customer perceptions towards discounted products
Study of consumer perceptions towards discount offers
Abstract
This research study examined consumers ' perceptions of products they purchased under discount offers, and their effects on repurchase intentions of the same products after the end of the offers. The research began with an exploratory study of marketers ' observations of the effectiveness of consumer discount programs, and consumers ' opinions regarding the products. The findings of this exploratory research were used to develop hypotheses and survey instrument. A consumer survey was carried out to empirically test the effectiveness of discount offers on three perceptual dimensions viz. quality, price and fun; and the impact of these perceptions on repurchase intentions. The research revealed that consumers perceived that they receive quality and price benefits but not hedonic benefits from the products purchased under product and prize based discount offers. The discount offers neither encouraged repurchase intentions nor substantial short term brand switching. Offering a gift attached to the product appeared to reward loyal consumers only. These findings have implications for marketers ' decisions to offer consumer discounts.
Key Words
Consumers ' perception, customers ' loyalty, non-price discount offers, repurchase intention
1. Introduction
Growing competition has forced marketing practitioners to constantly evolve and reinvent their practices around the world. One of the popular marketing tactics has been the increasing use of different types of raffles and free schemes aimed at brand building. These practices are consumer discounts which consist of a collection of incentive tools, mostly short term, designed to stimulate the purchase of particular products or services by consumers. This study investigated whether the discount programs really contribute to brand building, purchase and repurchase intentions in India.
Marketers have different views on the long term effectiveness of
Abstract
This research study examined consumers ' perceptions of products they purchased under discount offers, and their effects on repurchase intentions of the same products after the end of the offers. The research began with an exploratory study of marketers ' observations of the effectiveness of consumer discount programs, and consumers ' opinions regarding the products. The findings of this exploratory research were used to develop hypotheses and survey instrument. A consumer survey was carried out to empirically test the effectiveness of discount offers on three perceptual dimensions viz. quality, price and fun; and the impact of these perceptions on repurchase intentions. The research revealed that consumers perceived that they receive quality and price benefits but not hedonic benefits from the products purchased under product and prize based discount offers. The discount offers neither encouraged repurchase intentions nor substantial short term brand switching. Offering a gift attached to the product appeared to reward loyal consumers only. These findings have implications for marketers ' decisions to offer consumer discounts.
Key Words
Consumers ' perception, customers ' loyalty, non-price discount offers, repurchase intention
1. Introduction
Growing competition has forced marketing practitioners to constantly evolve and reinvent their practices around the world. One of the popular marketing tactics has been the increasing use of different types of raffles and free schemes aimed at brand building. These practices are consumer discounts which consist of a collection of incentive tools, mostly short term, designed to stimulate the purchase of particular products or services by consumers. This study investigated whether the discount programs really contribute to brand building, purchase and repurchase intentions in India.
Marketers have different views on the long term effectiveness of