. 175(C).
    5. Chang, Hsiu-Hua & Lu, Long-Chuan & Kuo, Tzu-Chiao, 2024. "Are discounts useful in promoting suboptimal foods for sustainable consumption and production? The interaction effects of original prices, discount presentation modes, and product types," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    6. Fecher, André & Robbert, Thomas & Roth, Stefan, 2019. "Same price, different perception: Measurement-unit effects on price-level perceptions and purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 129-142.
    7. Cheng, Andong & Baskin, Ernest, 2021. "Disproportionate redemption discounting: Mental accounting of discounted credit," Journal of Business Research, Elsevier, vol. 128(C), pages 156-163.
    8. González, Eva M. & Meyer, Jan-Hinrich & Paz Toldos, M., 2021. "What women want? How contextual product displays influence women’s online shopping behavior," Journal of Business Research, Elsevier, vol. 123(C), pages 625-641.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feng, Shan & Suri, Rajneesh & Chao, Mike Chen-Ho & Koc, Umit, 2017. "Presenting comparative price promotions vertically or horizontally: Does it matter?," Journal of Business Research, Elsevier, vol. 76(C), pages 209-218.
    2. TINA M. Ashok K. Lalwani & David H. Silvera & Kent B. Monroe, 2012. "Price Promotion (In)consistency and Consumers’ Brand Evaluations: The Role of Reference Prices," Working Papers 0022, College of Business, University of Texas at San Antonio.
    3. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    4. Grandi, Benedetta & Cardinali, Maria Grazia, 2022. "Colours and price offers: How different price communications can affect sales and customers’ perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    5. Eisenbeiss, Maik & Wilken, Robert & Skiera, Bernd & Cornelissen, Markus, 2015. "What makes deal-of-the-day promotions really effective? The interplay of discount and time constraint with product type," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 387-397.
    6. Pechtl, Hans, 2004. "Das Preiswissen von Konsumenten: eine theoretisch-konzeptionelle Analyse," Wirtschaftswissenschaftliche Diskussionspapiere 01/2004, University of Greifswald, Faculty of Law and Economics.
    7. Mukherjee, Sudipta & Pandelaere, Mario, 2023. "The influence of self-decided prices on expected quality," Journal of Business Research, Elsevier, vol. 160(C).
    8. Grewal, Dhruv & Roggeveen, Anne L. & Nordfält, Jens, 2016. "Roles of retailer tactics and customer-specific factors in shopper marketing: Substantive, methodological, and conceptual issues," Journal of Business Research, Elsevier, vol. 69(3), pages 1009-1013.
    9. Rezaei, Sajad, 2015. "Segmenting consumer decision-making styles (CDMS) toward marketing practice: A partial least squares (PLS) path modeling approach," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 1-15.
    10. Bhattacharyya, Ayan & Jha, Subhash & Guha, Abhijit & Biswas, Abhijit, 2023. "Should firms display the sale price using larger font?," Journal of Retailing, Elsevier, vol. 99(1), pages 17-25.
    11. Matthew Lee & Dr. Frankie Law, 2015. "The discount framing in different pricing schemes: Combined versus partitioned pricing," Journal of Business & Management (COES&RJ-JBM), , vol. 3(4), pages 439-458, October.
    12. Bastian Popp & Herbert Woratschek, 2017. "Consumer–brand identification revisited: An integrative framework of brand identification, customer satisfaction, and price image and their role for brand loyalty and word of mouth," Journal of Brand Management, Palgrave Macmillan, vol. 24(3), pages 250-270, May.
    13. Aparna Sundar & James J. Kellaris, 2017. "How Logo Colors Influence Shoppers’ Judgments of Retailer Ethicality: The Mediating Role of Perceived Eco-Friendliness," Journal of Business Ethics, Springer, vol. 146(3), pages 685-701, December.
    14. Franco Valdez, Ana Dolores & Valdez Cervantes, Alfonso & Motyka, Scott, 2018. "Beauty is truth: The effects of inflated product claims and website interactivity on evaluations of retailers' websites," Journal of Business Research, Elsevier, vol. 90(C), pages 67-74.
    15. Wenyan Zhou & Oliver Hinz & Alexander Benlian, 2018. "The impact of the package opening process on product returns," Business Research, Springer;German Academic Association for Business Research, vol. 11(2), pages 279-308, September.
    16. Priya Jha-Dang, 2006. "A Review of Psychological Research on Consumer Promotions and a New Perspective Based on Mental Accounting," Vision, , vol. 10(3), pages 35-43, July.
    17. Hyeong Kim & Thomas Kramer, 2006. "“Pay 80%” versus “get 20% off”: The effect of novel discount presentation on consumers’ deal perceptions," Marketing Letters, Springer, vol. 17(4), pages 311-321, December.
    18. Choi, Pilsik & Coulter, Keith S., 2012. "It's Not All Relative: The Effects of Mental and Physical Positioning of Comparative Prices on Absolute versus Relative Discount Assessment," Journal of Retailing, Elsevier, vol. 88(4), pages 512-527.
    19. Villanova, Daniel & Bodapati, Anand V. & Puccinelli, Nancy M. & Tsiros, Michael & Goodstein, Ronald C. & Kushwaha, Tarun & Suri, Rajneesh & Ho, Henry & Brandon, Renee & Hatfield, Cheryl, 2021. "Retailer Marketing Communications in the Digital Age: Getting the Right Message to the Right Shopper at the Right Time," Journal of Retailing, Elsevier, vol. 97(1), pages 116-132.
    20. Barone, Michael J. & Coulter, Keith S. & Li, Xingbo, 2020. "The Upside of Down: Presenting a Price in a Low or High Location Influences How Consumers Evaluate It," Journal of Retailing, Elsevier, vol. 96(3), pages 397-410.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:3:p:1022-1027. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.