Testing the decoy effect in the presence of store brands
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 9 February 2015
Abstract
Purpose
The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the presence or absence of a store brand.
Design/methodology/approach
Several experiments have been conducted to test the validity of the decoy effect and rule out some explanations for the changes in demand that take place. The experiments consider three brands (two national brands and one store brand). All the brand names and prices employed in the experiment are real.
Findings
The results indicate that, as expected, the inclusion of a decoy in the choice set significantly increases the consumer’s relative preference for the promoted product; however, more importantly, the results also show that store brand consumers are more influenced by a decoy than national brand consumers.
Originality/value
This paper presents the first evidence of the decoy effect in the presence of store brands.
Keywords
Citation
Sellers-Rubio, R. and Nicolau-Gonzalbez, J.-L. (2015), "Testing the decoy effect in the presence of store brands", International Journal of Retail & Distribution Management, Vol. 43 No. 2, pp. 113-125. https://doi.org/10.1108/IJRDM-07-2013-0144
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited