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To investigate shoppers' decision‐making behaviour under conditions of expected and unexpected in‐store price discounts, using mental accounting theory as the analytical framework.

In an experiment manipulating expected and unexpected discounts on electronic organisers and portable audio players, data collected by questionnaire from 240 first‐year business administration students at a Korean university were used to test two hypotheses predicting the ways in which the savings would be used.

Recipients of unexpected discounts tend to spend the savings in store. If a choice of two products is available, the savings are more likely to be applied to the discounted one than the other. Shoppers commit more actively to planned purchases when price discounts are known in advance. The key factor in purchasing behaviour with respect to discounts is the existence or otherwise of predictions. Shoppers' decision‐making in these conditions is, therefore, context and frame dependent.

The experimental subjects were not representative of the general shopping population, and Korea is a distinctive culture. The findings should be interpreted with caution, but are indicative within limits. Aspects of the topic not investigated by the experiment are identified, and future research directions suggested.

Unadvertised discount available at the point of sale offer several potential benefits to retailers, including reduced costs and increased patronage. Pricing strategists need to understand the theoretical basis of customers' behaviour in response to discount offers, for effective planning.

Adds to the body of knowledge relating to crucial aspect of pricing strategy, and has potential applicability beyond retailing.

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.

Consumers use a variety of information cues to select products; price, however, is the most important. It is possible that the market environment can influence how price is viewed by consumers. The purpose of this study is to: establish validity and reliability for multidimensional aspects of the price construct; to explore how US and Korean students are different or similar in their perception of price cues; and to use countries’ retail environments to explore the differences. Findings of this study show that US subjects have higher levels of prestige sensitivity, price mavenism and value consciousness, than did Korean students. However, Koreans exhibited higher levels of sale proneness and price consciousness. Theoretical and managerial implications were suggested based on these findings.

This paper aims to present a model linking price promotions to checkout donations. It is argued that price promotions evoke two perceptions/emotions, namely, feelings of gratitude and perceived sacrifice of purchase, which consequently, influence the likelihood to donate. Feelings of gratitude dominate when the discount is high, while feelings of sacrifice dominate when the discount is low. Compared to no-discount situations, high discounts enhance consumers’ intention to donate while low discounts reduce this intention.

A total of four studies using shopping scenarios are conducted. Study 1 examines the main effect and the mediating factors. Study 2 replicates the findings in different product categories and at different unit-price levels. Studies 3 and 4 test the moderating effects of customer effort and discount framing.

Findings of the four studies provide support for the proposed model. Compared to no-discount situations, high discounts enhance consumers’ intention to donate, while low discounts reduce this intention. The effects are mediated by feelings of gratitude and sacrifice and moderated by effort obtaining the discount and format of the discount.

Theoretically, this research advances the understanding of consumers’ interpretations of price promotions. All studies are conducted in an online context.

This research informs retailers and charity institutions on the best timing for soliciting checkout donations and indicates specific tactics to enhance consumers’ donations.

This is the first study linking price discounts to the growing phenomenon of checkout donations. The research is different from cause marketing where the donation is included in the price of a specific product. The work also differs from studies examining the spillover effect where additional purchases benefit the consumers instead of a cause.

Risk capital is an important input for management functions. Capital structure decisions, capital budgeting, and ex post performance measurement require different measures of risk capital. While it has become common to estimate risk capital using VaR models, it is not clear that VaR‐based capital estimates are optimal for applications to management functions (e.g. risk management, capital budgeting, performance measurement, or regulation). This article considers three typical problems that require an estimate of credit risk capital: an optimal equity capital allocation; an optimal capital allocation for capital budgeting decisions; and an optimal capital allocation to remove moral hazard incentives from a compensation contract based on ex post performance. The optimal credit risk capital allocation is different for each problem and is never consistent with a credit VaR estimate of unexpected loss. The results demonstrate that the optimal risk capital allocation depends on the objective.

The purpose of this study is to examine if consumers, after missing a price discount on a desired product, prefer to buy the latter at a smaller discount or prefer to pay full price but offset some of it with windfall money.

In four experiments, participants imagine that they have missed an opportunity to buy a box of chocolates at $50 off and are offered a second chance to buy them at a less attractive discount ($25) or pay full price, but partially offset the full price with various windfall lotteries ($25, $50, $75) and gift cards ($50).

Participants are more likely to buy the chocolates at the less attractive (second) discount rather than pay full price using windfall money. In doing so, they show that they are willing to be more, rather than less, poor from an overall wealth perspective to acquire the chocolates. This anomaly surfaces irrespective of the windfall amounts or preference elicitation methods (joint versus separate evaluation). The negative transaction utility of paying full price mediates the purchase method effect (discount versus windfall) on purchase likelihood, but gift cards are able to reduce the negative transaction utility of paying full price.

The research reveals a judgmental anomaly in how consumers assess product acquisition value following a lost opportunity and suggests that marketing managers may be able to reduce consumer inertia by strategically matching rewards with the source of the lost chance.

With timeliness and measurement of asset impairments as well as management opportunistic behaviour being topical, since the issuance of Australian Accounting Standards Board (AASB) 136, this study aims to examine whether assumptions about growth and discount rates made about asset recoverable amounts determine asset impairments.

This study uses a sample of 450 firm-year observations representing 133 Australian listed firms from 2015 to 2018. An estimation model is used where asset impairments is the dependent variable, growth and discount rates are the variables of interest and several impairment indicators are included as controls.

The results show that the decrease in growth rate but not the increase in discount rate affects the recognition of large asset impairments, where firms decrease the growth rate in the year of recognition. A change in discount rate affects asset impairments only when it is higher than the industry average. Hence, the growth rate is the management’s tool of choice in the recognition of asset impairments.

This study provides additional insight into how AASB 136 is used in practice. This includes investigating the tools used by firms in the calculation of asset recoverable amount and whether firms provide important information, as a part of disclosure. The results are of interest to investors and policymakers because they highlight the need for more restrictions around growth rate assumptions and less variation in disclosure.

Recent empirical studies by Antonakakis, Chatziantoniou and Filis (2013), Brogaard and Detzel (2015) and Christou et al. (2017) present evidence, which supports the notion that a rise in economic policy uncertainty (EPU) will lead to a decline in stock prices. The purpose of this paper is to examine US categorical policy uncertainty on stock returns while controlling for implied volatility and downside risk. In addition to the domestic impacts of policy uncertainty, this paper also presents evidence that changes in US policy uncertainty promptly propagates to the global stock markets.

This study uses a GED-GARCH (1, 1) model to estimate changes of uncertainties in US monetary, fiscal and trade policies on stock returns for the sample period of January 1990–December 2018. Robustness test is conducted by using different set of data and modeling techniques.

This paper contributes to the literature in several aspects. First, testing of US aggregate data while controlling for downside risk and implied volatility, consistently, shows that responses of stock prices to US policy uncertainty changes, not only display a negative effect in the current period but also have at least a one-month time-lag. The evidence supports the uncertainty premium hypothesis. Second, extending the test to global data reveals that US policy uncertainty changes have a negative impact on markets in Europe, China and Japan. Third, testing the data in sectoral stock markets mainly displays statistically significant results with a negative sign. Fourth, the evidence consistently shows that changes in policy uncertainty present an inverse relation to the stock returns, regardless of whether uncertainty is moving upward or downward.

The current research is limited to the markets in the USA, eurozone, China and Japan. This study can be extended to additional countries, such as emerging markets.

This paper provides a model that uses categorical policy uncertainty approach to explain stock price changes. The parametric estimates provide insightful information in advising investors for making portfolio decision.

The estimated coefficients of changes in monetary policy uncertainty, fiscal policy uncertainty and trade policy uncertainty are informative in assisting policymakers to formulate effective financial policies.

This study extends the existing risk premium model in several directions. First, it separates the financial risk factors from the EPU innovations; second, instead of using EPU, this study investigates the effects from monetary policy, fiscal policy and trade policy uncertainties; third, in additional to an examination of the effects of US categorical policy uncertainties on its own markets, this study also investigates the spillover effects to global major markets; fourth, besides the aggregate stock markets, this study estimates the effects of US policy uncertainty innovations on the sectoral stock returns.

This paper aims to explore surprising facets of consumer delight behavior. The study is the empirical juncture of three studies based on consumer survey on the Indian television market. Study 1 traces the existence of greenies in India among brownies prevailing around the globe by using the surprise-delight model. Study 2 is a pre-intervention research design confirming greenies preferences to television attributes such as screen technology, annual energy cost saving, screen resolution, screen size and free gifts. Study 3 signifies a price intervention design by allowing customers to include their preference by replacing the annual energy cost saving with price.

This paper is a harvest of studies based on discriminant analysis for identifying green and brown customers and a two-level conjoint analysis for identifying attributes contributing to green behavior.

The empirical generalization of a study comes out with unique findings of the greenies and brownies and their preference and attitude toward green attribution and substitution. A “preferential green shift” appeared as a vital output owing to knowledge–attitude–practice from these consecutive studies. This gap exists because of the price factor. The authors suggest the measures for improvement in product offering by targeting and positioning green products from the findings and the preferential green shift.

Future research may focus on other segments of products such as automobiles, i.e. cars. Despite the availability of the non-probabilistic sampling technique, the probabilistic sampling technique can be used. Finally, a larger sample size could have given a better generalization of results.

The gap in knowledge–attitude–practice was evident. This gap was caused by the presence of “price” concern. The study revealed that heavy consumer durable buyers are aware of the benefit of green, but the reality of price cannot be ignored and finally make a purchasing decision on the basis of price criteria. Hence price is recommended as another criterion to be considered in the technology acceptance models.