The Role of Consumer Inferences About Price Discounts in Influencing Switching Behavior

Rohini Ahluwalia, University of Minnesota
Beomjoon Choi, University of Kansas

The Role of Consumer Inferences About Price Discounts in Influencing Switching Behavior

 

 

 

Beomjoon Choi   University of Kansas

Rohini Ahluwalia    University of Minnesota

 

 

 

SHORT ABSTRACT

 

Past research in the area of price discounts oriented sales promotions has generated a rich, but diverse and mixed body of literature. Furthermore, recent research suggests that consumers are likely to generate a variety of inferences in response to promotional offers, ranging from economic to hedonic and informational. This research examines the role of consumer’s preference strength and product category risk in influencing the nature (consumer benefits vs. marketer tactics focused) as well as valence (negative vs. positive) of the inferences generated by consumers in response to price discounts offered by competitor brands. This research argues and empirically demonstrates the role of these inferences in influencing the brand switching likelihood.
[ to cite ]:
Rohini Ahluwalia and Beomjoon Choi (2006) ,"The Role of Consumer Inferences About Price Discounts in Influencing Switching Behavior", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 252-253.