When Discounts Become Predictable – An Analysis of Recurring Sale Promotions and Shopping Days on Consumers’ Purchase Decisions and Consequences for Retailers

Abstract

Increasing promotional activities in the last years lead to decreasing brand and retailerloyalty, along with a declined willingness to pay as well as rising price awareness. Dueto the internet and digitalization, price transparency and predictability of salepromotions increases. In this empirical study, we analyzed the influence of predictable,recurring discounts and shopping days like Black Friday or Cyber Monday on priceexpectation, price perception, willingness to pay and the intention to shift thepurchasing time. In addition, the influence on the internal reference price and the riskof a shift is examined, including the consequences for retailers. We found out, that theprice expectation and perception as well as the willingness to pay decreasessignificantly when discounts are predictable and that consumers are ready to shift theirpurchases in order to gain discounts. This poses special challenges for retailers andrequires them to use their discount policies accordingly.