Gambling For a Discount: Preferring Discount Per Item to Discount Per Purchase?

Bernadette Kamleitner, University of London, UK
Mandeep K. Dhami, University of Cambridge, UK
David R. Mandel, Defence R & D Canada, Canada
Risky discounts where a consumer’s specific discount is determined by chance (e.g., “scratch & save” cards) have hardly been addressed in the promotion literature. In three studies, we explored whether consumers prefer to receive such discounts per purchase or per item. These options differ in several respects even though they do not differ with regard to expected value. In all studies, participants preferred per-item rather than per-purchase discounts. We explore reasons for per-item discount preferences and discuss practical implications.
[ to cite ]:
Bernadette Kamleitner, Mandeep K. Dhami, and David R. Mandel (2009) ,"Gambling For a Discount: Preferring Discount Per Item to Discount Per Purchase?", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 566-567.