What Makes Deal Of The Day Promotions Really Effective?

1480 Words May 24th, 2015 6 Pages
Research Design

What makes Deal-of-the-Day Promotions Really Effective?
The Interplay of Discount and Time Constraint with Product Type

Study 1: The Influence of Different Product Types (Hedonic vs. Utilitarian) on the Promotional Effectiveness of Discount Level.

This study tests the Hypothesis 1 mentioned above regarding how product type (hedonic vs. utilitarian) moderates the positive influence of discount level on promotional effectiveness, such that the effect is stronger for utilitarian than for hedonic products.

Pretesting of measures and questionnaire

A pre-test is conducted in a retail shop where sells functional & scented candles. We generate a convenience sample from 50 real customers as respondents regarding their perceptions towards candles. The questionnaire offers various options for respondents to express their preference for candle brands, functions, flavours, scents, prices and purchase experiences and frequencies etc. The results from pre-test are able to help generate the following experiment design. In addition, the valuable feedbacks from consumers help adjust the wording of the questions and the survey layout. (Mattila & Wirtz 2001).

Method

A 2 (product type: [bug repellent candle] vs. [scented candle]) × 4 (discount level: [full price vs. [25%] vs. [50%] vs. [75% discount offered]] design is used in this study. Bug repellent candle and scented candle represent utilitarian goods and hedonic goods representatively. As prior study indicates…

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