Deal-prone consumers' response to promotion: The effects of relative and absolute promotion value

Abstract

Increased use of promotions that target different market segments makes the study of consumer characteristics associated with the response to promotions more noteworthy. This article assesses the effect of a common segmentation criterion, consumer deal proneness, on consumers' responses to promotions of more and less relative and absolute value. The results of a pair of experiments indicate that deal-prone consumers are sensitive to the value of a promotion relative to other available promotions only in a condition of high absolute dollar savings. The findings help integrate conflicting views of deal proneness into a framework in which deal proneness serves as a heuristic to limit or heighten processing of promotion-related information depending on the promotion environment. © 2005 Wiley Periodicals, Inc.

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