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Price Promotion for Emotional Impact

Price Promotion for Emotional Impact
Aylin Aydinli, Marco Bertini, Anja Lambrecht

Published by Aylin Aydinli
http://www.aylinaydinli.com/

Abstract
Managers and academics often think of price promotions simply as incentives that entice consumers to choose products they otherwise may not even consider. But the prospect of paying a lower price for a given quality can also compromise deliberation, “dumbing down” the purchase decision by making it less consequential. The authors capture this intuition in a dual-process model of behavior, wherein a drop in deliberation tilts the relative weight of cognitive and affective processes in decision-making in favour of the latter, thereby also shifting choice toward goods with a strong affective component. We report experiments that establish the phenomenon, provide support for the proposed mechanism, rule out justification and mood as plausible alternative explanations, and test a number of extensions. Collectively, these findings contribute to the debate on price promotion-induced brand switching and, in particular, they point to a new source of asymmetry in the way consumers substitute one brand for another.

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