How price discount affect sales?
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Price discounts have a significant impact on sales, as evidenced by various studies. Research indicates that both partial promotions and price discounts positively and significantly affect sales, with a notable coefficient of determination of 90.4% . The effectiveness of price discounts in stimulating purchase behavior depends on factors like product touch information, sale proneness, and perceived quality. For instance, product touch information can enhance purchase confidence for nonsale-prone consumers, especially with large price discounts, by addressing quality concerns . Additionally, the presence of a lagged effect of discounting on sales has been observed, with certain categories like sports and energy drinks showing sustained higher sales levels even after the discount period ends . These findings highlight the intricate relationship between price discounts and sales outcomes.
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| Papers (5) | Insight |
|---|---|
| Price discounts increase sales of Sugar Sweetened Beverages (SSB) during the discount period. Some SSB, like sports and energy drinks, show sustained higher sales even after the discount period ends. | |
| Price discounts positively influence impulsive buying, which in turn affects purchasing decisions. This indirect relationship showcases how price discounts can impact sales through impulsive buying behavior. | |
| Price discounts have a positive and significant effect on sales, with a regression coefficient of 0.219, indicating that a one-unit increase in discounts leads to a 0.219 unit increase in sales. | |
3 Citations | Price discounts impact sales by interacting with product touch information and consumer sale proneness. Discounts coupled with touch information positively influence non-sale-prone consumers' purchase decisions based on perceived quality. |
| Price discounts increase sales of Sugar Sweetened Beverages (SSB) during the discount period. Lagged effects were observed in sports and energy drinks, with excess sales even after discounts ended. |
Related Questions
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Do price discounts help attract customers in the philippines?5 answersPrice discounts have been found to attract customers in various industries and countries. In the foodservice industry in South Korea, discount methods such as affiliated cards, point cards, discount coupons, social commerce, and event discounts have been effective in increasing customer satisfaction and loyalty. Similarly, a study on the marketing of experience goods found that gambled price discounts (GPDs) were more attractive than regular price discounts (RPDs) for attracting customers. Additionally, a study on tourism distribution agents found that price discounts did not directly erode consumer loyalty, and that offering high-quality service was key to obtaining loyal customers. While there is no specific mention of the Philippines in the abstracts provided, the findings from these studies suggest that price discounts can be effective in attracting customers in various contexts.
Do price discounts help attract customers, increase sales, and create a sense of urgency to purchase?4 answersPrice discounts have been found to be effective in attracting customers, increasing sales, and creating a sense of urgency to purchase. Studies have shown that price discounts positively affect consumers' purchase behavior, especially when combined with other factors such as product touch information and individual consumer differences in sale proneness. Promotions and price discounts have been found to have a significant positive impact on sales. Price discount displays can mitigate negative customer reactions to dynamic pricing and enhance customers' perceptions of pricing transparency, price fairness, and value, leading to increased purchase intention. Price discounts have been found to have a significant effect on impulsive buying behavior, especially when perceived quality serves as a mediator. Price discounts and electronic word of mouth have been found to have a simultaneous positive and significant effect on impulse buying.
What are the effects of price discounts and promotions on consumers' purchase decision?4 answersPrice discounts and promotions have a positive and significant effect on consumers' purchase decisions. Promotions and price discounts increase sales and influence consumer choices. Good product quality and proven promotional power strengthen the customer's decision to buy. Deep discounting erodes brand value and reduces profits for manufacturers, leading to resistance against heavy discounting. Price discounts can act as a mediator variable, strengthening the effect of promotional taglines on e-purchase decisions. Overall, price discounts and promotions play a crucial role in influencing consumers' purchase decisions, increasing sales, and strengthening the customer's decision to buy.
What are the influence of discounts on consumers?4 answersDiscounts have a significant influence on consumers' purchasing decisions. Multiple discount schemes, such as quantity discounts and coupon discounts, are found to be the most effective strategies for boosting sales. The effectiveness of discounts is influenced by factors such as product touch information, sale proneness, and perceived quality. For nonsale-prone consumers, product touch information positively influences responses to large price discounts by addressing quality concerns and enhancing purchase confidence. Promotions and price discounts, both individually and together, have a positive and significant effect on sales. Discounts, product completeness, and location all have a simultaneous positive influence on consumer purchase decisions. Price discount affect, which is the feeling aroused by price discounts, plays a mediating role in the relationship between price discounts and consumers' perceptions, such as perceived savings, quality, and value. Overall, discounts are an effective tool for stimulating purchase behavior and influencing consumers' perceptions of products.