The Weber-Fechner Law applied to pricing (Monroe 1971b) includes the proposition that the relative, rather than absolute, discount size influences consumers' reaction to price incentives is largely influenced by relative, rather than absolute, discount size. For example, shoppers value a ;Furthermore, respondents indicated a willingness to spend more time obtaining online discounts. Small relative and absolute online discounts were as efficacious as larger traditional discounts. In contrast to Kahneman and Tversky's (1981) seminal findings, respondents demonstrate fewer preference reversals and are more likely to accept relatively small price discounts online. Qualitative data reveal that consumers used minimal account framing, comparing discounts to value of their time online. Their ability to multi-task while shopping online contributed to their willingness to spend more time pursuing smaller price promotions. The managerial implications of findings suggest that marketers can gain the same level of behavioral response using smaller price incentives online compared to larger promotions in a traditional shopping situation.
展开▼
