• The Research Journal of the Costume Culture
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• v.27 no.5
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• pp.524-537
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• 2019

The aim of this study was to explore the effect of combinations of diverse methods notifying price discounts (i.e., reference price, odd price, and discount rate signs) and the relationships among product attribute perception, discount perception, attitude toward product, and purchase intention of product. Experiments were conducted where 12 stimuli of different price discount information notifications regarding T-shirt advertisements were presented to 352 informants. The results showed that notification of each type of discount information increased discount perception, whereas no effect due to the size of letters used in the discount rate notification was found. As more price discount information notifications were used, discount perception tended to become stronger. The results of ANOVA analysis show that both product attribute perception and discount perception affected attitude toward the product. In addition, product purchase intention was determined by attitude toward the product as well as price discount perception. Based on these findings, marketers may want to use a combination of methods of price discount notifications in advertisements to deliver price discount information clearly to consumers. Confirmation of discount information using multiple cues would help consumers to notice and perceive price discount information provided by retailers more effectively. Discount information is crucial for increasing both purchase intention and favorable attitude, therefore, diverse strategies regarding discount information presentations should be developed, tested and applied in the real world of retailing.

• Journal of the Korean Society of Clothing and Textiles
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• v.23 no.4
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• pp.529-540
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• 1999

The purpose of this study is examine how price attitude and risk perception affect6 consumer's attitude to clothing discount stores. As for the methods of the research 313 female consumers who just finished shopping at discount stores were interviewed and questioned. The result is as the following. 1. The factors such as discount price inclination effective value inclination price-quality association and price-social grade association in the price attitude as well as social psychological risk and the risk of losing opportunity in the risk perception affected consumer's attitude to clothing discount store. 2. The domestic national brand discount store acquired the highest scores in all factors but discount inclination factor and low price inclination factor. No difference was seen between stores in terms of the risk perception. 3. The determining factors for repurchase intention were found to be store satisfaction and the attitude to clothing discount store. 4. The convenience of transportation the availability of exchange or repair the payment option the quality of the product and the attributes of the store e, g, good quality with relatively low price affected the store satisfaction. 5. Domestic national brand discount store showed higher score in 'good quality with relatively low price' than domestic casual brand discount store did. And difference between groups was found in repurchase intention, Conclusively most consumers using clothing discount stores are effective value-oriented.

• Journal of the Korean Society of Clothing and Textiles
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• v.26 no.9
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• pp.1342-1353
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• 2002

The purpose of this study was to provide the basic information to be helpful in establishing more rational prices discount strategy in prices discount advertising. The experiment design for study was a $3{\times}2{\times}3$ between subject factorial design in which the factors were discount presentation types(discount price presentation/discount rate presentation/discount price and discount rate presentation), existence of normal price presentation(presentation/ non-presentation) and semantic cues(regular sales/markdown on the previous season's product/storehouse opening sales). Thirty subjects were randomized in one of 18 experimental conditions. The subjects of this study were 540 female university students in Kwangju, Korea. The results were as follows; 1. Significant interaction effects between discount presentation types and the semantic cues were found in perceived transaction value(p<.01), perceived acquisition value(p<.05), and purchase intention(p<.05)- It means that discount presentation types in prices discount advertising need to present differently according to price discount types. 2. Significant interaction effects between existence of normal price and the semantic cues were not found. It means that normal price need to present in prices discount advertising regardless of price discount types.

• Journal of Distribution Science
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• v.20 no.1
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• pp.87-98
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• 2022

Purpose: This research investigates whether the existence of preannouncing price discount before purchase has an effect on after regret about purchasing and price fairness perception. Moreover, this paper examines whether the preannouncing effects on regret (or price fairness perception) are moderated by motive inference type (or brand trust). Research design, data and methodology: This experimental design consisted of total 8 between-subjects full factorial, which is completed by 2 (preannouncing price discount before purchase) × 2 (motive inference type) × 2 (consumer's brand trust level). Results: First, regret (or price fairness) differs depending on the presence/absence of preannouncing price discount before purchase and price discount motive inference type. Second, interaction effect of preannouncing price discount presence/absence before purchase and price discount motive inference type on regret (or price fairness) after purchase differs depending on motive inference type (or brand trust). Conclusions: Preannouncing external cue could decrease the possibility of consumers to regret and prevent consumers perceiving price change as unfair. Thus, corporations should sufficiently explain to consumers about preannouncing and specific reason of price fall in order to decrease regret caused by price fall and to increase price fairness perception from preannouncing effect.

• Asia Marketing Journal
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• v.14 no.1
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• pp.53-81
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• 2012

Constructing attractive bundle offers depends on more than an understanding of the distribution of consumer preferences. Consumers are also sensitive to the framing of price information in a bundle offer. In classical economic theory, consumers' utility should not change as long as the total price paid stays same. However, even when total prices are identical, consumers' preferences toward a bundle product could be different depending on the format of price presentation and the locus of price discount. A weighted additive model predicts that the impact of a price discount on the overall evaluation of the bundle will be greater when the discount is assigned to the more important product in the bundle(Yadav 1995). Meanwhile, a reference dependent model asserts that it is better to assign a price discount to a tie-in component that has a negative valuation at its current offer price than to a focal product that has a positive valuation at its current offer price(Janiszewski and Cunha 2004). This paper has expanded previous research regarding price discount presentation format, investigating the reasons for mixed results of prior research and presenting new mechanisms for price discount framing effect. Prior research has hypothesized that bundling is used to sell a tie-in component with an offer price above the consumer's reference price plus a focal product of the same offer price with reference price(e.g., Janiszewski and Cunha 2004). However, this study suggests that bundling strategy can be used for increasing product's attractiveness through the synergy between components even when offer prices of bundle components are the same with reference prices. In this context, this study employed various realistic bundle sets with same price between offer price and reference price in the experiment. Hamilton and Srivastava(2008) demonstrated that when evaluating different partitions of the same total price, consumers prefer partitions in which the price of the high-benefit component is higher. This study determined that their mechanism can be applied to price discount presentation formats. This study hypothesized that price discount framing effect depends not on the negative perception of tie-in component with offer price above reference price but rather on the consumers' perceived consumption benefit in bundle product. This research also hypothesized that preference for low-benefit discount mechanism is that perceived consumption benefit reduces price sensitivity. Furthermore, this study investigated how consumers' concern for quality in a price discount--a factor not considered in previous research--influences price discount framing. Yadav(1995)'s experiment used only one magazine bundle of relatively low quality uncertainty and could not show the influence of perceived uncertainty of quality. This study assumed that as perceived uncertainty of quality increases, the price sensitivity mechanism for assigning the discount to low-benefit will increase. Further, this research investigated the moderating effect of uncertainty of quality in price discount framing. The results of the experiment showed that when evaluating different partitions of the same total price and the same amount of discounts, the partition that discounts in the price of low benefit component is preferred to the partition that decreases the price of high benefit component. This implies that price discount framing effect depends on the perceived consumption benefit. The results also demonstrated that consumers are more price sensitive to low benefit component and less price sensitive to high benefit component. Furthermore, the results showed that the influence of price discount presentation format on the evaluation of bundle product varies with the perceived uncertainty of quality in high consumption benefit. As perceived uncertainty of quality gradually increases, the preference for discounts in the price of low consumption benefit decreases. Besides, the results demonstrate that as perceived uncertainty of quality gradually increases, the effect of price sensitivity in consumption benefit also increases. This paper integrated prior research by using a new mechanism of perceived consumption benefit and moderating effect of perceived quality uncertainty, thus providing a clearer explanation for price discount framing effect.

• The Journal of Information Systems
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• v.27 no.2
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• pp.157-173
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• 2018

Purpose Product characteristics and price value in website have strongly effects on customer satisfaction. Especially, in the online shopping site, the scarcity limits the customer's opportunity to purchase the product. Thus scarcity has been proposed as a important factor that makes the customer highly aware of the merchantability of the product. The scarcity in the web store is used as an important variable to make purchasing decisions of users easier by psychological pressure. In the case of scarce products with price discounts in online commerce, advertising formats that highlight scarcity value in the web commerce market are very effective in enhancing purchase intentions of consumers. Unlike offline stores, the importance of scarcity becomes more important when reflecting the characteristics of online commerce. Therefore, this study intends to confirm the influence of the degree of price discounts and scarcity information presented by Web sites on consumer purchase behavior in Web purchase behavior. Design/methodology/approach This study conducted a web-based experimental study on price sensitivity and price discount. Therefore, we created experimental web-sites that offer two stimuli according to the discount rate. The 200 respondents were randomly assigned. The stimuli were fictitious based on tourism products. The first stimulus presented the price discount(15% discount) with basic explanation about the package of the tourist package. The stimuli assigned to the second group were used for groups with high price discount intensity(65% discount). In this way, the two stimuli clearly distinguished the level of price discount intensity. This paper conducted t-test analysis and structural equation to analyze the experiemental results after confirming the reliability and validity. Findings The results of this study are as follows. The difference in price discount intensity (15% vs 65%) with scarcity showed the mean difference among all the variables. Therefore, this study concluded that there is a significant difference between the price discount of 15% and 65% for the acquisition value and transaction value of users. In particular, consumers' purchase intention is greater and product recommendation intensity is stronger when the price discount is 65%. As a result, the high degree of the price discount intensity with scarcity exerts a greater influence on consumers' purchase intentions. Product scarcity also have a significant impact on perceived value of users. Therefore, purchase intention of customers increases when perceived value increases their profit and pleasure feeling.

• The Journal of Asian Finance, Economics and Business
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• v.5 no.4
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• pp.101-105
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• 2018

Price discount is one of the commonly used promotion strategies to increase sales and revenue. If a discount is perceived before the purchase (i.e., pre-purchase discount), consumers are likely to perceive it as a potential gain. If it is noticed after making a regular-priced purchase (i.e., post-purchase discount), consumers may develop negative emotions and attitudes. Based on the rising transparency and omnipresence of price and discount information through web and mobile platforms, we attempt to tackle an understudied topic on the negative effect of post-purchase price discount. Specifically, post-purchase discount information may increase consumers' perception of monetary loss, which may affect consumers' decision to return the product, potentially increasing the operating costs borne by retailers. Based on a close scrutinization of the current market environment and previous academic literature, we suggest a novel conceptual framework to understand consumers' perception, attitude, and behavior (perception of loss, willingness to return) upon perceiving various formats of discount promotion (absolute value vs. percentage discount) posterior to the purchase of a product. We also look at the effect of price level (low-priced vs. high-priced). For marketing practitioners, we intend to suggest optimal promotion formats that can alleviate consumers' negative perceptions and prevent additional operation costs.

• Journal of the Korean Society of Clothing and Textiles
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• v.25 no.6
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• pp.1025-1036
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• 2001

This paper explores the effects of price discount frequency on consumer evaluation of clothing brand equity as well as the impact on consumers who exhibit different consumer characteristics. Following a preliminary investigation, two clothing brand groups were identified according to the frequency of their price discounts, one with a high frequency of price discounts, the other with a low frequency. Each brand group consisted of three women's clothing brands. A questionnaire was developed and administered to 351 females between the ages of nineteen and thirty-four in October 2000. The questionnaire included questions on evaluations on clothing brand equity (i.e., perceived quality, brand image, perceived value, reliability and brand knowledge), on consumer characteristics (i.e., clothing knowledge, clothing evaluative criteria, price perception and demographic characteristics), as well as on price discount frequency. Statistical tests, such as factor analysis. t-test and pearson's correlation, were used to analyze the data. Results of this research showed that price discount frequency negatively impacted consumer perception of clothing brand equity. The negative influence was particularly strong on the perceived quality and brand image dimensions of brand equity. The findings also suggested the effect of price discount frequency on consumer assessment of clothing brand equity was related to consumer characteristics as well. The equity of the clothing brand group with a low frequency of price discounts was positively related to clothing knowledge, price-quality inference, price-prestige inference, sale prone-ness. price mavenism, valuing the fashionable and symbolic uses of clothing and family income. On the other hand, it was negatively related to low price consciousness. The equity of the clothing brand group with a high frequency of price discounts was positively related to utilitarian economic aspects of clothing values as well as to low price consciousness. To establish and maintain high brand equity, marketers must pay attention to the frequency of price discount as it may have a negative impact on clothing brand equity.

• Journal of the Korean Society of Costume
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• v.66 no.2
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• pp.1-14
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• 2016

This study was intended to investigate the influences that consumer's price sensitivity, bundle discount type, and price level of the male cosmetics have on consumer attitude. The design of this research was comprised of $2{\times}2{\times}2$ mixed design studies. The first element was high price sensitivity vs. low sensitivity, the second element was the bundle discount type (mixed leader vs. mixed-joint), and the third element was the price level of male cosmetics (high-price brand vs. low-price brand). The results of this study showed that price sensitivity, bundle discount type and price level of male cosmetic had a statistically significant interaction effect on the consumer's quality perception. The quality perception of low-cost brands for high price sensitivity/mixed-joint bundle group was low. The quality perception of low-cost brands for mixed-leader bundled groups did not change significantly even when the price sensitivity became higher. However, it can be seen as the same result that the overall value is higher when suggested the price information in Mixed-leader bundle than Mixed-joint bundle. In particular, this study suggests that price information should be presented in mixed-leader bundles for high price sensitivity and low cast brands.

• Journal of the Korea Fashion and Costume Design Association
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• v.13 no.1
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• pp.1-10
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• 2011

The purpose of this study was to compare consumers' post acquisition behavior by analyzing the influence of consumer involvement, product price and discount. The data were collected through a survey based on three stages: two pre-tests and a main survey conducted in the U.S and Korea. A total of 520 participants from each country were used. The results of this study are as follows. First, clothing involvement, price and discount had no difference, but there was relationship on discount rate between countries. In addition, there were gender differences in involvement between the countries, and Korea showed a significant relationship in price discount. In general, the involvement of both American and Korean students was high and women had higher involvement than men indicating that women showed more interest in clothing than men. The discount rate was higher in the U.S and had a wider range of discount than Korea. Second, consumer involvement and price discount affected the satisfaction of Korean students whereas only involvement affected the satisfaction of American students. This study will extend understanding of consumer satisfaction between Korea and the United States. With the results of this study, apparel marketers will be able to understand how consumer involvement, price and discount may influence consumer satisfaction and develop effective marketing strategies for their profit.