Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:


New study into how consumers weigh the costs and benefits of promotions and rewards


We’ve all been there. At the car sales lot, being simultaneously wooed by big-numbered rebates rolling off the tongue of a fast-talking salesperson. The experience is both tantalizing and worrisome. Promotions are so common in the marketplace that they are basically a ubiquitous part of our buying experience. An article in the March 2005 issue of the Journal of Consumer Research taps into this marketplace phenomenon, explaining how consumers react to and are affected by promotions. It seems that while promotions can be a good thing, consumers also construe them negatively as well.

"Marketing promotions and incentives can be a double-edged sword. On the one hand, as prior research and common wisdom suggest, consumers are enticed by the proffered benefits and rewards. On the other hand, this article assumes that consumers may perceive the incentives as intended to influence their consumption behavior and limit their brand choice. Such threats to consumers’ perceived freedom arouse promotion reactance," explains author Ran Kivetz (Columbia University School of Business).

While many previous studies have examined promotions, Kivetz asserts this is the first wholesale study of how consumers react to promotions, particularly their skepticism of incentives.

"Despite voluminous research on promotions, the basic notion that they can evoke reactance has not yet been studied," writes Kivetz. "It is further proposed that consumers reduce such reactance and reaffirm their autonomy by selecting promotions and incentives that foster a consistency between the reward and the reinforced behavior."

Carrie Olivia Adams | EurekAlert!
Further information:

More articles from Studies and Analyses:

nachricht Diagnoses: When Are Several Opinions Better Than One?
19.07.2016 | Max-Planck-Institut für Bildungsforschung

nachricht High in calories and low in nutrients when adolescents share pictures of food online
07.04.2016 | University of Gothenburg

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Light-driven atomic rotations excite magnetic waves

Terahertz excitation of selected crystal vibrations leads to an effective magnetic field that drives coherent spin motion

Controlling functional properties by light is one of the grand goals in modern condensed matter physics and materials science. A new study now demonstrates how...

Im Focus: New 3-D wiring technique brings scalable quantum computers closer to reality

Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.

"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...

Im Focus: Scientists develop a semiconductor nanocomposite material that moves in response to light

In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.

A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...

Im Focus: Diamonds aren't forever: Sandia, Harvard team create first quantum computer bridge

By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.

"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...

Im Focus: New Products - Highlights of COMPAMED 2016

COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.

In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...

All Focus news of the innovation-report >>>



Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

Agricultural Trade Developments and Potentials in Central Asia and the South Caucasus

14.10.2016 | Event News

World Health Summit – Day Three: A Call to Action

12.10.2016 | Event News

Latest News

Enormous dome in central Andes driven by huge magma body beneath it

25.10.2016 | Earth Sciences

First time-lapse footage of cell activity during limb regeneration

25.10.2016 | Life Sciences

Deep down fracking wells, microbial communities thrive

25.10.2016 | Earth Sciences

More VideoLinks >>>