The effect of specific discount pattern in terms of price promotions on

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Journal of Retailing and Consumer Services 55 (2020) 102112

Available online 24 March 2020

The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An

experimental research

Naci Büyükda � g

^a^,^*

, Ays¸e Nur Soysal

^b

, Olgun Ki _ tapci

^a

aAkdeniz University, Applied Sciences Faculty, Department of Marketing, Akdeniz University, Uygulamali Bilimler Fakultesi, Konyaaltı, Antalya, Turkey

bAkdeniz University, Vocational School of Korkuteli Marketing, Akdeniz University, Korkuteli Meslek Yüksek Okulu, Korkuteli, Antalya, Turkey

A R T I C L E I N F O Keywords:

Pricing Price promotion Purchase intention Specific discount patterns Perceived price attractiveness Retailing

Retail pricing Experimental design Consumer behaviour

A B S T R A C T

This study aims to investigate consumer perceptions and reactions in terms of specific discount patterns (fixed price, 40% discount, discount from 500 TL to 300 TL and 20% þ25% discount) in price promotion. According to the results, specific discount patterns in price promotion have a significant effect on perceived price attractiveness and purchase intention. When the specific discount patterns in price promotion and gender interaction were analyzed in terms of perceived price attractiveness, the scenario of the “discount from TL 500 to TL 300” significantly differentiated from both the control scenario (fixed price) and experimental scenarios for female.

For males, no significant difference was found between the control and experimental scenarios. In terms of purchase intention, a significant difference was found between the fixed price scenario and the discount scenario from 500 TL to 300 TL and between the fixed price and 20% þ25% discount scenario. The theoretical managerial implications of the study were discussed, and future research suggestions were presented.

1. Introduction

In today’s competitive environment, customers are sensitive to the driving force of the product’s price when deciding where to buy a product (Graciola et al., 2018: 201). Retailers also often apply price promotion to increase store traffic and encourage purchase (Grewal et al., 1998: 336–337). Therefore, price influences the decisions of consumers (Graciola et al., 2018: 202) and is an important element used in marketing activities (Low et al., 2013: 2). Price also plays an important role in the purchasing process of consumers (cited by Diallo, 2012:

362). For his reason, the price is considered to be an important estimator of consumers’ purchasing decisions, and the price is used to communi- cate the quality and value of the product to the consumer (Lien et al., 2015: 211).

The perception of price created by the value offered by the product may affect the purchasing behaviour of the customers through the total benefit (Kim et al., 2012: 243). In other words, when the price of a product is reasonable for the consumer, consumers perceive more benefits, and in this case, the consumer’s purchase intention is also high (cited by Lien et al., 2015: 211). Because consumers generally prefer attractive prices and companies temporarily reduce the prices of

products and make products more attractive and purchasable for the customer (Bambauer-Sachse and Christina Mangold, 2009: 451). As a result, retailers apply to price promotions in specific discount patterns to achieve their goals of increasing customers’ purchasing intent and sales (Bambauer-Sachse and Massera, 2015: 63).

Price promotion is the most frequently used marketing/retail tool for attracting new customers for long-term service providers (Kim, 2018:

100–101). Because retailers lower their prices means that the products become suitable for all buyers (Chen et al., 1998: 358). Given that retailers and brands spend large amounts of money on price promotion, retailers must develop a detailed and sound understanding of price strategies (Ahmetoglu et al., 2014: 705). Because specific discount patterns in price promotion can be done in different ways, and this may cause consumers to encounter more than one option. Thus, the reference points of consumers and their perceptions of value can shift (Chen et al., 1998: 354).

The shift of reference points in consumer preferences may result not only from rational benefit but also from emotional and social benefit.

For example, economists say that if consumers have full knowledge of a product, they will make their decisions rationally and prefer the product that gives them the most benefit (Ahmetoglu et al., 2014: 697). This

* Corresponding author.

E-mail addresses: [email protected] (N. Büyükda�g), [email protected] (A.N. Soysal), [email protected] (O. Ki_tapci).

Contents lists available at ScienceDirect

Journal of Retailing and Consumer Services

journal homepage: http://www.elsevier.com/locate/jretconser

https://doi.org/10.1016/j.jretconser.2020.102112

Received 11 December 2019; Received in revised form 7 February 2020; Accepted 14 March 2020

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situation neglects the assumption that consumers act emotionally.

Because consumers do not act only cognitively in every action they do, for example, although brands provide similar benefits compared to other products, both the high price and the preference of consumers indicate that consumers do not always act rationally. According to Shirai, decisions made by consumers are not merely cognitive elements, but consumers have a desire to achieve both cognitive and emotional satisfaction in decision-making (Shirai, 2009: 2). This is consistent with the behavioural economics literature dealing with decision-making psychology, and behavioural economics is based on the assumption that people intuitively engage in decision-making (Ahmetoglu et al., 2014: 697). As a result, consumers can be affected by price both emotionally and cognitively because the price is one of the factors that affect consumption values by producing different reactions in terms of products purchased for different purposes (hedonic, functional or social) (Kim and Jang, 2013: 307).

The price offered by the businesses should be attractive to the consumer and affect the purchase intention. The purpose of this study is to investigate how consumers react to specific discount patterns in terms of price promotion scenarios. Because the price promotion that consumers perceive the highest value through specific discount patterns can positively affect the sales and profitability of the businesses, it is important to understand the responses that consumers give to specific discount patterns. However, there is a limited number of studies regarding specific discount patterns in terms of price promotions (Bambauer-Sachse and Christina Mangold, 2009; Bambauer-Sachse and Grewal, 2011). In the literature, Bambauer-Sachse and Massera (2015) discuss the effect of percentage-off and cents-off discounting on the reference price adaptation; DelVecchio et al. (2009) discuss the effect of percentage-off and cents-off and revised prices on reduced price perception and recalled price; Mukherjee et al. (2017) discuss the effect of pre-season and season prices (discounted and normal price) on purchase intention and Chen et al. (1998) investigated the effect of cents-off and percentage-off discount types on purchase intention.

Despite these studies, there are few studies on specific discount patterns in terms of price promotion scenarios. When a few studies are examined, it is seen that the studies generally focus on net discount (cents-off) and percentage discount (percentage-off). However, businesses do not only apply net discounts and percentage discount patterns.

Apart from these discount patterns, businesses apply the %þ% specific discount pattern. Also, some of the businesses apply fixed prices. The first contribution of this study to the literature is that various price discount patterns can be compared together. Thus, the differences between fixed price, only per cent discount, net discount and %þ% discount patterns in terms of consumer behaviour can be analyzed. The second contribution of this study is that the price level investigated experimentally differs from other studies. Because in other studies in the literature, either a low price or a high price has been used. Other than studies in the literature, an average price was applied in terms of buying power in this study.

The third contribution of this study to the literature is to investigate the effect of the interaction of specific discount patterns with the gender on perceived price attractiveness and purchase intention. However, the effect of gender on specific discount patterns in terms of price promotion has not been investigated. Gender is an important socio-demographic variable used in the segmentation of most of the products and services (Kim et al., 2007: 423; Melnyk, 2014: 336; Kim et al., 2019: 214) and marketing communication (Kim et al., 2007: 425). For example, in terms of the wine market, it has been found that the gender variable affects the effectiveness of promotions (Kim et al., 2019: 214). Besides, gender is an important personal characteristic feature in understanding consumer behaviour (Kwun, 2011: 252; Han et al., 2019: 87). According to the gender socialization theory, since males and females have different values and psychological characteristics, gender can affect individuals’

attitudes, beliefs, ideas and behaviours (Calabrese et al., 2016: 136;

Vicente-Molina et al., 2018: 91). It is also an effective method to

investigate the effect of gender differences in terms of experimental studies (Melnyk, 2014: 337). The final contribution of the study to the literature is that the research is carried out in Eastern cultures. Gender differences in behaviors are based on cultural role expectations (Tifferet and Vilnai-Yavetz, 2014: 389). Turkey is an important country incor- porating practices of the Eastern and Western cultures and the findings obtained from this study are thought to add value to the literature.

In the first part of this article, price and price promotion is explained, and in the second part, the perceived price attractiveness and purchase intention literature are explained. In the third stage, the effect of price promotion scenarios on perceived price attractiveness and purchase intention was examined, and the role of gender-related to this effect was analyzed by experimental design method. In the fourth stage, the findings were discussed, and the results and managerial implications were presented.

2. Literature review and hypothesis development 2.1. Perceived price and perceived price attractiveness

Price is an important parameter in the marketing literature and is thought to be an indicator of the cost of the product (Erdil, 2015: 197).

Price is defined as the sacrifice of consumers for goods or services and is perceived by consumers as a quality indicator (Zeithaml, 1988: 10).

Perceived price refers to a subjective form of the monetary value of a product, such as whether a product is cheap or expensive, and the judgment on the purchasing power of consumers (Calvo-Porral and L�evy-Mangin, 2017: 91). As a result, the perceived value of the price is more important for consumers than the real value. The price in consumers perception have seen differently (cheap/expensive) for each consumer. Therefore, there are various pricing tactics developed by manufacturers or retailers to create a more favourable price perception on consumers and the price perception formed within these tactics is one of the important factors affecting the decisions of consumers during purchasing (Shirai, 2017: 82). In conclusion, understanding how consumers evaluate price practices is an important factor in determining price levels effectively (Kim and Jang, 2013: 306).

One of the pricing methods used in the evaluation of prices is reference pricing. The reference price is the price at which no discount is applied (Ahmetoglu et al., 2014: 699). It also expresses the individual, psychological and internal price beliefs used to evaluate the price faced by consumers at the time of purchase and is a dynamic and multidi- mensional structure of the integration of price information in consumers’ memories (cited by Bambauer-Sachse and Massera, 2015: 63).

According to Kim et al. (2012), consumers compare current prices with reference prices during shopping and shape their price perceptions accordingly (cited by Lien et al., 2015: 211). The presence of a reference price increases consumers’ interest and purchase intention and affects consumers (Ahmetoglu et al., 2014: 699). In this case, the price offered by the businesses (regardless of the actual price) can significantly affect consumers’ perceptions and behaviours (Ahmetoglu et al., 2014: 702).

As a result, in this pricing approach, the price is determined, and it is aimed to increase the intention of purchase and the attractiveness of the price by providing a psychological and monetary benefit to the consumer by making a discount at a certain rate or amount. For example, a product of $ 300 is reduced to $ 210 with a 30% or $ 90 discount. The reference price is important not only for consumers but also for retailers.

Because offering a price close to the reference price in the minds of consumers may affect consumers’ purchasing decisions (cited by Bam- bauer-Sachse and Massera, 2015: 64).

The transactional benefit resulting from the difference between the price the label has to pay and the reference price they expect to pay for a product affects the consumer’s perception of the price (Kim et al., 2012:

241–242). As a result, the reference price is a reason for customers to decision-making. The adaptation level theory also says that consumers evaluate the price of the product by comparing it with a reference price

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and thus decide whether the price of the product is reasonable (Parguel et al., 2016: 342). In other words, consumers prefer attractively priced products. Therefore, businesses or companies make price promotions that may affect consumers.

An example is to create a lower price perception in consumers by saying daily or weekly prices of goods and services instead of monthly fees (Bambauer-Sachse and Grewal, 2011: 156). Consumers need to perceive the price as attractive in terms of demand for the product.

According to Xia and Monroe (2004), price attractiveness is perceived as price satisfaction, and according to Lichtenstein et al. (1988), it is defined as acceptable price (cited by Bambauer-Sachse and Christina Mangold, 2009: 453). Consequently, achieving an acceptable and satisfactory price promotion for consumers is an important issue that needs to be explored for retailers and businesses.

What is important for price promotion is to attract consumers through the specific discount pattern. Therefore, retailers can apply different price promotion scenarios such as a percentage-off discount, cents-off discount (net discount), discount under a time constraint. For example, according to Chen et al. (1998: 356), although a $ 1000 discount on a $ 20,000 car corresponds to a discount of about 5%, the net monetary discount is more attractive for individuals. On the other hand, a 50% discount on a Coke soft drink of $ 0.5 corresponds to a $ 0.25 discount, but the percentage-off discount is more attractive. Also, consumers’ perceptions of prices may differentiate in term of absolute or relative. For example, if you consider a $ 100 jacket and a $ 400 TV, a $ 20 discount can be different from absolute ($ 20 discount) and relative (20% in jacket, 5% discount on TV) (Chen et al., 1998: 355–356). As a result, different specific discount pattern in price promotion scenarios made by businesses may cause different psychological price perceptions for the consumer.

To measure the effect of price perceptions on the consumer, Mukherjee et al. (2017) examined the price perception regarding the differences between the season price and the pre-season price in terms of promotion. They also stated that the price of the discounted product may be positive for the present-oriented customer but not positive for the future-oriented customers and that quality perception should be increased to affect future-oriented customers (Mukherjee et al., 2017:

208). In the study conducted by Bambauer and Gierl (2008), the response of pricing to products offered in different sectors on high and low price increases was measured in terms of full-price and price partitioning. According to the results of this study, although price partitioning provides a more positive evaluation than total price level, it creates a perception of higher complexity in price structure. The authors also stated that price partitioning leads to perceived manipulative intention higher than the total price utilization. Finally, they said that monetary surcharges are preferable than the percentage surcharges and that the monetary surcharges create a perception of less complexity for the consumer in terms of price partitioning (Bambauer and Gierl, 2008:

268). The study by Chen et al. (1998: 353) analyzed the effect of both percentage and net discount promotions. Accordingly, the authors stated that the cash discount for higher-priced products (because in high-priced products, the percentage-off discount refers to low value and cash discount refers to high value) and the percentage discount for lower-priced products (because in low-priced products, the percentage-off discount refers to high value and cash discount refers to low value) were more effective. In another study, it was investigated whether the price is perceived lower and is more attractive for the consumer in case of the temporally reframed price (Bambauer-Sachse and Christina Mangold, 2009: 451). According to the results of this study, temporally reframed price is more attractive to the consumer than total pricing but more complex and more open to manipulation.

One of the prominent applications of retailers is the price derivation methods (Martin et al., 2009: 588). Therefore, there are various pricing tactics developed by manufacturers or retailers to create a more favourable price perception of consumers. Within the framework of these tactics, price perception in consumers is one of the important

factors that affect the decisions of consumers during the purchase (Shirai, 2017: 82). The application of a reference price in the pricing label is also a guide for consumers to evaluate the price. According to Putler, the reference price has a significant impact on consumer behaviour (Putler, 1992: 287). According to Ahmeto�glu et al. (2014), the reference price increases the consumer interest and intention to purchase the product (Ahmetoglu et al., 2014: 699). The adaptation level theory states that the reference price is effective in evaluating the product price (Parguel et al., 2016: 342). Bambauer-Sachse and Grewal (2011) state that re-priced products positively affect the perceived price attractiveness of consumers (Bambauer-Sachse and Grewal, 2011). As a result, specific discount pattern scenarios applied in price promotion do not consist of a type of single promotion, and price promotion in which different specific discount pattern scenarios are applied can affect perceived price attractiveness.

Price promotions can change consumers’ purchasing decisions (cited by Chen et al., 1998: 353) and net discount, a percentage discount, or both can be used together for price promotion (Chen et al., 1998: 353).

When price promotions made using these methods are evaluated, the price promotions that are easily calculated arithmetically for consumers provide a more positive evaluation opportunity (Bambauer-Sachse and Grewal, 2011). For example, if price promotion can lead to a higher calculation tendency, it can lead to a lower price attractiveness and a stronger sense of spaciousness (Bambauer-Sachse and Grewal, 2011:

164). Because a revised price (net price) can be known more easily for consumers, it is necessary to make transactions by the consumers to know a percentage discounted price. In other words, the consumer price perception of per cent discount and net discount promotions differs because the percentage discount makes it difficult to determine the price. After all, it requires multiplication or division (DelVecchio et al., 2009: 337–338). Also, when the perceived price attractiveness is analyzed in terms of pricing, the net amount reduction made by retailers in products becomes a real money-saving for the consumer. It is stated that the greater the amount of monetary savings, the greater the perceived attractiveness of price (Chen et al., 1998: 356). Therefore, the following hypothesis can be established in terms of perceived price attractiveness.

H1. Specific discount pattern in terms of price promotion scenarios have a significant effect on perceived price attractiveness.

H2. There is a significant difference between the price promotion scenarios that contain specific discount patterns in terms of perceived price attractiveness.

2.2. Purchase intention

It is important to understand consumers’ purchase intention (Hsu et al., 2017: 145). An increase in purchase intention reflects an increase in the probability of purchase (Martins et al., 2019: 379). Purchasing intention is also one of the important indicators for predicting consumer behaviour (Wu et al., 2011: 32; Hsu et al., 2017: 145). According to Fishbein and Ajzen (2010), purchase intention is seen as the precursors of actual purchasing behaviour (cited by Bachleda et al., 2016: 294). If consumers intend to make a positive purchase, then a positive commitment to a real purchase can also be asserted (Martins et al., 2019:

379; Wu et al., 2011: 32).

Purchase Intention is defined as the possibility of planning or requesting to purchase a particular product or service in the future (Wu et al., 2011: 32). In other words, according to Diallo (2012), consumers’ purchase intention means that any attempt to buy a product or service (cited by Erdil, 2015:200). One of the methods that can be used to increase purchase intention is promotion. According to Campbell and Diamond (1990), promotion programs can be designed in two different ways: increasing product value (non-monetary promotion) or reducing losses (monetary promotion) (cited by Liang, 2014: 82). In this study, consumers’ purchase intention responses to monetary promotion were

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investigated since measurements were made for the products that consumers have followed for a long time. Because according to Yadav and Pathak (2017), price is always one of the most important factors in determining the decision-making process of consumers (cited by Zhang et al., 2018: 1499) and Merchants use price reductions for sales promotion (Peng et al., 2019: 319). Because sales promotion accelerates the shopping of consumers, reduces the cost of inventory of retailers (Laroche et al., 2003: 513) and provides consumers with economic motivation for the purchase of a brand (Raghubir, 2004: 10). For example, according to a study conducted by Hsiao & Chen in 2016, the perceived good price has a direct and strong impact on purchase intention (Hsiao and Chen, 2016: 18,24).

In price promotion, consumers feel losing less than usual (Liang, 2014: 82). Therefore, the discounted price given together with the reference price can minimize the perceived loss of consumers or increase the perceived benefit. Behavioural decision studies indicate that consumers make decisions not only with current prices but also with reference prices (Zhang and Chiang, 2020: 1). As a result, the perceived price has an important role in consumers’ buying behaviour towards brands as the main factor of the purchase objective (Calvo-Porral and L�evy-Mangin, 2017: 91). In the study conducted by Liu and Chou in 2015, two different scenarios were investigated: package pricing (one free for the second one) and a 50% discount on the total price for the second product (Liu and Chou, 2015). According to the results of the study, package pricing, which includes two different products, consumers made a lower perceptual price assignment for the complementary product and showed more purchase intention. In the same study, in pricing where two identical products were offered, consumers perceived the price higher for the second free product and showed low purchase intention. As a result, the perception of specific discount pattern in terms of price promotion affects consumers’ purchasing intentions. In other words, consumers ‘perception of price may affect customers’ buying behaviour through total benefit (Kim et al., 2012: 243). Also, the consumer’s response to per cent discount and net discount promotions can differentiate (DelVecchio et al., 2009: 337–338). Therefore, the following hypothesis can be established in terms of purchase intention.

H3. Specific discount pattern in terms of price promotion scenarios have a significant effect on purchase intention.

H4. There is a significant difference between the price promotion scenarios that contain specific discount patterns in terms of purchase intention.

2.3. Moderating role of gender

Gender is a set of traits that enable the separation of females and males and is based on the psychological structure, not biological sex (Hwang et al., 2019: 96). Gender is shaped through institutional and social customs and is constantly redefined through daily practices and interactions because culture and society are a stronger explanation mechanism than nature and biology (Mortimer and Clarke, 2011: 576).

In clinical studies, it has been shown that two hemispheres of the brain are more symmetrical in females and more specialized in males, and according to clinical findings, it is generally accepted that females are verbally talented and males exhibit superior mathematical ability (Kim et al., 2007: 425). With millions of years of evolution, each gender has specific social roles (experienced, relational, descriptive and relevant for females; independence, competency, task-oriented, and useful for sur- vival for male) that possess different psychological features (Enav and Daphna, 2018: 36). It is also stated that considering the service and environmental behaviours, gender can be used as a moderator variable (Enav and Daphna, 2018: 36; Vicente-Molina et al., 2018: 91). Because gender can affect attitudes, beliefs, ideas, behaviours (Vicente-Molina et al., 2018: 91). In the field of consumer behaviour, if there are gender differences in terms of psychology, there may be different marketing strategy demands for each gender (Enav and Daphna, 2018: 35). Gender

is an important socio-demographic variable that can also affect the ef- ficiency of promotions (Kim et al., 2019: 214) and may show statistically significant differences in terms of consumers’ expectations (Calabrese et al., 2016: 135; Sreen et al., 2018: 181). According to the gender socialization theory, because females and males have different values and psychological characteristics, gender can affect the moral tendencies of individuals and the outcomes of their practices and decisions (Calabrese et al., 2016: 136). As a result, gender differences are widely used as a segmentation variable and the use of gender in experimental studies is an effective technique (Melnyk, 2014: 336–337). In addition, gender is important in understanding consumer behaviors and individuals’ decisions (Kwun, 2011: 252; Han et al., 2019: 87) and based on cultural role expectations (Tifferet and Vilnai-Yavetz, 2014: 389). According to Campbell et al. (2014: 42), the perception of price may depend on socio-economic status and demographic characteristics. As a result, gender, one of the most important demographic variables, may differ according to consumers’ perceptions of price. For example, according to a study by Hsiao and Chen in 2016, gender and income have a significant impact on purchase intention. Consequently, the following hypotheses are given.

H5. The interaction of the price promotion scenarios that contain specific discount patterns and gender has a significant effect on perceived price attractiveness.

H6. The interaction of the price promotion scenarios that contain specific discount patterns and gender has a significant effect on purchase intention.

3. Methodology 3.1. Data collecting

Survey or quantitative observation techniques are vital for descriptive research designs, and consumers’ behaviour, attitudes, awareness, motivation, demographic characteristics and lifestyles can be examined with this survey technique (Malhotra and Birks, 2006: 224). In this study, the perceptions and intentions of consumers regarding specific discount patterns were investigated. Young people who continue their undergraduate education are preferred as the target group. These young people who participated in the survey were born in the 1990s and are in the millennial generation. Sports footwear brands operating in Turkey are particularly focused on the millennial generation. According to trade sources, the millennial generation is the main consumer in terms of sportswear (https://www.euromonitor.com/apparel-and-footwear-in- turkey/report Accessed date: January 14, 2020). Also, according to the observations made by the researchers, a great majority of the young people who continue their undergraduate education prefer to wear sports shoes. According to Oymen (2018), today’s sports shoes are seen € as an integral part of individuals’ daily activities in addition to their sports activities and are especially preferred by young consumers. Be- sides, with the change in the viewpoint of sports shoes reflecting the male identity in the 1980s and the fashion world began to produce sports shoes for women, sports shoes became preferred by all individuals who follow sports fashion (Oymen, 2018: 247–248). Other factors that in-€ fluence young people’s choice of sport shoes include flexibility of the shoes, visually appealing to the eye, ease of use and lightness, foot health suitability, durability and fashion, colour and pattern diversity, especially complementary to everyday clothing and provide status (Akkoç et al., 2012: 212; Onurlubas¸ and Oztürk, 2018: 87; € Oymen, 2018: 247). € Therefore, consumers’ perceptions of the price have been examined through sports footwear.

As a data collection method, four different scenario questionnaires were applied with a convenience sampling method. 299 valid questionnaires were obtained. The first of these scenarios is the fixed price scenario applied to the control group. This scenario is “Imagine sports shoes that have long been of interest to you. The price of the sports shoes you

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are interested in 300 TL. You entered a store where sports shoes were sold and talked to the sales representative about sport shoes. The sales representative told you that “This sport shoes has never been sold at a discount and never expected it to be discounted”. Imagine yourself in this case and answer the following survey questions”. The other scenarios are created for the experimental group and are in the form of 3 different price promotions.

These scenarios are “500 TL to 300 TL discount”, "%40 discount” and "%

20þ%25 discount”. Manipulated or experimental scenario is “Imagine sports shoes that have long been of interest to you. The price of sports shoes you are interested in 500 TL. In such a case, while you are shopping in the shopping centre, you find that the sports shoes that interest you in a sports shoe store have been discounted and the price has decreased from 500 TL to 300 TL. Imagine yourself in this case and answer the following survey questions”. Regarding the manipulated scenario, the discount price was offered to the participants differently, although the final price of the sports shoes was 300 TL. Also, the scenarios presented were supported visually, and it was tried to enable consumers to internalize the scenarios. The corresponding visual scenarios are shown in Fig. 1.

3.2. Measures

The perceived price attractiveness scale items used in the study were adapted from the study conducted by Bambauer-Sachse and Grewal (2011) and Bambauer and Gierl (2008) and measured with three items.

The purchase intention scale was adapted from the study by Weisstein, Song, Andersen, & Zhu in 2017 and measured with three items. All variables used in the study were measured with a 7-point Likert scale.

3.3. Experimental design method

Causal research is used to determine the cause and effect of consumer behaviour, to understand which variables are cause or effect variables, to determine the relationship between variables and to test hypotheses (Malhotra and Birks, 2006: 69–70). The method that can be used to determine causal relationships between variables in experimental design. This method requires a causal design in which independent variables are manipulated in relatively controlled environments, and dependent variables are controlled. As a result, the causal relationship can be measured as a result of the effect of manipulations (Malhotra and Birks, 2006: 70).

Experimental designs are pre-experimental, full experimental, quasi- experimental and statistical design in four different ways (Malhotra and Birks, 2006: 268–269) and experimental design methods used in this study are statistical group design and factorial design methods. In the statistical group design method, there is no random assignment pro- cedure to the groups, and there are two different groups as experimental and control groups (Malhotra and Birks, 2006: 270). In the control group, the attitude of consumers is measured with an unmanipulated scenario. In the experimental group, the attitudes of consumers regarding manipulated scenarios are measured, and the differences between these measurements are analyzed. In this method, at least two external variables, such as selection bias and mortality effect, should be analyzed. In this study, the date effect has been eliminated since the questionnaires related to the experimental and control groups were applied in the same period. Since all participants completed the

questionnaire once, the maturity effect was eliminated. Also, since the measurement was performed once for each group, the test effect was eliminated. Finally, it can be said that the death effect has been eliminated since the incomplete questionnaires are not included in the analysis, and all participants completed the questionnaires. Since consumers’ perception of the price depends on socio-economic status and demographic characteristics (Campbell et al., 2014: 42), the selection bias was examined by whether participants in the control and experimental groups differ significantly in terms of disposable income and gender variables. In terms of participants assigned to the groups, it can be said that there was no selection bias in this study because the variables of gender (Fisher’s Exact test p ¼0.463) and disposable income variables (Pearson chi-square ¼3188 and p ¼0.363) did not show a significant difference. In the factorial design method, if the causal variables affecting the dependent variable interact, the causal effects of this interaction on the dependent variable can also be analyzed (Malhotra and Birks, 2006: 277). The process, after expressing the experimental design method, is data analysis.

3.4. Data analysis

Principal Components factor analysis is used to create new and few variables representing a large number of items that are related or correlated with each other (Hair et al., 2014). Therefore, principal components analysis was applied to perceived price attractiveness and purchase intention structures. The results of this analysis are given in Table 1.

According to the results of the principal components factor analysis, perceived price attractiveness and purchase intention dimensions have high reliability and sufficient sample size. However, one of the pre- liminary tests required for the application of the experimental design method is the manipulation check test. This test measures whether the

Fig. 1. Scenario images of price promotion.

Table 1

Results of factor analysis of perceived price attractiveness and purchase intention.

Factor Items of Perceived Price Attractiveness Factor Loadings In general, the discounted price of sports shoes is well-priced 0,885 The discounted price of sports shoes is attractive 0,872 Compared with similar products’ prices, the discounted price is a

good deal 0,852

The Percent of Explained Variance ¼%75,6; Reliability ¼0,839; KMO Measures of Sampling Adequacy ¼0,723 and Bartlett Test ¼355,197**

Factor Items of Purchase Intention Factor

Loadings If I were going to buy sports shoes, the probability of buying

discounted sports shoes is high. 0,895

The probability that I would consider buying discounted sports

shoes is high. 0,915

The likelihood that I would purchase discounted sports shoes is

high 0,877

The Percent of Explained Variance ¼%80,3; Reliability ¼0,875; KMO Measures of Sampling Adequacy ¼0,733 and Bartlett test ¼469,694**

*: statistically significant at 0,05 level; **: statistically significant at 0,01 level.

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scenarios applied in terms of control and experimental groups are successful.

3.4.1. Manipulation check

To understand whether the scenarios applied to consumers are successful or not, the responses of the participants in the control and experimental groups to the scenarios should be different in terms of scenarios. Therefore, differences in the fixed price scenario and manipulated price scenarios in terms of control and experimental groups were examined by chi-square analysis. According to the scenario types, the chi-square value (Pearson chi-square) of the control and experimental groups was 299,00 ** (df ¼3, p ¼0,000). According to this result, there is a significant difference between the control and experimental groups in terms of scenario types. Therefore, the experimental design method was applied as the data analysis method. Through this method, it is aimed to understand how perceived price attractiveness and purchase intention differ according to experimental and control groups. Descriptive statistics related to the scenarios presented to the experimental and control groups are given in Table 2.

In terms of perceived price attractiveness, the highest average value given by the survey participants to the scenarios belongs to the scenario of “discount from 500 TL to 300 TL”, and the lowest average belongs to the scenario of “fixed price”. Similar results were obtained in terms of purchase intention. According to Panel A in Table 2, there are differences in the values given to the scenarios both in terms of perceived price attractiveness and purchase intention. Whether these differences were significant was investigated, and the results are given in the same table.

According to the results of Panel B in Table 2, types of the specific discount pattern in terms of price promotion scenarios have a significant effect on both perceived price attractiveness and purchase intention (F

¼5,945, p ¼0,00 **; F ¼6,227, p ¼0,00). Therefore, H1 and H3 hypotheses were not rejected. Also, the results showed that the power analysis level was 0.955 in terms of perceived price attractiveness and 0.963 in terms of purchase intention and that the results related to the relationship between variables were strongly supported. The scenarios explained 5.7% of perceived price attractiveness and 6% of purchase intention. As a result, the specific discount pattern in terms of price

promotions offered by retailers significantly affect consumers’ perceived price attractiveness and purchase intention. Differences between the scenarios were tested by Scheffe test for perceived price attractiveness and Dunnet T3 test for purchase intention. As a result of this test, the results of perceived price attractiveness and purchase intention are given in Panel C in Table 2.

According to the results of multiple comparison tests, there is a significant difference between “Fixed price” and “Discount from 500 TL to 300 TL” scenarios (p ¼0,001) in terms of the perceived price attractiveness. Although other scenarios were higher than the fixed price scenario in terms of average value, they did not show a statistically significant difference. As a result, the H2 hypothesis could not be rejected because at least one difference was sufficient. In terms of purchase intention, there is a significant difference between “fixed price” and “Discount 500 TL to 300 TL” scenario and “fixed price” and “20% þ 25% discount” scenario. H4 hypothesis could not be rejected. A graph of scenario types in terms of perceived price attractiveness and purchase intention is given in Fig. 2.

The last element investigated in the study is whether the interaction of gender and types of the specific discount pattern in terms of price promotion scenarios affects dependent variables. Descriptive statistics regarding the scenario and gender interaction are given in Panel A in Table 3.

When types of the specific discount pattern in terms of price promotion scenarios and gender interactions are analyzed in terms of perceived price attractiveness and purchase intention, according to gender, scores given to different price promotion scenarios differ. For example, in terms of perceived price attractiveness, the average score given by the male participants to the percentage and fixed price scenario is higher, whereas the average score given to the net discount scenario is higher for women. In terms of purchase intention, the fixed price scenario has a higher average value for men, while manipulated price reductions have a higher average value for women. However, experimental design analysis was conducted to determine whether the interaction of types of the specific discount pattern in terms of price promotion scenarios and gender showed a significant difference in terms of perceived price attractiveness and purchase intention and the results are given in Panel B in Table 3.

Table 2

Specific discount pattern statistics of the perceived price attractiveness and purchase intention.

Panel A: Scenario Statistics Of Specific Discount Pattern For Perceived Price Attractiveness And Purchase Intention

Scenario Type Perceived Price Attractiveness Purchase Intention

N Mean SD N Mean SD

Fixed Price 77 3,59 1,75 77 4,38 1,87

%40 Discount 77 4,01 1,49 77 4,88 1,68

Discount from 500 TL to 300 TL 69 4,67 1,62 69 5,52 1,38

%20 þ%25 Discount 74 4,32 1,59 74 5,14 1,55

Homogeneity Test F ¼0,812 and p ¼0,488 F ¼3.467 and p ¼0,017**

Panel B: Analysis of the Effect of Specific Discount Pattern In Terms of Price Promotion Scenarios on Perceived Price Attractiveness and Purchase Intention

Independent Variable F Value Df P Value Power Stat. F Value Df P-Value Power Stat.

Scenario Type 5945 3 0,001** 0,955 6227 3 0,000** 0,963

The Percent of Explained Variance R²¼0,057 and Adjusted R²¼0,048 R²¼0,06 and Adjusted R²¼0,05 Panel C: The Comparison Test Results of The Specific Discount Pattern In Terms of Price Promotions Scenarios

Perceived Price Attractiveness Purchase Intention

Control Group Experiment Group Mean Difference P Value Mean Difference P Value

%40 Discount 0,42 0,449 0,49 0,316

Fixed Price Discount from 500 TL to 300 TL 1,08** 0,001 1,14** 0,001

%20 þ%25 Discount 0,73 0,054 0,76* 0,046

Experiment Group Alternative Experiment Group Mean Difference P Value Mean Difference P Value

%40 Discount Discount from 500 TL to 300 TL -,66 ,112 0,63 ,139

%20 þ%25 Discount -,31 ,715 0,25 ,813

*: statistically significant at 0,05 level; **: statistically significant at 0,01 level.

Note: All values are rounded to two digits.

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According to Panel B in Table 3, the interaction of gender and types of the specific discount pattern in terms of price promotion scenarios is a significant variable in terms of perceived price attractiveness (p ¼ 0,003). However, this interaction does not have a significant effect on purchase intention. Therefore, advanced statistical analysis of this interaction has not been conducted in terms of purchase intention. As a result, the H₆hypothesis was rejected. However, the interaction of gender and types of the specific discount pattern in terms of price promotion scenarios is an important input for perceived price attractiveness. According to Panel B in Tables 2 and 3, the effect of specific discount pattern types on perceived price attractiveness is 5.7%, but this effect increases to 10.3% when the gender variable is taken into consideration. In this case, it is considered that the gender variable should be taken into consideration in terms of perceived price attractiveness. As a result, the H5 hypothesis could not be rejected. Advanced statistical methods were used to examine the effect of gender on the specific discount pattern in terms of price promotion scenarios. In terms of this interaction, it is provided to understand how the types of the specific discount pattern in terms of price promotion scenarios react to the gender variable. Analysis results for this interaction are shown in Fig. 3.

4. Discussion

Since price promotion makes products more attractive to consumers (Bambauer-Sachse and Christina Mangold, 2009: 451), it enables consumers to perceive that they benefit more. As a result, this leads to an

increase in consumers’ intention to purchase the product or perceived price attractiveness. However, according to Parguel et al. (2016: 342), the existence of a reference price is necessary and important for consumers to make an assessment. The findings obtained in this study are in parallel with the literature. For example, in this study, the average value of the fixed and non-reference price was the lowest (3,59), while the average value of the reference and discounted prices was higher than non-reference price. As a result, it can be stated that the presence of the reference price is necessary for price promotion scenarios.

The most important finding researched in the study is the consumer response to the specific discount pattern used in price promotion.

Related to this, percentage and net discount of the specific discount pattern in terms of price promotion scenarios were investigated (Chen et al., 1998). This study suggested that the net discount scenario should be applied for high-priced products and the per cent discount scenario should be applied for low-priced products (1998: 356). However, there are no studies in terms of an average price in the literature, and this represents an important gap in the literature. Also, it has been found that a price promotion method in the form of additive percentage (%þ%) discount scenario is not investigated. Therefore, the study contributes to the literature. As a result of this study; specific discount pattern in terms of price promotion scenarios is important inputs both in terms of perceived price attractiveness and purchase intention. Gender has a significant impact on price manipulation scenarios that are manipulated in terms of perceived price attractiveness. In terms of the whole sample, a significant difference was found between the discount scenario from 500 TL to 300 TL and the fixed price scenario from 300 TL. However, there was no significant difference between the other scenarios. In terms of both female and male, a significant difference was found between the discount scenario from 500 TL to 300 TL and the fixed price scenario.

However, there was no significant difference between the other scenarios. However, when the specific discount pattern in terms of price promotion scenarios and gender interaction were included in the model, different and important findings were obtained. According to these findings, the scenario of the “discount from 500 TL to 300 TL” significantly differentiated from all other scenarios (control and experimental scenarios) for female. Scenarios other than the “discount from 500 TL to 300 TL” did not show a significant difference in terms of both control and experimental scenarios for female. The highest score is in the 20% þ 25% discount scenario, while the lowest score is in the fixed price scenario in terms of male. Besides, the percentage scenario values are higher than the net discount scenario values. However, no significant difference was found among the four different scenarios for male.

Gender did not show a significant impact and difference on the purchase intention. In terms of purchase intention, the scenario “discount from TL 500 to TL 300⁰⁰and “20% þ25% discount” differentiated significantly from the “fixed price” scenario. However, the manipulated scenarios did not differ significantly from one another. DelVecchio et al. (2009:

337–338) stated that the net discount price perception would be different than the percentage discount price perception in terms of specific discount pattern in price promotion scenarios. The findings were consistent with the literature. However, in terms of the findings, it is recommended to consider the price level and gender variable. Other- wise, comments on the findings are incomplete. Furthermore, according to the literature, the unreasonable reduction in price promotions may adversely affect the quality of the brand and the internal reference price of consumers, and as a result, the businesses may be suffered because high prices offer high-quality perception (Grewal et al., 1998: 333;

Koschmann and Isaac, 2018: 377). This study aims to measure the effect of specific discount pattern in terms of price promotion scenarios on consumer behaviour. Therefore, “sports shoes they have been following for a long time” was added in the survey scenarios used in this study.

Thus, it is planned that consumers will respond to sports shoes that they perceive as high quality. Thus, the perception of poor quality that may arise from the price reduction for the consumers is eliminated.

Fig. 2. The effect of scenario type on perceived price attractiveness and purchase intention.

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Table 3

The interaction of specific discount pattern and gender statistics of the perceived price attractiveness and purchase intention.

Panel A: The Results of the Descriptive Statistic on The Interaction of Scenario Type and Gender

Scenerio Type Perceived Price Attractiveness Purchase Intention

Gender N Mean SD Gender N Mean SD

Fixed Price Female 37 3,23 1,72 Female 37 4,26 2,05

Male 40 3,92 1,73 Male 40 4,50 1,69

%40 Discount Female 37 3,87 1,34 Female 37 5,00 1,60

Male 40 4,14 1,62 Male 40 4,78 1,77

Discount from 500 TL to 300 TL Female 35 5,18 1,58 Female 34 5,89 1,31

Male 33 4,12 1,53 Male 34 5,17 1,39

%20 þ%25 Discount Female 36 3,98 1,35 Female 37 5,18 1,61

Male 37 4,64 1,78 Male 37 5,12 1,54

Homogeneity Test F ¼1063 and p ¼0,388 F ¼2411 and p ¼0,021**

Panel B: The Analysis Results of The Interaction of Scenario Type and Gender in Terms of Perceived Price Attractiveness and Purchase Intention Perceived Price Attractiveness Purchase Intention

F Value Df P Value F Value Df P Value

Scenario Type 6002 3 0,001** 6282 3 0,000**

Gender 0,546 1 0,461 1025 1 0,312

Scenario Type*Gender 4644 3 0,003** 1077 3 0,359

The Percent of Explained Variance R²¼0,103; Adjusted R²¼0,081 R²¼0,073; Adjusted R²¼0,051 Panel C: The Results of The Interaction of the Scenario Types And Gender on Perceived Price Attractiveness In Terms of Gender

Gender Scenario Types Alternative Scenario Types Mean Difference P Value

Female Fixed Price %40 Discount -,640 ,509

Discount from 500 TL to 300 TL 1947 ,000**

Discount %20 þ%25 -,747 ,275

%40 Discount Fixed Price ,640 ,509

Discount %20 þ%25 -,108 1000

Discount from 500 TL to 300 TL Fixed Price 1947 ,000**

%40 Discount 1307 ,003**

Discount %20 þ%25 1199 ,010**

Discount %20 þ%25 Fixed Price ,747 ,275

%40 Discount ,108 1000

Male Fixed Price %40 Discount -,225 1000

Discount from 500 TL to 300 TL -,205 1000

Discount %20 þ%25 -,723 ,284

%40 Discount Fixed Price ,225 1000

Discount from 500 TL to 300 TL ,020 1000

Discount %20 þ%25 -,498 1000

Discount from 500 TL to 300 TL Fixed Price ,205 1000

%40 Discount -,020 1000

Discount %20 þ%25 -,518 1000

Discount %20 þ%25 Fixed Price ,723 ,284

%40 Discount ,498 1000

Discount from 500 TL to 300 TL ,518 1000

*: statistically significant at 0,05 level; **: statistically significant at 0,01 level; Bonferonni method was used adjustment for multiple comparisons.

Fig. 3. The interaction effect of scenario type and gender on perceived price attractiveness and purchase intention.

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5. Conclusion

Pricing is one of the most important marketing tools that can direct the feelings, perceptions and behaviours of the consumers. Therefore, consumers’ reactions to price promotion are important in terms of pricing. Because specific discount pattern in terms of price promotion scenarios for both cognitive and emotional perceptions of consumers is a vital element for the sustainability of products and companies. In this study, the effect of different specific discount pattern in terms of price promotion scenarios on perceived price attractiveness and purchase intention was analyzed, and some results were obtained. The first of the results obtained, price promotion scenarios significantly affect perceived price attractiveness and purchase intention. Regarding these specific discount pattern in terms of price promotion scenarios, the most favourable specific discount pattern in terms of price promotion scenario is the “discount from 500 TL to 300 TL” in terms of both perceived price attractiveness and purchase intention. The least approved scenario is the fixed price scenario. Regarding this result, it is recommended that businesses do not use fixed price method when pricing. Because it is thought that businesses should prefer a discounted price promotion method to reduce the perceived monetary sacrifices of consumers and increase the perceived value that consumers can obtain from the product (Chen et al., 1998: 357). When the whole sample was taken into consideration (when male and female were taken together), the scenarios that were manipulated (experimental scenarios) were not differentiated in terms of perceived price attractiveness and purchase intention. However, in terms of perceived price attractiveness, a significant difference was found between the scenario of “fixed price” and

“discount from 500 TL to 300 TL”. There was also a significant difference between the scenario of the “fixed price” and the “discount from 500 TL to 300 TL” and scenario of the “fixed price” and “20% þ25% discount”

in terms of purchase intention. When all these results are taken into consideration, the situation that should be suggested is the use of the scenario “discount from 500 TL to 300 TL” and the “20% þ25% discount”. However, with the results obtained, the socio-demographic structures of the consumers should also be taken into consideration.

For example, in this study, the gender variable has no significant effect on the intention to purchase. However, in terms of perceived price attractiveness, the gender variable was found to be an important variable to be considered. Accordingly, perceived price attractiveness has a significant perceptual difference according to gender. In terms of female, the scenario of the “discount from 500 TL to 300 TL” obtained the highest score and differed significantly from the scenarios of the “fixed price”, “40% discount” and “20% þ25% discount” (from all experimental scenarios). There is no significant difference between any scenario (Control and experimental scenarios included) in terms of male.

Male gave higher values than female in all other scenarios (fixed price, 40% discount and 20% þ25% discount scenario) except the discount from 500 TL to 300 TL scenario. The information obtained is important.

In this case, it can be thought that male gives more importance to the percentage price promotions. For both male and female, the price promotion scenario that affects the purchase intention most is the discount scenario from 500 TL to 300 TL.

5.1. Theoretical implication

This study contributes to the literature as few studies are examining the effect of specific discount patterns on perceived price attractiveness and purchase intention in terms of medium price. The first contribution of this study to the literature is that specific discount patterns affect consumers’ price perceptions and purchase intention. The second contribution of this study is that the gender variable has a significant effect on specific discount patterns in terms of price promotion. Gender socialization theory also expresses that gender has an important effect on individuals’ decisions and practices since males and females have different values and psychological characteristics (Calabrese et al.,

2016: 136). As a result, gender can affect consumers’ beliefs, attitudes, and decisions (Vicente-Molina et al., 2018: 91). The findings of the study also support the gender socialization theory. In terms of specific discount patterns, price promotions differ significantly by gender. There- fore, it can be said that gender socialization theory is useful in understanding consumer behaviour in terms of pricing and price promotion. According to Kinard et al. (2013), consumers make subjective price evaluations based on the comparison between market price and reference price. When consumers do not take any action regarding price promotions, the price promotions applied are in the region of indifference of the consumers and are not noticed by the consumers (Kinard et al., 2013: 88–89). Adaptation level theory also refers to the perception and comparison of price stimuli in the context of past and present experience. If the price offered through specific discount patterns is outside a region of the indifference of consumers, then consumers are actively exposed to price stimuli (Kinard et al., 2013: 88–89). When looking at the interactions of specific discount patterns and gender, it is seen that the net price discount pattern affects consumers more. Also, it is thought that the perceptions of specific discount patterns for females are more likely to be located outside the region of the indifference of consumers. The rational choice theory says that consumers make their own decisions in full rationality to maximize their benefits (Manzini and Mariotti, 2009: 379). However, Simon (1955, 1956) proposed the concept of bounded rationality and said that the decision-makers did not have perfectly processed information when making their choices. Also, Simon (1955, 1956) stated that decision-makers make a limited rational decision in case of limited time, knowledge and computational power (cited by Mueller and de Haan, 2009: 1073). In this study, it can be stated that perceptions of specific discount patterns can be applied according to the bounded rationality approach. However, when looking at the interaction between gender and specific discount patterns, it is thought that in terms of price promotion male behaviours can be explained more with rational choice theory and females’ behaviour with bounded rationality theory.

5.2. Managerial implication

This study provides important information about whether specific discount patterns in price promotion is necessary for retailers and businesses, and if so, which type of specific discount patterns in price promotion is more favoured by the consumer, perceived as attractive and affects purchase intention. Given the current study findings, four implications are presented. These implications are thought to be available more for businesses targeting young people. First implication, price promotion scenarios are critical determinants of perceived price attractiveness and purchase intention. It is recommended to apply the net discount method for perceived price attractiveness and net discount and additive percentage discount (%þ%) methods for purchase intention. Therefore, it is recommended that businesses or retailers keep the product price high in advertisements for the product and then ensure that the consumer perceives it as the actual price. Also, it is considered that it is an important strategy for businesses or retailers to gain more benefits as a result of discounts on the real price perceived by consumers (Chen et al., 1998: 359). However, if this strategy is implemented for retailers, a significant problem may arise. The problem is that there are large amounts of price reductions. Thus, high price reductions have a positive impact on present-oriented customers, but not for future-oriented customers (Mukherjee et al., 2017: 208). Therefore, price promotion should be done carefully. The strategy to be applied here is to keep the discount rate or amount low while applying for price promotion. In other words, the low amount of the discount allows consumers to see the discount that likely to represent bona fide.

Otherwise, the discounts may create a perception that prices are inflated (Chen et al., 1998: 356). The second finding is that the gender variable is taken into consideration when price promotion is performed. However, when considering gender, businesses need to decide what structure they