The Effect of Promotion Expectation on Consumer’s Price Evaluation and Purchase Intention during Non-Promotion Period

• Main Authors: En-Chi Lin, 林恩琪
• Other Authors: Dung-chun Tsai
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/69350254211387847551

碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 94 === Have you expected for a discount when there is no discount promotion? Previous literatures mainly employed expected price as consumer’s promotion expectation, and investigate its effect on purchasing behavior. Lately, two terms of promotion expectation were proposed: expected future discount depth (EFD) and expected future discount (EFD) timing. There are few literatures investigating these two new dimensions. In addition, previous studies were mainly investigated how discount influenced consumer’s behavior, thus the experiments were conducted during promotion period. However, Gönül & Scrinivasan (1996) found that consumers’ expectation of probability of coupon availability in the next period is higher when there is no coupon available in the current period. It is implied that consumer’s promotion expectation will be stronger when there is no discount available. Thus our study will be conducted during non-promotion period. In this study, we will investigate how retailer’s discount pattern influence consumer’s purchasing behavior. Previous model showed discount depth and frequency are two important factors which influence consumer’s expected price. Thus the objective of this study is to investigate during non-promotion period how retailer’s past discount depth and frequency influence their expected future discount depth and expected future discount timing. Furthermore, we will also investigate how consumer’s promotion expectation effects their price evaluation of current price and purchase intention during non-promotion period. In this study, experiment was employed to collect data. Subjects are undergraduate and graduate students, and there were 276 participants in the experiments. Product in the experiment is shampoo which is used both by male and female. From the experiment, we conclude that consumers form promotion expectations according to store’s past discount pattern. When retailer adopts high discount depth pattern, consumers would expect to enjoy high discount depth and low price next time. In addition, consumer’s price evaluation is affected by their promotion expectation. However, EFD Depth, more than EFD Timing, influence price evaluation. We also find that consumer won’t evaluate current price by their expected future discount timing. Thus discount depth plays the main role in consumer’s price evaluation.