Gambled Price Discounts_Revised Manuscript.pdf (276.88 kB)
Gambled price discounts: A remedy to the negative side effects of regular price discounts
journal contribution
posted on 2018-06-18, 08:25 authored by Sascha Alavi, Torsten Bornemann, Jan Wieseke© 2015, American Marketing Association. In the context of price discounts, a special type of price promotion, in which savings depend on the outcome of a gamble and are thus uncertain, has recently achieved some popularity. The question arises as to whether such gambled price discounts (GPDs) incur the negative reference price effect-that is, a downward shift in customers' internal reference price (IRP)-which is often associated with regular price discounts (RPDs). From several studies, including two longitudinal field experiments, the authors find that GPDs indeed alleviate the negative reference price effect: IRPs and actual repurchasing tend to be lower for RPDs than for GPDs and a no-discount control condition. Moreover, the authors explore the psychological underpinnings of these effects and show that the different consequences of GPDs versus RPDs on IRPs are more pronounced if information regarding product quality is limited. The authors demonstrate that findings are robust to variations of GPD discount levels and the
History
School
- Business and Economics
Department
- Business
Published in
Journal of MarketingVolume
79Issue
2Pages
62 - 78Citation
ALAVI, S., BORNEMANN, T. and WIESEKE, J., 2015. Gambled price discounts: A remedy to the negative side effects of regular price discounts. Journal of Marketing, 79(2), pp. 62-78.Publisher
American Marketing AssociationVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Publication date
2015-03-01Notes
This paper was accepted for publication in the journal Journal of Marketing and the definitive published version is available at https://doi.org/10.1509/jm.12.0408ISSN
0022-2429eISSN
1547-7185Publisher version
Language
- en