School of Business

The effect of product touch information and sale proneness on consumers' responses to price discounts

Document Type

Article

Abstract

Since price discounts are costly and can negatively affect consumers' perceptions of quality, it is crucial to identify the factors that make them effective in stimulating purchase behavior. Drawing on cue utilization theory, we examine price discount effectiveness in affecting consumers' reliance on the sale cue based on the provided product touch information as an intrinsic cue and individual consumer differences in sale proneness. Two experimental studies indicate that price discount information, product touch information, and sale proneness interact to determine consumers' responses. Perceived quality is the underlying mechanism behind the observed effects. For nonsale-prone consumers, product touch information favorably influences responses to large price discounts by addressing product quality concerns and enhancing purchase confidence, but has no effect for regularly priced or low discounted products. For sale-prone consumers, product touch information is not effective in increasing their responses regardless of the discount size. A qualitative study provides support for these results and highlights the role of perceived quality and purchase confidence. The research contributes to behavioral pricing, cue utilization theory, and sensory marketing and suggests that marketing managers should provide consumers with product touch information when implementing high discounts for products for which prepurchase touch is important.

Publication Title

Psychology and Marketing

Publication Date

11-9-2022

Volume

40

Issue

1

First Page

146

Last Page

168

ISSN

0742-6046

DOI

10.1002/mar.21755

Keywords

extrinsic and intrinsic product cues, perceived quality, price discount, product touch, purchase behavior, sale proneness

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