Buy-one-get-one-free deals attract more attention than percentage deals

Open Access
Authors
Publication date 04-2020
Journal Journal of Business Research
Volume | Issue number 111
Pages (from-to) 128-134
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
  • Faculty of Economics and Business (FEB)
Abstract

Promotion deals and price reductions are common strategies retailers use to attract consumers. We investigate which of two common types of deals better captures consumers’ attention. By tracing eye movements, we examine participants’ attention allocation when deciding between “buy-one-get-one free” (BOGO) deals versus deals that offer an equivalent price reduction. Results show that people prefer BOGO deals, and they tend to choose them over price reductions even when the deals are equal in terms of net value. The preference is amplified when the discount is relatively high: In these cases, BOGO deals attract more attention than percentage deals. Overall, our findings can help retailers develop promotional strategies to capture potential consumers’ attention in online commerce. At the same time, our results warn consumers to better evaluate their options and not be lured by the first BOGO deal that captures their attention, as it might not be the best deal available.

Document type Article
Note H2020 European Research Council. Grant Number: ERC‐StG‐ 637915. - With supplementary data.
Language English
Published at https://doi.org/10.1016/j.jbusres.2019.02.070
Other links https://www.scopus.com/pages/publications/85062671999
Downloads
1-s2.0-S0148296319301705-main (Final published version)
Supplementary materials
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