Children's response to sales promotions and their impact on purchase behavior

Despite the growth in children's purchasing power, surprisingly little is known about how children respond to sales promotions. We conduct two experiments to address this issue. Study 1 shows that elementary-aged (second and fifth grade) children's purchase decisions are influenced by the presence of sales. Study 2 demonstrates that both age groups favor conceptually easier promotions, even when the sale is inferior. Additionally, we find that children have difficulty applying mathematical concepts to sales promotions, regardless of classroom mastery of the associated operations. Together, these results indicate that elementary-aged children routinely incorporate sales into purchase decisions, sometimes with suboptimal results.     

Mix or Match? Consumer Spending Decisions in Conditional Promotions

Conditional multi‐item promotions are a prevalent marketing tactic whereby consumers have to buy a certain number of products to get a discount. This paper examines how framing a multi‐item promotion in terms of savings on multiple items versus a single item (e.g., “buy two, get X% off on both” vs. “buy two, get 2X% off on the cheaper item”) affects consumers’ decision‐making and product choices. Two laboratory studies and a field study at a boutique clothing store demonstrate that the “2X% on cheaper” framing makes consumers more likely to select similarly priced primary and secondary items. This strategy is driven by increased focus on promotional savings under the “2X% on cheaper” framing, which leads consumers to spend more on their secondary items. Overall, this research shows how a subtle change in the framing of multi‐item promotions changes consumers’ product selection strategies and shopping basket composition.     

The Selection of Freebies and the Preference for Freebie Promotions—A Perspective on Item Characteristics

Research on consumer decision making has mainly focused on individual products; however, many products are purchased with other items as part of a promotional package. This paper explores how the characteristics (hedonic versus utilitarian) of the items in freebie promotional packages (e.g., buy one item and get a different item for free) influence consumers' preference for the promotional package. Additionally, the authors examine how the characteristics of the focal item influence consumers' choice of either a hedonic or a utilitarian freebie item. Five experiments, rooted in the concepts of consumer avoidance of overloading negative emotions and motivation to seek hedonic pleasure, show that a package with one utilitarian and one hedonic item generates higher purchase intentions and willingness to pay than a package with either two hedonic or two utilitarian items. Furthermore, consumers who purchase a hedonic (utilitarian) focal item are more likely to choose a utilitarian (hedonic) freebie. These effects exist not only in hypothetical scenarios but also in an incentive‐compatible design. Moreover, the impact of the focal item characteristics on consumer choice of freebie is moderated by acquisition format and time separation. The authors also explore the internal mechanism influencing consumers' freebie choices. The findings have significant implications for both theory and practice. Copyright © 2016 John Wiley & Sons, Ltd.     

The effect of deal exclusivity on consumer response to targeted price promotions: A social identification perspective

Discounts offered selectively to consumers are commonplace in the market and reflect the assumption that individuals will respond positively to targeted discounts. We consider whether exclusive deals evoke more positive responses than inclusive offers, an outcome referred to as a deal exclusivity effect. Contrary to the intuition that targeted promotions will always be evaluated more favorably than inclusive offers, we show that deal exclusivity effects (1) can be attenuated based upon factors influencing the extent to which recipients identify with other deal recipients and (2) are mediated by the offer's ability to enable the recipient to engage in self-enhancement.     

Use it or lose it: purchase acceleration effects of time‐limited promotions

While researchers have examined the impact of retail promotions on purchase acceleration in the past, the distinction between time‐limited and time‐independent promotions has not been made in this context. In this paper, the authors report findings from two studies. In Study 1, it was found that promotions of short duration (time‐limited), such as store coupons, accelerate purchases, whereas promotions of longer duration (time‐independent), such as manufacturer's coupons, have no such impact. In Study 2, the impact of semantic cues was examined highlighting the time‐limited nature of promotions (such as ‘10 Hours Only Sale’), impact on purchase willingness, intent to search further for deals and attitudes towards the deal. Copyright © 2003 Henry Stewart Publications.     

Building the buzz in the hive mind

What is the secret to buzz marketing? Buzz marketing is defined as the amplification of initial marketing efforts by third parties through their passive or active influence. This powerful conceptual framework is illustrated in this paper with practical information on how to build the buzz. Copyright © 2004 Henry Stewart Publications Ltd.     

Judgmental forecasts of time series affected by special events: does providing a statistical forecast improve accuracy?

Time series found in areas such as marketing and sales often have regular established patterns which are occasionally affected by exogenous influences, such as sales promotions. While statistical forecasting methods are adept at extrapolating regular patterns in series, judgmental forecasters have a potential advantage in that they can take into account the effect of these external influences, which may occur too infrequently for reliable statistical estimation. This suggests that a combination of statistical method and judgment is appropriate. An experiment was conducted to examine how judgmental forecasters make use of statistical time series forecasts when series are subject to sporadic special events. This was investigated under different conditions which were created by varying the complexity of the time series signal, the level of noise in the series, the salience of the cue, the predictive power of the cue information and the availability and presentation of the statistical forecast. Although the availability of a statistical forecast improved judgment under some conditions, the use the judgmental forecasters made of these forecasts was far from optimal. They changed the statistical forecasts when they were highly reliable and ignored them when they would have formed an ideal base‐line for adjustment. Copyright © 1999 John Wiley & Sons, Ltd.