Featured Research

from universities, journals, and other organizations

Why do discounts backfire when you make consumers wait?

Date:
October 15, 2013
Source:
Journal of Consumer Research, Inc.
Summary:
Consumers like to reap the benefits of discounts immediately (not later). Consumers enjoy discounted products much less if they have to wait for them.

Consumers like to reap the benefits of discounts immediately (not later), according to a new study in the Journal of Consumer Research. Consumers enjoy discounted products much less if they have to wait for them.

"Price promotions are common in the marketplace. For consumers, these promotions translate into real economic savings, guide buying decisions, encourage trial of new products, and make consumers feel smart and good about themselves," write authors Leonard Lee (Columbia University) and Claire I. Tsai (University of Toronto). But sometimes discounts backfire, especially if consumers need to wait to enjoy the product.

The authors examined how discounts influence pleasure-related consumption experiences. They found that discounts generally make consumers happier. But they also found that paying a lower price for a product reduces the need to justify the expenditure, which causes people to pay less attention during consumption, dampening enjoyment. The relative strength of these opposing forces depends on when the product is consumed after payment -- right away or after a delay.

The authors conducted four experiments involving real spending and consumption, using a variety of products (chocolates, music, orange juice) and different durations of consumption delay. In one of the experiments, participants purchased one of two types of chocolate truffles at either the regular price of $1 or a discount of 50 cents. Half of the participants consumed the chocolate right away, and the other half waited for a week before consuming the chocolate. Consumers enjoyed the chocolate less when they had to wait a week.

"Our research provides new insight for better understanding the mixed effects of discounts on sales and loyalty, offering an explanation for why discounts may increase sales in the short run, but could have negative long-term effects on customer satisfaction and brand loyalty," the authors conclude.


Story Source:

The above story is based on materials provided by Journal of Consumer Research, Inc.. Note: Materials may be edited for content and length.


Journal Reference:

  1. Leonard Lee and Claire I. Tsai. How Price Promotions Influence Postpurchase Consumption Experience over Time. Journal of Consumer Research, February 2014

Cite This Page:

Journal of Consumer Research, Inc.. "Why do discounts backfire when you make consumers wait?." ScienceDaily. ScienceDaily, 15 October 2013. <www.sciencedaily.com/releases/2013/10/131015113454.htm>.
Journal of Consumer Research, Inc.. (2013, October 15). Why do discounts backfire when you make consumers wait?. ScienceDaily. Retrieved September 16, 2014 from www.sciencedaily.com/releases/2013/10/131015113454.htm
Journal of Consumer Research, Inc.. "Why do discounts backfire when you make consumers wait?." ScienceDaily. www.sciencedaily.com/releases/2013/10/131015113454.htm (accessed September 16, 2014).

Share This



More Science & Society News

Tuesday, September 16, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Some Tobacco Farmers Thrive Amid Challenges

Some Tobacco Farmers Thrive Amid Challenges

AP (Sep. 16, 2014) The South's tobacco country is surviving, and even thriving in some cases, as demand overseas keeps growers in the fields of one of America's oldest cash crops. (Sept. 16) Video provided by AP
Powered by NewsLook.com
Space Race Pits Bezos Vs Musk

Space Race Pits Bezos Vs Musk

Reuters - Business Video Online (Sep. 16, 2014) Amazon CEO Jeff Bezos' startup will team up with Boeing and Lockheed to develop rocket engines as Elon Musk races to have his rockets certified. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com
President To Send 3,000 Military Personnel To Fight Ebola

President To Send 3,000 Military Personnel To Fight Ebola

Newsy (Sep. 16, 2014) President Obama is expected to send 3,000 troops to West Africa as part of the effort to contain Ebola's spread. Video provided by Newsy
Powered by NewsLook.com
EU Ministers and Experts Meet to Discuss Ebola Reponse

EU Ministers and Experts Meet to Discuss Ebola Reponse

AFP (Sep. 15, 2014) The European Commission met on Monday to coordinate aid that the EU can offer to African countries affected by the Ebola outbreak. Duration: 00:58 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

    Environment News

      Technology News



      Save/Print:
      Share:

      Free Subscriptions


      Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

      Get Social & Mobile


      Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

      Have Feedback?


      Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
      Mobile: iPhone Android Web
      Follow: Facebook Twitter Google+
      Subscribe: RSS Feeds Email Newsletters
      Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins