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ISSN : 1229-8778
This study focuses on the effect of double-discount promotions on a consumer's perceived quality of a product. Unlike in previous studies that have focused only on the positive effect of double-discounts, the current research has the purpose to study (1)the potential side effects that a double-discount might have and (2)a strategy to prevent its negative side effect. Double-discounts are perceived as unique and rare, which makes it more likely that consumers infer the reason why the promotion is being offered. Inference of discount motivation tends to make consumers perceive quality problem of the discounted product. Thus, double-discounts are likely lead to a lower perception of quality and this can relatively decrease purchase intention when quality is considered important when purchasing a product. Study 1 confirmed that perceived quality is more negative for a double-discount(vs. a single-discount) and the importance of quality moderates the mediation effect of perceived quality on purchase intention of a double-discounted product. That is, purchase intention of a double-discount product is relatively reduced when the importance of quality is higher. Study 2 found that this negative effect was alleviated when a rationale cue for a double-discount, which prevents consumers to perceive a low product quality, was presented. By examining the potential negative effect of double-discounts, this research helps to have a better understanding of double-discount promotions and gives practical implications to marketers.
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