BOGO or 50% Off?: The Impact of Sales Promotions and Shopping Channels on Apparel Shopping Behaviors

Date
2017-01-01
Authors
Lee, Yoojung
Im, Hyunjoo
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Abstract

The study aims to test the difference between the online and offline consumer responses to two sales promotion tactics (i.e., bonus packs and price discounts). Three online experiments were conducted, and as a result, Study 1 found that price discounts were perceived as prevention-focused and bonus packs as promotion-focused promotion. Study 2 then found that promotion-oriented participants chose bonus packs (vs. price discounts) more than prevention-focused participants. Lastly, Study 3 showed that participants in the online condition found the sales promotion more attractive and were more likely to purchase the product when the promotion was presented as the price discount (50% off) than the bonus pack (BOGO) while participants in the offline condition rated both promotion tactics equally. This study provides important insights for sales promotion and multichannel retailing, by addressing subtle differences induced by different shopping channels, and emphasizes the importance of developing channel-specific sales promotion strategies.

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