Restrictively Framed Promotions Hurt Retailers: The Role of Promotion Induced Reactance

Siddharth Bhatt, Srinivasan Swaminathan, Rajneesh Suri

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Retailers offer many in-store promotions to increase sales. In-store price promotions, and especially, multiunit discounts, are common across retail settings. The purpose of this research is to propose and test the impact of a prevalent, but unexamined, multiunit promotional frame (discount with “must buy X”) on consumers’ perceptions of value and purchase intention. We argue that a promotional frame that explicitly mandates the minimum purchase quantity that consumers need to buy to avail of the promotion is perceived unfavorably by consumers. As an alternative to this restrictive promotional frame, we propose the economically equivalent but differently framed promotion (discount with “bundle of X”). Our findings show that, compared to the restrictively framed promotion (“must buy”), a promotion framed as a “bundle” leads to lower promotion-induced reactance, and thereby, higher perceived value, and higher purchase intention. We discuss the theoretical and managerial implications of these findings.

Original languageEnglish (US)
Pages (from-to)77-109
Number of pages33
JournalJournal of Promotion Management
Volume30
Issue number1
DOIs
StatePublished - 2024

All Science Journal Classification (ASJC) codes

  • Marketing

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