In Ep. 61, Effects of price discounts

Previous studies in marketing have shown that price discounts have both positive and negative effects on customers’ evaluations and purchasing behavior (Darke and Dahl 2003; Dorzdenko and Jensen 2005; Kocas and Bohlmann 2008). Raghubir et al. (2004) identified three routes of promotional effects: (a) economic, (b) informational, and (c) affective. They argued that the final effect of a price promotion on purchasing decision is a combination of positive and negative economic, informational, and affective influences.

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