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Deal‐prone consumers' response to promotion: The effects of relative and absolute promotion value
Author(s) -
DelVecchio Devon
Publication year - 2005
Publication title -
psychology and marketing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.035
H-Index - 116
eISSN - 1520-6793
pISSN - 0742-6046
DOI - 10.1002/mar.20064
Subject(s) - promotion (chess) , absolute (philosophy) , liberian dollar , value (mathematics) , marketing , market segmentation , heuristic , limit (mathematics) , relative value , business , economics , microeconomics , advertising , computer science , mathematics , statistics , artificial intelligence , mathematical analysis , philosophy , epistemology , finance , politics , political science , law
Increased use of promotions that target different market segments makes the study of consumer characteristics associated with the response to promotions more noteworthy. This article assesses the effect of a common segmentation criterion, consumer deal proneness, on consumers' responses to promotions of more and less relative and absolute value. The results of a pair of experiments indicate that deal‐prone consumers are sensitive to the value of a promotion relative to other available promotions only in a condition of high absolute dollar savings. The findings help integrate conflicting views of deal proneness into a framework in which deal proneness serves as a heuristic to limit or heighten processing of promotion‐related information depending on the promotion environment. © 2005 Wiley Periodicals, Inc.