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The impact of price and extra product promotions on store preference

Michael F. Smith (Indrajit Sinha is Associate Professors of Marketing at the Fox School of Business and Management, Temple University, Philadelphia, USA.)
Indrajit Sinha (Indrajit Sinha is Associate Professors of Marketing at the Fox School of Business and Management, Temple University, Philadelphia, USA.)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Publication date: 1 March 2000

Abstract

Focuses on consumer evaluations of store preference when presented with promotional deals that are equivalent on a unit‐cost basis and/or are equivalent on a total cost basis but are worded differently. An experimental design setting is used to examine the effect of three deal frames: one, stated in terms of a straight price promotion (“50 percent off”), the second, as an extra‐product or volume promotion (“buy one, get one free”), and a third as a “mixed” promotion (“buy two, get 50 percent off”). Four typical supermarket product categories are considered in a shopping scenario to investigate the effect of two category‐based moderating factors: product stock‐up characteristic and price level. Results show that the nature of framing significantly affects consumer deal preference and store preference even though the deals are equivalent on a unit cost basis and two of the deals are also equivalent on a total cost basis.

Keywords

Citation

Smith, M.F. and Sinha, I. (2000), "The impact of price and extra product promotions on store preference", International Journal of Retail & Distribution Management, Vol. 28 No. 2, pp. 83-92. https://doi.org/10.1108/09590550010315269

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