Do Promotions Make Consumers More Generous? The Impact of Price Promotions on Consumers’ Donation Behavior

Designing promotions: Consumers' surprise and perception of discounts

This paper proposes a behavioral pricing model that enhances traditional pricing algorithms by incorporating concepts from mathematical psychology and information theory on how consumers perceive discounts. We propose a framework that systematically incorporates the effect of quoted discounts and historical promotions on consumers’ valuations and helps marketers determine the optimal discount s...

Do Pleasant Emotional Ads Make Consumers Like Your Brand More?

The Long-Term Impact of Promotions on Consumer Stockpiling Behavior

Although brands have increased their promotional spending substantially in many categories over the past decade, panel-based research into consumer stockpiling behavior typically has assumed that consumers' decisions regarding whether and how much to purchase have remained invariant to this increase. The authors develop a varying parameter model of purchase incidence and purchase quantity to as...

Tracing the Impact of Price Promotions across Categories

Consumer perceptions of ambiguous price promotions: scratch and save promotions versus tensile price claims

Purpose – 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 cla...