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Consumer reactions to price discounts across online shopping experiences

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  • Sheehan, Daniel
  • Hardesty, David M.
  • Ziegler, Alexander H.
  • Chen, Haipeng (Allan)

Abstract

Consumers generally encounter a multitude of price discounts during a single visit to a retailers’ website, yet past research has predominantly examined price discounts in a singular manner. We examine how the influence of a price discount’s magnitude on consumer purchase intentions evolves during an online shopping trip. In doing so, we demonstrate that a price discount’s magnitude is less predictive of consumers’ purchase intentions earlier, but it becomes more predictive later, during an online shopping trip. Thus, placing shallow price discounts early in a shopping visit may enhance the effectiveness of a firm’s portfolio of price discounts.

Suggested Citation

  • Sheehan, Daniel & Hardesty, David M. & Ziegler, Alexander H. & Chen, Haipeng (Allan), 2019. "Consumer reactions to price discounts across online shopping experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 129-138.
    • Handle: RePEc:eee:joreco:v:51:y:2019:i:c:p:129-138
    DOI: 10.1016/j.jretconser.2019.06.001
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    7. Arnoud V. den Boer & N. Bora Keskin, 2022. "Dynamic Pricing with Demand Learning and Reference Effects," Management Science, INFORMS, vol. 68(10), pages 7112-7130, October.
    8. Alaimo, Leonardo Salvatore & Fiore, Mariantonietta & Galati, Antonino, 2022. "Measuring consumers’ level of satisfaction for online food shopping during COVID-19 in Italy using POSETs," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
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