Jun Yao

Although prior research suggests that a bonus pack is perceived as a pure gain and is thus preferred by consumers over a price discount which is perceived as a reduction in loss, the empirical evidence in the literature is mixed about whether consumers prefer price discounts or bonus packs. This research investigates how consumers' regulatory orientation influences their preferences for these two promotional tactics. The authors proposes that prevention‐oriented consumers prefer a price discount over a bonus pack, but promotion‐oriented consumers prefer a bonus pack over a price discount. This effect is due to the regulatory fit between the promotional tactic and consumers' regulatory orientation. A price discount aligns with a prevention orientation to minimize losses, while a bonus pack aligns with a promotion orientation to maximize gains. Furthermore, the authors propose that this regulatory fit effect on preferences is sequentially mediated by the experience of feeling right and perceived value of the promotional tactics. Four studies using different products and different operationalizations of regulatory orientation in both field and online settings provide converging and robust evidence for the proposed effect and underlying mechanism. Finally, the authors show that the proposed effect is attenuated when consumers' level of involvement increases.

Industry-wide crises, characterized by multiple companies within an industry allegedly engaging in similar misconduct, lead to disruptions in the social order. During such crises, one or a few of the involved companies often attract more media attention and receive punishment ahead of the others. Will such punishments take the heat off other involved companies or increase their risk of further punishment? This research shows that the observation of these punishments increases consumers’ intent to punish other involved companies. Observing one involved company get punished signals that the involved companies are indeed at fault, thereby increasing consumers’ certainty in blame attribution. Subsequently, consumers increase their motive to restore social order and their intent to punish other involved companies. Four theoretically and managerially relevant moderators have been identified and tested. Seven studies involving secondary data and experiments with both hypothetical and real behavioral outcomes support the proposed effects.

This study examines how Chinese cultural elements influence the responses of Chinese tourists toward different price discount presentations used by destination retailers. It identifies “8” and combinations of it (e.g., 88) as Chinese cultural icons. It investigates how presenting discounts containing “88” influence the gift purchase intentions and attitudes toward gift shops and the tourism destination of Chinese outbound tourists. The results from two experiments show that Chinese tourists are more likely to purchase gifts and have positive attitudes toward gift shops and their destination when destination retailers use “Pay 88%” than when they use the economically equivalent “Get 12% off” as a price discount. These effects are sequentially driven by consumers’ perceptions of cultural acknowledgment and their positive affect. Moreover, the effects only hold when the country of origin of the retailer is Western; it disappears when it is Chinese.

Purpose: This paper aims to first investigate how unit pricing affects consumers’ grocery purchase decisions and perceptions of the shopping task’s information load. The second goal is to test how time pressure enhances the behavioural and perceptual effects of displaying unit prices. Design/methodology/approach: Two on-line experiments were conducted using national samples of shoppers. In Study 1, participants indicated their choices and perceptions in an inter-brand shopping scenario where prepackaged products have conflicting positions on retail price and unit price. In Study 2, participants conducted the same shopping task but now under a condition of time pressure. Findings: Study 1 shows that unit pricing shifts consumer choices towards the lower unit priced options and improves their perceptions of task information load. Study 2 shows that when consumers are under time pressure, unit pricing shows stronger effects on choices but not on perceptions. Research limitations/implications: The study comprised a fairly homogenous set of low involvement categories and relatively small assortments in a hypothetical purchase setting. Exploration of the role of unit pricing in more complex and more realistic purchase environments pose suitable avenues for future research. Practical implications: This study shows that consumers benefit from unit pricing because it makes it easier for them to find the lower unit priced items and to more quickly complete their shopping task. Retailers will benefit from increased customer satisfaction and possibly an improved store image. Social implications: The study shows that consumers generally benefit from the presence of unit pricing and that unit price information does not create harmful effects in terms of increasing their information load. Originality/value: This study uses a specifically designed and controlled but nevertheless realistic grocery choice task to study the effects of unit pricing in an inter-brand context where there are only small differences in size and price. The study contributes to the literature by showing that in such conditions, unit prices help consumers compare the economic losses associated with product options. Their heuristic role is more pronounced when consumers are under time pressure. The study shows that consumers generally benefit from the presence of unit prices.