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The objective of this paper is to examine the framing effects of discount presentation format in comparative price advertising in a low‐price and a high‐price product context. In particular, the authors study whether identical discounts presented in percentage and absolute terms result in different consumer perceptions of transaction value and purchase intention. Although price promotions have been the subject of previous research, a closer examination of the potential moderating influence of discount size in both contexts is warranted.

Two separate experiments were designed to isolate the effects of the manner in which discounts are numerically expressed and the size of the discount on consumers' perceptions of a retail price promotion in a low‐price and a high‐price product context.

The effects of discount framing in comparative price promotions are found to be influenced by discount size in the case of the low‐product context but not the high‐price one.

It is recommended that the study be replicated for other types of low‐price and high‐price products to confirm the generalisability of the results for each product context.

Retail managers' choice of discount presentation format for both low‐ and high‐price product contexts, and in the case of the former the additional manipulation of discount size, have an impact on the ability of comparative price promotions to accelerate purchases. Meanwhile policy makers should continue to assign significant time and resources to investigating concerns about misleading price comparison based promotions.

The paper provides original insights into the importance of considering the joint effects of discount presentation format and discount size on consumers' perceptual and behavioural responses to retail price promotions, unlike previous research, which has examined these framing effects separately.

Previous research indicates the aversive effect of low consumer ratings on consumers’ purchasing decisions. This paper aims to apply decision justifiability theory to investigate how price promotions – price discount and price bundling – can reduce this effect.

Two scenario-based experiments were administered among college students (Experiment 1) and online consumer panels (Experiment 2) to test the research hypotheses.

When time-to-purchase is long (vs short), a large discount is more effective in alleviating consumers’ negative responses toward products with low consumer ratings. However, when a price discount is presented as a bundle rather than a separate deal, a small discount size becomes as attractive as a large discount size for consumers with a longer time-to-purchase.

This paper identifies two controllable factors, price discounts and price bundling, that could help to alleviate the negative impact of low consumer ratings. Marketing managers can apply the findings of this paper as guidelines to deal with the aversive effect of low consumer ratings.

This paper makes an initial attempt to examine situations where consumers would be less averse to products with low consumer ratings. It identifies the roles of two price promotions (i.e. price discount size and price bundling) and an important contextual factor (i.e. time-to-purchase) that influence consumers’ decision justifiability and, subsequently, alter consumers’ online purchase decisions for such products.

Addresses a number of issues relating to determining whether products should be ordered independently and therefore shipped as a single‐product order, or co‐ordinated and shipped as a group, or multiproduct, order from a single source. Factors which might influence the decision include the level or volume of demand, the distribution of demand across products, the weight of items and the attractiveness of the quantity discount offered. Uses an optimal inventory‐theoretic model, that incorporates transport weight breaks and quantity discounts, to assess when product orders should be combined and what products should be ordered separately. The effects of these decisions on the order interval, the number of order groupings, the proportion of items ordered independently, the proportion of attractive discounts forgone in favour of consolidation, and the relative cost savings, are examined using an extensive set of simulated data that are based on a firm in the automobile industry supply chain.

The purpose of this paper is to examine how factors that affect the processing of bundled price information moderate consumer response to a price discount on the bundle. Literature on categorical vs piecemeal processing of information predicts that consumers will be inclined to process a bundled price categorically unless circumstances encourage a piecemeal processing approach. Marketing relevant variables that foster piecemeal processing should result in stronger effects for discount size on bundle choice.

This paper reports two experiments that demonstrate that the effect of discount size on bundle choice is moderated by increased salience of price information and lower familiarity with the purchase situation, both of which increase item price processing.

When the presentation format encouraged item price processing with more salient item prices or a less familiar purchase situation, a discount on the bundle significantly increased the likelihood of bundle choice. When circumstances did not encourage item price processing, discounts on the bundle relative to the item prices had little effect on choice.

Additional research is recommended to test boundary conditions, the effects of additional presentational/situational factors and explicit consumer welfare implications.

Results indicate that a price discount on a bundle is only effective/necessary when the purchase situation motivates and enables consumers to engage in piecemeal processing of item price information. When large price discounts are offered on the bundle, marketers should create a situation that encourages item price processing, in order to maximize the effect.

This paper adds to a relatively new perspective in the bundling literature which has not fully examined if and when consumers process item price information. It is found that responsiveness to price discounts is enhanced by managerially relevant variables that increase the likelihood of item price processing.

This paper extends the search for small firms and exchange efficiency effects on seasoned stocks to the new issues market on a sample of placings drawn from the UKs Official List, Unlisted Securities Market and Third Market. Tests of means and regressions are undertaken to examine the relationships between sizes of new issues discounts, sizes of firms, and the exchange on which their equities are traded. Despite the observation that new issues discounts tend to be larger for equities of firms traded on exchanges with lower listing requirements, there is little evidence that the differences in discounts are affected by firm size.

The size effect that there exist return differences between small market-cap firms and large market-cap counterparts in the stock market has become one of the most controversial capital market anomalies. This paper aims to interpret this effect, including both the size premium and the size discount.

A dynamic capital mobility model (DCMM) is proposed, and the model’s explanatory ability is validated via simulation.

This study’s simulation results indicate that the observed size effect can be originated from the combination of the pure size effect and the investors’ herding behavior. Although the size premium, that average returns of small firms are higher than those of large firms, is more prevalent in the stock market, this study’s model implies that the size discount is also possible, which is largely an empirical issue. The pure size effect per se cannot reproduce the size premium. Only if the herding effect dominates the pure size effect would there exist the size premium.

Although the literature provides miscellaneous explanations for the size effect, they are still inconclusive. So far there has been no theory to directly investigate the size effect and to explicitly explore the impact of investors’ trading behavior on the size effect. To the best of the author’s knowledge, this paper fills in this gap and proposes a DCMM to interpret the size effect for the first time. In addition, while the literature focuses on the size premium only, this study covers not only the size premium but also the size discount.

Retailers are known to present tensile price claims (TPCs) stating high discounts to entice shoppers. Prior research on TPCs suggests that high TPC discounts increase purchase intentions. However, the current study proposes, first, that the TPC discount shifts expected price discount (EPD) and, second, that the gap between the actual price discount and the EPD influence perceptions of the discount deal. Support for these propositions would suggest that high TPC discounts will only be effective when they closely match the actual price discount. Therefore, the purpose of this paper was to evaluate the effectiveness of exaggerated maximum-discount TPCs.

Two experiments were used. Study 1 investigated the effect of exposure to a TPC on EPD. Study 2 examined discount discrepancy as a mediator of the relationship between a TPC and consumer perceptions (i.e. perceived savings and price fairness) and purchase intentions. PROCESS and ANOVA were used for the analysis.

This research showed that exposure to a TPC influenced consumers’ EPDs. As TPC discount increased, EPD increased and the discount discrepancy (i.e. actual price discount minus EPD) decreased (and, in some cases, became negative). The discount discrepancy influenced consumer perceptions of savings and fairness, as well as purchase intentions. Consequently, when the actual price discount encountered was not as large as the advertised TPC discount, the results showed a negative, indirect influence of exaggerated maximum-discount TPCs on consumers’ discount perceptions, mediated by the discount discrepancy.

Previous TPC studies found that the size of the TPC discount positively influences consumers’ discount perceptions, implying that larger discounts are more effective. However, this approach does not take into consideration the notion that larger TPC discounts increase consumer expectations about the size of discount and these expectations are used as a frame to evaluate a discount deal. The findings of the current research show a negative, indirect influence of exaggerated TPC discount on consumer perceptions and purchase intentions through discount discrepancy. Therefore, this study provides a new perspective to explain the influence of TPC discount size on consumer perceptions.

The purpose of this paper is to capture the dynamic variations in sales of a product based upon the dynamic estimation of the time series data and propose a model that imitates the price discounting and promotion strategy for a product category in a retail organization.

Time series data relating to sales has been used to model the sales estimates using moving average and proportional and derivative control; thereafter a sales forecast is generated to estimate the sales of a particular product category. This provides valuable inputs for taking lot sizing decisions regarding procurement of the products and selection of suppliers. A hybrid model has been proposed and explained with a hypothetical case, which considerably impacts the sales promotion and intelligent pricing decisions.

A conceptual framework is developed for modeling the dynamic price discounting strategy in retail using fuzzy logic. The model imitates sales promotion and price discounting strategy. This has helped minimize the inventory cost thereby keeping the profitability of the retail organization intact.

There is no appropriate empirical data to verify the models. In light of the research approach (modeling based upon historical time series data of a particular product category) that was undertaken, there is a possibility that the research results may be valid for the product category that was selected. Therefore, the researchers are advised to test the proposed propositions further for other product categories.

The study provides valuable insight on how to use the real-time sales data for designing a dynamic automated model for product sales promotion and price discounting strategy using fuzzy logic for a retail organization.

This paper aims to study the impact of existence and lack of discount on the relationships between one manufacturer and one retailer under the cooperative and the non-cooperative games and the members’ profits are compared.

In the first approach, the manufacturer’s price function is constant, and in the second approach, this price function is a decreasing function with respect to lot size. These approaches are modeled through three games structure, including two Stackelberg games and one cooperative game.

Some numerical instances comprising sensitivity analysis are provided, and then the members’ profits in different scenarios are compared. This paper reveals that in the presented models, whether the members are inclined to change their profits.

This paper presents a tool of decision-making for the type of relationships of members in two different circumstances, and an approach is also presented to maximize the members’ profit.

In this paper, the relationships between one manufacturer and one retailer are studied under six different circumstances, where pricing, cooperative advertising and inventory cost are considered simultaneously. Also, a different model is presented to make a balance in individual profits and gain more profit for each member compared to the cooperative and non-cooperative game.

The purpose of this paper is to analyse the NAV discount of European REITs listed in France, the Netherlands and the UK between 2003 and 2014, considering elements of both “rational” and “noise trader” approaches.

The analysis examines the hypothesis that discounts (premiums) are the result of leverage, size, liquidity, risk, performance, investment activity and sentiment. The regressions are initially run against the traditional NAV discount, subsequently using the unlevered NAV discount measure introduced by Morri et al. (2005) in order to clean out the bias generated by the level of leverage. The NAV discount is then adjusted for investor sentiment (appraisal reduction) with the aim of better identifying firm-specific factors, considering distortions induced by sentiment.

Higher liquidity commands lower discounts for French REITs, while Dutch and British REITs, which trade in markets characterized by a higher number of average daily transactions, do not seem to feature discounts resulting from liquidity. For all three samples, operational risk and performance are significant in explaining the NAV discount, the former having a positive relationship with the discount, and the latter a negative one. When measured using the average sector discount, sentiment has a profound effect on the discount, accounting alone for 10-15 per cent of the explanatory power of the model.

REITs listed in different markets behave differently. When the discount is adjusted in order to remove the bias resulting from the level of debt, the relationship between leverage and the unlevered discount becomes less pronounced in all cases.

The paper considers a new approach to NAV discount puzzle that takes into account market sentiment and appraisals.