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The paper seeks to examine cross‐cultural differences in how consumers evaluate “scratch and save” (SAS) promotions (which are characterized by uncertainty of savings…
The paper seeks to examine cross‐cultural differences in how consumers evaluate “scratch and save” (SAS) promotions (which are characterized by uncertainty of savings outcomes) between Canada and Korea, where the promotion tool is widely used but the countries have different cultural values.
An experiment was conducted to examine cross‐cultural differences in SAS promotion evaluations between Canada (n=77) and Korea (n=78).
SAS promotions effectively stimulate favorable shopping intentions in Canada, a country with a low uncertainty avoidance culture, more so than in Korea, a country with a high uncertainty avoidance culture. However, subjects in Korea show consistently higher savings expectations from SAS promotions than subjects in Canada. Thus, the results report that consumers with the highest savings expectations do not necessarily have the highest intention to shop. In addition, in Korea, a SAS promotion with guaranteed minimum savings is found to be very effective due to reduced ambiguity about its outcome.
The study suggests cross‐cultural differences in the applicability of the disjunction effect.
The findings suggest that when SAS promotions are presented in a country with high uncertainty avoidance, retailers should explicitly indicate the value of the guaranteed minimum savings. By promising guaranteed savings, retailers can reduce consumers' relatively high concerns about unknown SAS outcomes, which results in a greater advantage in building favorable perceptions.
Very little work has been undertaken into SAS promotions and no known empirical research has been undertaken into cross‐cultural differences. This paper fills some of the gaps.
The main purpose of this paper is to examine consumer perceptions of “scratch and save” (SAS) promotions, which are popular store‐level promotional tools. This paper…
The main purpose of this paper is to examine consumer perceptions of “scratch and save” (SAS) promotions, which are popular store‐level promotional tools. This paper particularly focuses on investigating the moderating effects of consumers' price consciousness and savings expectations.
Two laboratory experimental studies were employed to examine consumer responses to SAS promotions.
The results of two experiments show that SAS promotions positively affect consumer perceptions of offer value and store prices, and consumers' intentions to shop and spread positive word‐of‐mouth. In particular, the effects of SAS promotions are moderated by consumer price consciousness and expected savings. Furthermore, the first study shows that the level of claimed savings of SAS promotions does not favorably affect consumer reactions. The second study also shows that consumers' discounting of expected savings increases as the level of claimed savings of SAS promotions increases.
Although SAS promotions are widely used by various types of retailers, there really is little known as to how consumers respond to SAS promotions. By providing evidence of the effectiveness of SAS promotions, this paper enables pricing researchers to extend issues related to such promotional tools.
For retailers, the most distinctive finding of this paper is that the level of claimed savings may not significantly affect consumer perceptions and shopping intentions, although an SAS promotion would be an effective promotional tool.
As a preliminary effort to examine the effects of SAS promotions, this paper offers a discussion of the future research opportunities.