The Asymmetric Effect of Discount Retraction on Subsequent Choice

摘要

This article examines the subsequent impact of a temporary price discount on brand preference after the promotion is retracted. Theorizing that price salience has an impact on price sensitivity, we propose that the effects of retracting a discount depend on the promoted brand's regular price-quality positioning. In a first experiment in which we track consumer choices across a sequence of choice occasions, we show that retracting a discount posted by a higher quality, higher price brand is detrimental to that brand. In contrast, a discount posted by a lower quality, lower price brand is capable of enduringly diverting consumers away from high-end brands. A second experiment relies on process measures to provide evidence for the underlying price salience mechanism. A third experiment tests our hypotheses with real incentives and offers additional support for our price salience theory by testing its most peculiar behavioral implication.