Harm in price promotions: when coupons elicit reactance

Abstract

Purpose

This research aims to demonstrate that coupons with short durations for redemption can backfire, lowering consumers’ attitudes toward the company.

Design/methodology/approach

Two experimental studies in the restaurant context demonstrate the backfire effect. A boundary condition of the effect as well as the underlying psychological process are identified.

Findings

Consumers respond adversely to coupons with restrictive requirements for redemption – in particular, a short duration. Study 1 indicates that while a short-duration (vs long-duration) coupon may backfire when its face value is low, this backfire effect is attenuated when the coupon’s face value is high. Furthermore, Studies 1 and 2 provide evidence that psychological reactance is the process underlying this backfire effect.

Originality/value

Consumers respond negatively to coupons with restrictive requirements for redemption because they perceive them as a company’s attempt to limit their freedom of choice. Companies should take measures, including careful target marketing, to avoid rousing this reaction from their consumers.

Citation

Trump, R.K. (2016), "Harm in price promotions: when coupons elicit reactance", Journal of Consumer Marketing, Vol. 33 No. 4, pp. 302-310. https://doi.org/10.1108/JCM-02-2015-1319