Why (And When) Are Uncertain Price Promotions More Effective Than Equivalent Sure Discounts?

Are uncertain price promotions more effective than sure discounts of equal expected value? Previous research says “yes,” but we find that “it depends.” In four studies (N = 6,713), consumers are more likely to prefer an uncertain price promotion to a sure discount only when the sure discount feels small.


Celia Gaertig and Joseph P. Simmons (2020) ,"Why (And When) Are Uncertain Price Promotions More Effective Than Equivalent Sure Discounts?", in NA - Advances in Consumer Research Volume 48, eds. Jennifer Argo, Tina M. Lowrey, and Hope Jensen Schau, Duluth, MN : Association for Consumer Research, Pages: 886-890.


Celia Gaertig, University of Chicago, USA
Joseph P. Simmons, University of Pennsylvania, USA


NA - Advances in Consumer Research Volume 48 | 2020

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