IDEAS home Printed from https://ideas.repec.org/a/spr/joamsc/v46y2018i6d10.1007_s11747-018-0600-y.html
   My bibliography  Save this article

I thought it was over, but now it is back: customer reactions to ex post time extensions of sales promotions

Author

Listed:
  • Ina Garnefeld

    (University of Wuppertal)

  • Eva Böhm

    (University of Paderborn)

  • Lena Klimke

    (Simon-Kucher & Partners)

  • Andrea Oestreich

    (Produkt + Markt)

Abstract

In many industries, it is common practice to extend sales promotions ex post. That is, firms belatedly extend the initial deadline of a promotion shortly before or directly after the previously announced deadline, with the expectation of increased sales. Four experimental studies indicate both positive and negative effects of these ex post extensions. First, customers perceive an ex post extended promotional offer as less attractive, such that their repurchase intentions diminish. This negative effect arises consistently across different boundary conditions, such as different customer and product types. Second, the positive effect of ex post extensions stems from the possibility that the consumer can still use the promotional offer, so it emerges only for potential customers and existing customers of frequently bought products. Companies can mitigate the dark side of ex post extensions proactively, by designing the extensions to last for only a short time or offering an explanation for the extension that highlights the popularity of the initial promotion.

Suggested Citation

  • Ina Garnefeld & Eva Böhm & Lena Klimke & Andrea Oestreich, 2018. "I thought it was over, but now it is back: customer reactions to ex post time extensions of sales promotions," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1133-1147, November.
  • Handle: RePEc:spr:joamsc:v:46:y:2018:i:6:d:10.1007_s11747-018-0600-y
    DOI: 10.1007/s11747-018-0600-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11747-018-0600-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11747-018-0600-y?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. Allender, William J. & Richards, Timothy J., 2012. "Brand Loyalty and Price Promotion Strategies: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 88(3), pages 323-342.
    2. Scott A. Neslin & Caroline Henderson & John Quelch, 1985. "Consumer Promotions and the Acceleration of Product Purchases," Marketing Science, INFORMS, vol. 4(2), pages 147-165.
    3. repec:cup:judgdm:v:5:y:2010:i:5:p:411-419 is not listed on IDEAS
    4. Verhallen, Theo M. M. & Robben, Henry S. J., 1994. "Scarcity and preference: An experiment on unavailability and product evaluation," Journal of Economic Psychology, Elsevier, vol. 15(2), pages 315-331, June.
    5. Cho, Hyun-Chul & Abe, Shuzo, 2013. "Is two-tailed testing for directional research hypotheses tests legitimate?," Journal of Business Research, Elsevier, vol. 66(9), pages 1261-1266.
    6. Lena Steinhoff & Robert W. Palmatier, 2016. "Understanding loyalty program effectiveness: managing target and bystander effects," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 88-107, January.
    7. Kim, Ju-Young & Natter, Martin & Spann, Martin, 2014. "Sampling, discounts or pay-what-you-want: Two field experiments," International Journal of Research in Marketing, Elsevier, vol. 31(3), pages 327-334.
    8. Folkes, Valerie S, 1988. "Recent Attribution Research in Consumer Behavior: A Review and New Directions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(4), pages 548-565, March.
    9. Lynn, Michael, 1989. "Scarcity effects on desirability: Mediated by assumed expensiveness?," Journal of Economic Psychology, Elsevier, vol. 10(2), pages 257-274, June.
    10. Shuba Srinivasan & Koen Pauwels & Dominique M. Hanssens & Marnik G. Dekimpe, 2004. "Do Promotions Benefit Manufacturers, Retailers, or Both?," Management Science, INFORMS, vol. 50(5), pages 617-629, May.
    11. Verhallen, Theo M. M., 1982. "Scarcity and consumer choice behavior," Journal of Economic Psychology, Elsevier, vol. 2(4), pages 299-322, December.
    12. 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.
    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. Kwangchul Ji & Hong-Youl Ha, 2021. "An Empirical Test of Mobile Service Provider Promotions on Repurchase Intentions," Sustainability, MDPI, vol. 13(5), pages 1-13, March.
    2. Luyao Zhi & Hong-Youl Ha, 2023. "Do New Luxury Hotel Promotions Harm Member Customers?," Sustainability, MDPI, vol. 15(10), pages 1-15, May.

    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. Gierl, Heribert & Huettl, Verena, 2010. "Are scarce products always more attractive? The interaction of different types of scarcity signals with products' suitability for conspicuous consumption," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 225-235.
    2. Catherine Janssen & Joëlle Vanhamme & Adam Lindgreen & Cécile Lefebvre, 2014. "The Catch-22 of Responsible Luxury: Effects of Luxury Product Characteristics on Consumers’ Perception of Fit with Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 119(1), pages 45-57, January.
    3. Hoenow, Nils Christian & Kirk, Michael, 2021. "Does competitive scarcity affect the speed of resource extraction? A common-pool resource lab-in-the-field experiment on land use in northern Namibia," World Development, Elsevier, vol. 147(C).
    4. Di Li & Hu Wang, 2022. "Effects of retailers' free shipping promotions on manufacturers' product sales and product review ratings in multichannel retailing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1912-1925, September.
    5. Yael Steinhart & David Mazursky & Michael Kamins, 2013. "The process by which product availability triggers purchase," Marketing Letters, Springer, vol. 24(3), pages 217-228, September.
    6. Li, Yi & Fumagalli, Elena, 2022. "Spoiled Rotten: How and When Discontinuation of Repetitive and Regular Delight Offers Increases Customer Desire for Revenge," Journal of Retailing, Elsevier, vol. 98(3), pages 412-431.
    7. Avi Herbon & Konstantin Kogan, 2022. "Scarcity and panic buying: the effect of regulation by subsidizing the supply and customer purchases during a crisis," Annals of Operations Research, Springer, vol. 318(1), pages 251-276, November.
    8. Ivan Soraperra, 2009. "Revealed Preferences, Choices, and Psychological Indexes," Working Papers 643, Queen Mary University of London, School of Economics and Finance.
    9. Ziano, Ignazio & Pandelaere, Mario, 2018. "The majority premium: Competence inferences derived from majority consumption," Journal of Business Research, Elsevier, vol. 92(C), pages 339-349.
    10. Gholipour, Hassan Fereidouni & Tajaddini, Reza & Al-mulali, Usama, 2014. "Does personal freedom influence outbound tourism?," Tourism Management, Elsevier, vol. 41(C), pages 19-25.
    11. Alexander Fox & Jana Neuland, 2020. "Limited Availability in Crowdfunding Projects – Guarantee for Profitability," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(4), pages 246-260.
    12. Sheu, Jiuh-Biing, 2011. "Marketing-driven channel coordination with revenue-sharing contracts under price promotion to end-customers," European Journal of Operational Research, Elsevier, vol. 214(2), pages 246-255, October.
    13. Minwoo Lee & Miyoung Jeong & Linda J Shea, 2021. "Length of stay control: Is it a fair inventory management strategy in hotel market?," Tourism Economics, , vol. 27(2), pages 307-327, March.
    14. Ya-Ling Chiu & Yuan-Teng Hsu & Xiaoyu Mao & Jying-Nan Wang, 2021. "An Empirical Study of Holiday Season Discounts: A Comparison Between Third-Party Marketplace Sellers and Fulfilled by Walmart Sellers," SAGE Open, , vol. 11(2), pages 21582440211, June.
    15. Nichols, Bridget Satinover, 2012. "The development, validation, and implications of a measure of consumer competitive arousal (CCAr)," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 192-205.
    16. Parguel, Béatrice & Delécolle, Thierry & Valette-Florence, Pierre, 2016. "How price display influences consumer luxury perceptions," Journal of Business Research, Elsevier, vol. 69(1), pages 341-348.
    17. Parker, Jeffrey R. & Lehmann, Donald R., 2011. "When Shelf-Based Scarcity Impacts Consumer Preferences," Journal of Retailing, Elsevier, vol. 87(2), pages 142-155.
    18. Ailawadi, Kusum L. & Beauchamp, J.P. & Donthu, Naveen & Gauri, Dinesh K. & Shankar, Venkatesh, 2009. "Communication and Promotion Decisions in Retailing: A Review and Directions for Future Research," Journal of Retailing, Elsevier, vol. 85(1), pages 42-55.
    19. Minnema, Alec & Bijmolt, Tammo H.A. & Non, Mariёlle C., 2017. "The impact of instant reward programs and bonus premiums on consumer purchase behavior," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 194-211.
    20. 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.

    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:spr:joamsc:v:46:y:2018:i:6:d:10.1007_s11747-018-0600-y. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.