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While regular price discount (RPD) promotions remain popular, marketers have also introduced gambled price discounts (GPDs) in recent years. There is a need to understand the performance and limitation of the relatively novel GPD, because the importance of pricing and the surprise element inherent in GPD could cause the promotions to backfire when inappropriately applied. This study compared the performance of GPD and RPD via consumers' perception of their attractiveness through quality cues of product types (experience and search goods) and word-of-mouth (WOM) content (affective and cognitive).

Analysis of variance (ANOVA) was applied on a 2 (product type: experience goods [hotel rooms] vs. search goods [printers]) × 2 (word-of-mouth type: affective vs. cognitive) × 2 (price promotion type: GPD vs. RPD) between-subjects scenario experimental design (resulting in eight conditions).

Analysis of the 600 returns revealed that RPD does well for both search and experience goods, but GPD is more attractive for the marketing of experience goods. GPD works better with cognitive than with affective WOM.

GPD is a relatively new domain in marketing research. This study contributes to GPD literature and behavioral pricing literature. The study also adds to a better understanding of the dynamics, usefulness and limitations of GPD by considering the roles played by surprise element inherent in GPD and comparing it with RPD.

“Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed findings about the effectiveness of this promotion compared to the straightforward discount on a single unit of a product. The goal of this research is to employ a theoretical lens to examine the effectiveness of “Buy X Get X Free” promotions.

The theoretical framework was tested in two experiments using different products and samples. The data collected from each experiment were analyzed using both descriptive and inferential techniques to assess support for the theoretical arguments.

Findings reveal that at identical levels of per-unit discount, the “Buy X Get X Free” promotion is perceived less favorably by consumers than a straightforward single-unit discount. Consumers perceive lower transaction value and acquisition value and, thereby, a lower purchase intention, from the “Buy X Get X Free” promotion compared to a single-unit discount.

This research was conducted keeping in mind the popularity of the “Buy X Get X Free” promotion in the real world. The findings caution retailers against indiscriminately using this promotional frame.

Using a theoretical lens, this research proposes and validates a framework to systematically examine consumers' perceptions of the two popular discount frames. The proposed theoretical framework provides a richer understanding of the underlying consumer psychology that drives the evaluation of these promotions. Further, primary data from lab experiments validates the framework. The research also helps advance the understanding of consumer evaluation of sales promotions in general.

The purpose of this paper is to investigate the opaque inventory information disclosure strategy for an online retailer who sells two substitutable products to customers in two selling periods.

The authors develop a two-period model where an online retailer sells two substitute products with two inventory composition structures to maximize profits. The authors investigate the optimal inventory disclosure decision from both ex post and ex ante perspectives. Sensitivity analysis is performed to investigate the effects that discount rate, transaction cost and the probability of agreeable inventory situation have on the equilibrium disclosure outcome. The authors also consider risk-averse customers and horizontally differentiated products to highlight the robustness of our results.

The authors find that the online retailer will choose the opaque information disclosure when attempting to increase revenue and reduce the mismatch of supply and demand in both ex post and ex ante inventory information conditions. Comparing with ex post disclosure strategies, ex ante opaque disclosure is optimal in a larger price region, and the total revenues gap between opaque disclosure and complete disclosure gradually increase as discount rate, transaction cost or the probability of agreeable inventory situation decreases. Furthermore, strategic customers may tend to be risk neutral when faced with opaque inventory information in a two-period sales setting.

This current paper is the first paper to study the online retailer's inventory information disclosure strategy in two selling periods. Moreover, this paper presents the conditions under which the online retailer should share complete or opaque inventory information with customers to maximize the online retailer's total revenues.

This paper aims to clarify the effect of discount discrepancy (DD) on consumers’ purchase intention (PI). The authors propose, test and provide evidence and explanations about the moderation of justification in the relation between consumers’ perceived DD and PI.

The authors conducted three experimental studies with a 2 × 2 factorial design, focusing on consumers’ processing of price discounts. Participants were informed that this study aimed to gather opinions on fashion, clothing and retail sales promotions. They accessed the questionnaire via Qualtrics. Each participant took part in only one study. The experimental conditions were manipulated through scenarios.

Study 1 tested and supported the moderation of justification on the effect of DD on PI. Study 2 tested and supported the moderation of the type of justification for the effect of DD on PI. Study 3 confirmed the findings in Study 2 and revealed the more effective type of justification.

The authors focused on a typically hedonic product category (fashion clothing). Further research should include a wider variety of goods and services, which could lead to different explanations or generalizations.

Sales promotions must refrain from generating DD between the initial price discount and the subsequent smaller discounts. Practitioners must evaluate the gains of an initial, more considerable percentage discount to attract consumers to the store and sell them other products versus the cost of losing sales because of DD. Management should recognize the importance of giving the correct justification for perceived DD, aligning the firm’s justification with the consumer’s motivation to buy the product.

The authors offer subsidies for effective consumer protection policies.

By studying the influence of justification on the effect of DD on PI, the authors propose a mechanism that would reduce the negative effect of DD on consumers’ PI.

The purpose of this study is to determine whether the fine wine market is efficient between homogeneous lots and heterogeneous lots.

Auction price data for homogeneous (or solid) lots of fine wines was analyzed to create price prediction models. Those models were used to predict the expected auction price for the bottles within heterogeneous lots. Lastly, models were created to explain and predict the differences between expected and realized prices for heterogenous wine lots.

The results show that large inefficiencies exist. The more complex and expensive the heterogeneous lot, the greater the discount relative to what would have been realized if the bottles had been sold individually. This discount can exceed 50% of the expected auction price.

Heterogeneous lots may arise as a practical requirement from the auction house. Restaurant buyers probably have little interest in such lots because of the inclusion of wines the restaurant will be unable to sell. Collectors may be uniquely positioned to benefit from this price discount.

These results are unique in the literature, because the price dynamics of heterogeneous (or mixed) lots of fine wines have not previously been studied.

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price promotions or discounts of organic products. The present study aims to fill this research gap.

To develop alternative hypotheses about consumers’ behavioural responses to price promotions of organic fast-moving consumer good (FMCG) products, the authors used the researcher-introspection method in a pre-study. To test the hypotheses developed based on the pre-study, the authors conducted a field experiment on online advertising of an FMCG sold in drugstores. In the field experiment, the authors exposed consumers to an online ad featuring either a price promotion (−20%) or the regular price of the product. The ads also varied in terms of whether they contained explicit organic claims or not, and whether they included implicit organic cues or not.

The price promotion increased the clickthrough rate of the ad both when combined with an explicit organic claim and when combined with the implicit cue of green product pack. The results suggest that consumers do not have significant suspicions about price promotions of organic products, but rather presume that the price promotion of an organic FMCG product is a periodical promotional action, similar to the price promotions for conventional, non-organic products. Also, consumers seem to assume that the regular prices of organic FMCG products are so high that the retailer/manufacturer can well afford periodic price discounts.

The present research shifts the focus of organic marketing research from the premium price levels to the effectiveness of price promotions and discounts. Further, the present results contrast with certain earlier studies that have questioned the effectiveness of price promotions for organic products.

The results have different implications for marketing managers of brands not yet providing organic product versions in the market, of brands producing non-organic products, which cannot easily be rendered organic, and of brands offering organic products in the market.

This is, to the best of the authors’ knowledge, the first empirical study and field experiment on price promotions of organic products, including explicit organic claims.

As an important form of the e-commerce industry, online group buying is under the spotlight from with two sides: cheaper price but longer waiting time. The purpose of this paper is to adequately investigate the interaction between saving and waiting time of group buying comprehensively.

To fill the research gap, the authors elaborate a dual-channel supply chain (SC) with regular retail (individual buying) and group-buying channel, and formulate the demand based on the consumer utility with the positive effect of saving money and the negative effect of wasting time.

The authors find that power structure only changes the optimal prices, instead of the waiting time. The selling price mainly influences consumer demands, instead of the price discount of group buying. The SC profits are only positive to the channel preference, and it is the decisive parameter of consumers' choice. The price sensitivity lays a more remarkable impact on the SC compared to the time sensitivity. Above all, the price is the main factor of group buying, instead of time.

These results underscore the improvement for the dual-channel SC of group buying, providing managerial insights for the group-buying industry.

Food waste is a severe problem affecting the supply chain due to its significant adverse social and environmental effects. Even if the topic is hotly debated in the literature, there is a lack of research about the success factors influencing food waste prevention initiatives retailers undertake.

The research analyzes how several variables (i.e. product-related variables and technology-enabling variables) might impact the success of the sales of products close to the expiration date that is sold at a discounted price. Data from 390.000 products sold at a discounted price in 2020 and 2021 by a large Italian food retailer were examined with a regression analysis.

The results highlight that both product-related and technology-enabling variables influence the success of food prevention initiatives aimed at selling products close to the expiration date at a discounted price. In particular, the authors stress the importance of digital technologies in supporting food waste prevention initiatives.

The study offers several practical implications for managers in structuring a waste prevention initiative. The introduction of digital technologies, the monitoring of specific variables or the ability to find synergies with other food waste prevention initiatives are discussed to support retailers in reducing food losses.

The paper is focused on the retailer perspective, which is barely investigated due to the difficulty in finding data.

Cross-selling becomes critical for business success as pent-up travel demand drives travelers to spend more on vacations. The primary purpose of this research is to identify if an unexpected discount leads to consumers' additional purchases online. This research proposes effective cross-selling strategies across hospitality sectors.

Two experiments were conducted to investigate factors that influence travelers' add-on spending. Study 1 determined the psychological mechanism of unexpected discounts on hotel customers' additional spending by individual thinking styles. A 2 (discount: none vs surprise) x 2 (thinking style: holistic vs analytic) quasi-experimental design was utilized. Study 2 applied the identified pricing strategy by individual thinking styles to cruise line add-on selling. A 2 (discount: none vs surprise) x 2 (product type: hedonic vs utilitarian) x 2 thinking style (holistic vs analytic) quasi-experiment was used.

The findings indicate that an unexpected discount increases holistic thinkers' overall travel spending, regardless of add-on types. Although the unexpected discount effect on analytic thinkers' overall spending was significant, an unexpected discount enhanced their intentions to purchase a hedonic add-on.

Hospitality operators can improve cross-selling strategies with a surprise discount offer. Offering add-on items in the same transaction with a cabin booking will increase add-on purchases. Hotels can make add-on purchases more appealing by emphasizing the experiential aspects of a hotel stay.

This research broadens knowledge of cross-selling by linking add-on purchases to discount pricing on a primary product. The findings provide new strategies to stimulate add-on purchases and maximize profitability.

Showrooming presents a complex and evolving challenge to retail managers, as it signifies the emergence of new forms of exchange rules. The purpose of this research is to investigate how factors responsible for information search and evaluation affect showrooming and also consider the consumer mindset as a moderator.

This research undertakes three experimental designs to investigate how the push (i.e. assortment size), pull (i.e. price discount), and mooring (i.e. sunk cost) factors influence consumers' showrooming intention. Specifically, consumers' maximizing tendency plays the role of moderator.

The results reveal that push, pull, and mooring factors are significantly related to consumers' showrooming intention. Furthermore, the findings show that maximizers have higher showrooming intention than satisficers in the context of the push, pull, and mooring factors.

By integrating the push-pull-mooring framework and the maximizing mindset theory, this research proposes a novel research model and the empirical testing results support six hypotheses. The findings add to the body of knowledge in showrooming behavior by taking consumer mindset into account. The results also provide implications for practitioners to develop their retail strategies.