Percent Off vs. Dollar Discounts: The Psychology of Promotions

Q: Does promotion depth moderate the relationship between discount frames and consumer responses?

Relevant meta-analyses can further examine whether promotion depth moderates the relationship between discount frames and consumer responses. In addition, this meta-analysis examined only the two-way interaction between amount-off discounts versus percentage-off discounts and the moderators.

Q: Do amount-off discounts affect consumer responses?

The positive effects of amount-off discounts on consumer responses are stronger through attitudes and behavioral intentions for material than for experiential products. Coupon promotions and discount promotions are two important price promotion modes, and consumer responses differ for these two types of promotions (Folkes & Wheat, 1995 ).

It doesn’t matter how great an offer is if customers don’t use it. In order to entice consumers to use coupons or discounts, marketers need to create promotions that will appeal to the consumer and persuade them to buy. There are a number of marketing techniques that will make offers more persuasive … See more

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FAQs about Percent Off vs. Dollar Discounts: The Psychology of Promotions Coupon?

Is a percentage discount better than a dollar off promotion?

For those under $100, things reverse and a percentage discount will likely be more effective. For example, comparing the performance of a dollar off vs. percent off promotion on a $20 product may have a different result than similar promotions on the $350 couch described above. ...

How do you capitalize on the psychology of discounts?

The best way to capitalize on the psychology of discounts is to offer different promotions to each customer depending on their specific intent. With this route, you can send discounts to customers on the fence about making a purchase and not to everyone. ...

How do discounts affect customer psychology?

Then how consumers are affected by discounts. Discounts have an impact on how customers engage with your products and business, beyond merely appealing to the notion of saving money. Here are some of how discounts impact your customer’s psychology. ...

What is a dollar off discount?

For lower-priced products (less than $100), the absolute number associated with the dollar amount off discount will be less than the absolute number associated with the equivalent percentage off discount (e.g., 10 from $10 off $50 < 20 from 20% off $50). ...

Does promotion depth moderate the relationship between discount frames and consumer responses?

Relevant meta-analyses can further examine whether promotion depth moderates the relationship between discount frames and consumer responses. In addition, this meta-analysis examined only the two-way interaction between amount-off discounts versus percentage-off discounts and the moderators. ...

Do amount-off discounts affect consumer responses?

The positive effects of amount-off discounts on consumer responses are stronger through attitudes and behavioral intentions for material than for experiential products. Coupon promotions and discount promotions are two important price promotion modes, and consumer responses differ for these two types of promotions (Folkes & Wheat, 1995 ). ...