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This study aims to examine whether adding a quantity scarcity message to a monetary discount helps to improve consumers’ offer-related perceptions and intentions, and how the effectiveness of that message compares with adding time restriction to the offer.

Two experiments, where participants evaluated retail ads and responded to relevant measures, were conducted in two country markets.

Adding either a quantity scarcity message or time restriction to a monetary discount increases the potency of a retail offer. Further, when an offer ad emphasizes product and price-related cues in a balanced manner, time restriction results in more favorable consumer perceptions than scarcity. However, this difference in the messages’ efficacy disappears when the offer strongly emphasizes price-related cues.

The US market sample is more homogeneous than the Indian one. Discounts were presented in terms of advertised reference prices; further research with other discount formats is desirable.

Understanding the relative efficacy of quantity scarcity message and time restriction in discounted retail offers can give managers flexibility in the use of these tools.

This paper addresses scholars’ call for theory-grounded research that provides guidance to retailers on the use of sales promotional tools.

In this article we analyze price discounts and fixed price offers in terms of their comparative impact on consumer valuation of products. Using a model of consumer valuation, we explore the interaction between the negative quality effect and the positive monetary sacrifice effect associated with price discounts. This model suggests that intermediate levels of price discounts will be more desirable than a fixed price offer. However, a fixed price offer may be more desirable than both high and low levels of price discounts. The results from an experiment conducted to test this model showed support for the predictions from the model.

The purpose of this article is to assess consumer evaluations of bonus packs offered with price discounts.

Four laboratory experiments and a content analysis were conducted.

The opportunity to obtain a price discount was available for approximately 25 per cent of the bonus packs found in a content analysis. Consumers evaluated an offer containing a low bonus amount and a high price discount more positively than an offer containing a high bonus amount and a low price discount, despite both offers providing a similar underlying price per unit. Moreover, consumer evaluations of a bonus pack can be enhanced by providing a price discount rather than offering it at the regular price.

Future research could examine consumer reactions to bonus packs offered with discounts contingent on obtaining multiple quantities (e.g. BOGO; a multiple-unit price providing a lower price per unit than the single unit’s price) to determine whether the results of the present research extend to these situations.

Manufacturers and retailers can evoke more positive consumer reactions to a bonus pack offered with a price discount if specifying a high amount for the latter rather than the former (if high amounts cannot be specified for both). It is possible for retailers to enhance consumer evaluations of a bonus pack by providing a price discount.

This research is the first to examine consumer evaluations of promotional offers containing both a bonus pack and a price discount.

The purpose of this paper is to examine whether or not a calendar time anomaly exists in the number and discount of seasoned equity offerings (SEOs) from 1980‐2004.

Regression analysis was used on data from SEOs offered from 1980 to 2004 to determine the significance of the SEO discount over days‐of‐the‐week and the significance of factors relating to SEOs offered on a Monday. The characteristics of Monday SEOs were compared to those offered on other days of the week.

Monday has the fewest number of SEOs with a statistically significant larger offer price discount, on average, than issues done on other days of the week. This has been attributed to the Monday effect, in part to the implementation of Rule 10b‐21, which led to reduced short‐selling pressure and reduced the uncertainty associated with the weekend effect on the part of the issuing firm.

This paper adds value to the finance literature in that it extends the research on calendar‐time anomalies in financial markets. It also adds to the existing research on SEOs and notes characteristics in this particular section of the markets that may be important to both issuers and investors.

The purpose of this paper is to examine how consumers respond differently to “scratch and save (SAS)” promotions versus “tensile price claims (TPC).” SAS promotions provide a possible discount (determined probabilistically) but conceal the exact amount until purchase. Tensile price claims (e.g. “up to 25 percent off on items marked with a red tag”) make imprecise price promotional claims. In addition to making indefinite price claims, SAS promotions (e.g. scratch and save up to 25 percent off) include gambling elements; the exact discount is determined randomly for individual consumers by a scratch‐off card.

Two experimental studies are conducted.

Evidence from two experiments indicates that consumers perceive SAS promotions to be more ambiguous than tensile price claims. In addition, the results demonstrate consumer uncertainty towards SAS promotions but also consumer willingness to gamble: deep discount SAS promotions are perceived as more attractive than limited‐scope tensile price claims.

The findings suggest that consumers perceive SAS offers more enticing than limited tensile price claims as the proposed discount increases. Furthermore, establishing a minimum savings offer could be used to encourage consumers to shop at retailers offering SAS promotions.

Limited work has focused on examining how consumers respond to SAS promotions because SAS promotions are a relatively new store‐level promotional tool. Furthermore, no research effort has been extended to directly compare consumers' perceptions of SAS promotions with tensile price claims.

While fixed price offers are quite common in the marketplace, there is limited empirical evidence that documents the effectiveness of these offers in comparison to price discounting tactics. Drawing on information processing theory we provide a conceptual framework that explains the differential impact of fixed price and price discounting tactics. The empirical study shows that consumers’ perceptions of quality and value for the product were higher when price information was presented in a fixed format (versus a discount). Furthermore, perceptions of sacrifice were higher in the discount format than the fixed price format. Overall, this study finds empirical support for the notion that fixed price formats may be more effective than price discounts.

The purpose of this paper is to empirically test whether stock liquidity and investor sentiment have interactive effects on seasoned equity offers (SEOs) price discounts in Australia.

The authors focus on the implicit cost borne by firms when issuing seasoned equity capital. This cost is measured as the relative difference between the SEO offer price and the last close price prior to the announcement of the issue. The primary measure of investor sentiment is a composite index constructed similar to that in Baker and Wurgler (2007).

The results show that, in periods of deteriorating investor sentiment, the increase in SEO price discounts for firms with illiquid stocks is larger than the corresponding increase for firms with liquid stocks. This suggests that, as sentiment wanes, investors become even more concerned about illiquidity, leading to even greater required compensation for holding illiquid assets. The authors find that information asymmetry is positively related to SEO price discounts but this relation is not affected by changing investor sentiment.

Collectively, the empirical results provide support for the argument that price discount of SEOs represents compensation to investors for bearing costs associated with illiquidity. The results also lend some support to the behavioural argument that pricing of equity offers is dependent upon investor sentiment, particularly for firms with illiquid stocks.

The ability for firms to raise capital in a cost-effective manner is critical for firm growth and stability. Investors require compensation for bearing the costs of illiquidity of their investments in equity. Accordingly, firms need to be conscious of their stocks’ existing liquidity and its influence on the cost of raising additional capital which, in turn, affects their operational stability and investment opportunities.

Ultimately, the implications of this study will assist firms in capital-raising decisions, investors in making portfolio investment decisions, and investment banks in setting offer prices on equity issues.

To the best of the authors’ knowledge, this is the first study to examine the interaction between investor sentiment and SEO price discounts in Australia.

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

The purpose of this study is to investigate the effects of price discount frames and price discount levels on consumer perceptions about the quality of the service product, the value of the discount, their purchase intentions and their willingness to spread the word of mouth about the discount savings across different types of services.

The study uses an experiment design method using three interesting variables: discount format, discount level and service industry type. The experiment included four different types of low‐end price service levels: restaurants, hotels, mailing services, and retail services.

The findings indicate that price discount frames and discount levels do affect consumers' perceptions on the value of the discount, the quality of the service, their intention to purchase and their willingness to engage in WOM advertising.

The practical implication for service firms that want to use price discount promotions to encourage sales and increase revenue is that they should carefully consider the price range and the value or quality of image they intend to signal when using these different price discount frames and the service they are selling to determine the discount level to use.

This paper is valuable to low‐end service marketers that seek to use price discount promotions to encourage sales and increase revenue.

The purpose of this study was to examine the effects of price discounts on products perceived to provide hedonic value vs those perceived to evoke displeasure. Also examined were the effects of various discount levels on consumer intentions to purchase.

The study design was a 2 (emotion-evoked) × 2 (price) × 3 (level of discount) mixed-factorial design. In this study, 182 participants were presented with several products and indicated whether they would shop with a competitor offering various price discounts on pleasure- vs displeasure-evoking products.

ANOVA results indicated a significant main effect of price discounts on intention to purchase and a significant interaction between price discount and type/price of product. Discounts mattered more between certain levels (10 and 50 per cent) than others (50 versus 70 per cent). Discounts mattered more for hedonic products (pleasure-evoking) than those that evoked displeasure; however, price trumped all factors such that discounts mattered most when price of product is high.

Limitations include age range of participants and that intentions to shop were measured. Future research should examine price effects on other socio-demographic groups and actual behavior.

Retailers would benefit from using price discounts as a competitive strategy, with attention given to the “percentage-off” levels that are perceived to be steeper. Discounts are more effective when the product offers hedonic value or when price is high.

To our knowledge, this is the first study to examine the relationship between “percentage-off” price discounts on hedonic products. This study contributes to the literature on pricing affect.