ISSN: 2222-6990
Open access
Sales induced through price discounts relaying on discount depth. and so, firms and marketers use various tactics in their attempts to increase consumers’ perceptions of discount depth, however, double discounts are a new format to increase discount depth compared to a financially equivalent single discount. this study showed that double discounts e.g., (40 % followed by 25%) increase consumers’ response and discount depth perceptions compared to a financially equivalent single discount (55%) depending on discount depth and heuristic approaches. this study reveals the effects on consumers ’response with findings from this study, in addition to contributing to research on price promotions, behavioral pricing, and numeric processing, Finally, the paper concludes with a present implications, limitations, and directions for future research.
Ammar, N., & Alleil, J. (2019). When 25% Off Plus 20% off is Equal to 40% Off: Multiple Discount Promotions are Preferred to Single-Discount Promotions. International Journal of Academic research in business and sciences, 9(6).
Alba, J. W., Carl, F. M., Terence, A. S., & Joel, E. U. (1999). The Effect of Discount Frequency and Depth on Consumer Price Judgments. Journal of Consumer Research,26 (2) 99–114.
Biswas, A., Bhowmick, S., Guha, A., & Grewal, D. (2013). Consumer Evaluations of sale prices: Role of the subtraction principle. Journal of Marketing, 77(4), 49–66. https://doi.org/10.1509/jm.12.0052
Bettman, J. R., Johnson, E. J., & Payne, J. W. (1991). Consumer Decision Making. In Handbook of Consumer Behavior, T. Robertson AND H. Kassarjian, Eds. Prentice Hall, 50–84.
Chen, H. A., Marmorstein, H., Tsiros, M., & Rao, A. R. (2012). When more is Less: The Impact of Base Value Neglect on Consumer Preferences for Bonus Packs over Price Discounts. Journal of Marketing, 76(4), 64–77. https://doi.org/10.1509/jm.10.044
Chaiken, S. (1980). Heuristic versus systematic information processing and the use of source versus message cues in persuasion. Journal of Personality and Social Psychology, 39(5), 752–766. https://doi.org/10.1037/0022-3514.39.5.752
Chen, H. A., & Rao, A. R. (2007). When Two Plus Two Is Not Equal to Four: Errors in Processing Multiple Percentage Changes. Journal of Consumer Research, 34(3), 327–340. https://doi.org/10.1086/518531
Davis, D. F., & Bagchi, R. (2018). How Evaluations of Multiple Percentage Price Changes Are Influenced by Presentation Mode and Percentage Ordering: The Role of Anchoring and Surprise. Journal of Marketing Research, 55(5), 655–666.
https://doi.org/10.1177/0022243718808554
Dib, H., & Alleil, J. (2022). How Evaluations of Double Discount Are Influenced by Discount Level: The Role of Anchoring and Systematic Computational Error. International Journal of Academic Research in Business and Social Sciences, 12(5), 614 – 622
Schley, D. R. (2013). When 15% Off Plus 10% Off is More Than 30% Off: Multiple-Discount Promotions are Preferred to Larger Single-Discount Promotions. NA - Advances in Consumer Research, 41, 733-734.
Denes-Raj, V., & Seymour, E. (1994). Conflict between Intuitive and Rational Processing: When People Behave Against their Better Judgment. Journal of Personality and Social Psychology,66(5), 819–829.
Grewal, D., Monroe, K. B., & Krishnan, R. (1998). The Effects of Price-Comparison Advertising on Buyers’ Perceptions of Acquisition Value, Transaction Value, and Behavioral Intentions. Journal of Marketing, 62(2), 46. https://doi.org/10.2307/1252160
Grewal, D., Marmorstein, H., & Sharma, A. (1996). Communicating Price Information through Semantic Cues: The Moderating Effects of Situation and Discount Size. Journal of Consumer Research, 23(2), 148. https://doi.org/10.1086/209473
González, E. M., Eduardo, E., Roggeveen, A. L., & Dhruv, G. (2016). Amount off versus Percentage off—When Does It Matter? Journal of Business Research, 69(3), 1022–1027.
Kim, H. M., & Kramer, T. (2006). “Pay 80%” versus “get 20% off”: The effect of novel discount presentation on consumers’ deal perceptions. Marketing Letters, 17(4), 311–321. https://doi.org/10.1007/s11002-006-9309-7
Lichtenstein, D. R., Ridgway, N. M., & Netemeyer, R. G. (1993). Price Perceptions and Consumer Shopping Behavior: A Field Study. Journal of Marketing Research, 30(2), 234. https://doi.org/10.2307/3172830
Lee, J. E., & Chen-Yu, J. H. (2018). Effects of price discount on consumers’ perceptions of savings, quality, and value for apparel products: mediating effect of price discount affect. Fashion and Textiles, Springer, Volume (5).
Pacini, R., Epstein, S. (1999). The Relation of Rational and Experiential Information Processing Styles to Personality, Basic Beliefs, and the Ratio-bias Phenomenon. Journal of Personality and Social Psychology,76, 972–987.
Pelham, B. W., Sumarta, T. T., Myaskovsky, L. (1994). The easy path from many to much: The numerosity heuristic. Cognitive Psychology, Vol. 26 Issue 2, p103, 31p.
Reyna, V. F., Brainerd, C. J. (2008). Numeracy, Ratio Bias, and Denominator Neglect in Judgments of Risk and Probability. Learning and Individual Differences, 18 (1), 89-107.
Suri, R., & Monroe, K. B. (2003). The Effects of Time Constraints on Consumers’ Judgments of Prices and Products. Journal of Consumer Research, 30(1), 92–104.
https://doi.org/10.1086/374696
Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science, 185(4157), 1124–1131.
https://doi.org/10.1126/science.185.4157.1124
In-Text Citation: (Dib & Alleil, 2022)
To Cite this Article: Dib, H., & Alleil, J. (2022). Single Discount Versus Double Discount: Errors in Processing Double Discount Percentage Changes. International Journal of Academic Research in Business and Social Sciences. 12(6), 599 – 610.
Copyright: © 2022 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode