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

30.03.2005


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:
http://www.uchicago.edu

More articles from Studies and Analyses:

nachricht Smart Data Transformation – Surfing the Big Wave
02.12.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

nachricht Climate change could outpace EPA Lake Champlain protections
18.11.2016 | University of Vermont

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: Electron highway inside crystal

Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.

Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

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

14.10.2016 | Event News

 
Latest News

Researchers identify potentially druggable mutant p53 proteins that promote cancer growth

09.12.2016 | Life Sciences

Scientists produce a new roadmap for guiding development & conservation in the Amazon

09.12.2016 | Ecology, The Environment and Conservation

Satellites, airport visibility readings shed light on troops' exposure to air pollution

09.12.2016 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>