“18% Off the Original Price Then Another 12% Off” Or “12% Off Then 18% Off”: How Multiple Discounts Influence Consumer Evaluations

Rajesh Bagchi, Virginia Tech, USA
Derick Davis, University of Miami, USA
We investigate how consumers evaluate offerings with multiple percentage changes (e.g., take 18% off the price, followed by 12%; 18%-12%). We find when the two percentages are presented together, a large-small (18%-12%) order is judged larger than a small-large order (12%-18%). This pattern reverses when the percentages are encountered sequentially.
[ to cite ]:
Rajesh Bagchi and Derick Davis (2015) ,"“18% Off the Original Price Then Another 12% Off” Or “12% Off Then 18% Off”: How Multiple Discounts Influence Consumer Evaluations", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 282-286.