Consumer evaluations of different promotion types and price presentations: The moderating role of promotional benefit level

David M. Hardesty, William O. Bearden

Research output: Contribution to journalArticlepeer-review

139 Scopus citations

Abstract

The effects of promotion type (i.e., price discounts and bonus packs) and price presentation (i.e., dollars and percentages) across promotional benefit levels were investigated in three experimental studies. The results suggest, for the products considered, that price discounts and bonus packs were valued similarly for both low and moderate promotional benefit levels, while price discounts were preferred when high promotional benefit levels were employed. Additionally, promotions presented in percentage terms were preferred when the benefit level was high. The implications of these results for retailers and manufacturers are that percentage price presentations should be used when large discounts are being offered. Furthermore, it appears that bonus packs are a viable alternative to price discounts when promotion levels are small or moderate since they have less of a deleterious effect on the brand.

Original languageEnglish
Pages (from-to)17-25
Number of pages9
JournalJournal of Retailing
Volume79
Issue number1
DOIs
StatePublished - 2003

Keywords

  • Consumer promotions
  • Framing effects
  • Information processing

ASJC Scopus subject areas

  • Marketing

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