When and how should retailers rationalize the size and duration of price discounts?

摘要

Context: Price discounts are common retail promotional tools that are defined by their size and duration. Consumers possess a general schema in which they believe that retailers are motivated to associate larger price discounts with shorter durations and smaller price discounts with longer durations. However, factors influencing promotion management frequently lead retailers to present discount size/duration combinations that are incongruent with this schema. What are the consequences for retailers of presenting consumers with such discounts, and what can retailers do to overcome detrimental effects of incongruent discount terms?