Price threshold and discount saturation point in Singapore

Abstract

A study is reported, which investigated Singapore consumers’ price thresholds and saturation points for price discounts. The study shows that consumers discount the offered price discount, i.e. they lower the dollar gain value. This discounting of discounts increases significantly with the increase in advertised discounts. Very similar patterns of responses are obtained for products and services. The study also indicates that the saturation point for price discounts of 20 to 30 percent is found to be the same in Singapore and the USA. However, a price threshold of less than 10 percent is found for Singapore consumers, compared to 15 percent in the USA. Frequent price promotions in Singapore may have lowered the products’ expected price and appear to lead consumers to defer purchases when regular prices are offered.

Citation

Marshall, R. and Bee Leng, S. (2002), "Price threshold and discount saturation point in Singapore", Journal of Product & Brand Management, Vol. 11 No. 3, pp. 147-159. https://doi.org/10.1108/10610420210430042