INFLUENCE OF DISCOUNT PRICE ANNOUNCEMENTS ON CONSUMER’S BEHAVIOR
The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler´s Mental Accounting Theory. The research aims to evaluate the consumers’ behavior when different patterns of discount are offered (in percentage and absolute va...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo
2012-10-01
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| Series: | RAE: Revista de Administração de Empresas |
| Subjects: | |
| Online Access: | http://rae.fgv.br/sites/rae.fgv.br/files/artigos/10.1590_0034-7590201200600006_0.pdf |
| Summary: | The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler´s Mental Accounting Theory. The research aims to evaluate the consumers’ behavior when different patterns of discount are offered (in percentage and absolute value and for larger and smaller discounts). Two experiments were conducted to explore these patterns of behavior and the results that were obtained supported the view that the framing effect was a common occurrence. The patterns of choice of individuals in a sample were found to be different due to changes in the ways discounts were offered. This can be explained by the various ways of presenting discount rates that had an impact on the influence of purchase intentions, recommendations and quality perception. |
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| ISSN: | 0034-7590 2178-938X |