Influence of Discounts and Offers on Consumer Buying Behaviour
Author: Priyanka Sampat Prajapat
Literature Review
1. Discounts
Blattberg and Neslin (1990) analyzed the impact of price promotions on consumer purchasing patterns and found that temporary discounts significantly increase short-term sales by encouraging stockpiling and brand switching. Consumers perceive discounts as monetary savings, which reduce the perceived financial risk of purchase. However, frequent promotions may weaken long-term brand loyalty, as buyers become more deal-oriented rather than brand-oriented. The study highlights that discounts are powerful tools for immediate sales growth but require strategic timing to avoid negative brand perception.
2. Promotions
Kotler and Keller (2016) discussed sales promotions as short-term incentives designed to stimulate quicker or greater purchase of products. Promotional tools such as coupons, cashback, and limited-time offers create urgency and influence impulse buying behavior. Consumers often associate promotions with added value, which enhances purchase intention. The authors emphasize that effective promotional strategies can attract new customers while retaining existing ones when aligned with brand positioning.
3. Price Perception
Monroe (2003) examined how consumers interpret price information and concluded that perceived price fairness strongly affects buying decisions. Discounts alter reference prices in the consumer’s mind, making the reduced price appear more attractive. Buyers evaluate offers by comparing original and discounted prices, which increases perceived value. The study suggests that transparent pricing strategies strengthen trust and positively influence purchase decisions.
4. Impulse
Rook and Fisher (1995) explored impulse buying behavior and found that promotional cues, such as discounts and limited-time deals, trigger spontaneous purchases. Emotional excitement and fear of missing out encourage consumers to act quickly without extensive evaluation. The presence of promotional signage and price reductions increases unplanned buying. The research indicates that offers significantly stimulate impulsive consumer responses in retail settings.
5. Coupons
Bawa and Shoemaker (1987) studied coupon redemption behavior and observed that coupons effectively encourage trial purchases and repeat buying. Price-sensitive consumers are more likely to respond to coupons, perceiving them as direct savings. Coupons also enhance brand awareness and influence brand switching. The findings demonstrate that coupon-based offers are impactful in attracting new customers while maintaining existing ones.
6. Loyalty
Sharp and Sharp (1997) investigated the relationship between promotions and brand loyalty and found that frequent discounts increase purchase frequency but do not necessarily build long-term loyalty. Consumers attracted by price deals may switch brands once better offers appear. Sustainable loyalty develops when promotions are combined with product quality and brand value. The study emphasizes balancing promotional intensity with relationship-building strategies.
7. Online
Grewal, Roggeveen, and Nordfält (2017) examined promotional strategies in online retailing and concluded that digital discounts, flash sales, and personalized offers strongly influence online buying behavior. Limited-time deals create urgency and increase website traffic and conversion rates. Consumers respond positively to personalized discounts tailored to their preferences. The research highlights the growing importance of online promotional tactics in shaping purchase behavior.
8. Value
Dodds, Monroe, and Grewal (1991) analyzed the relationship between price, quality, and perceived value. Discounts enhance perceived value when consumers believe they are receiving high quality at a lower price. Purchase intention increases when perceived value outweighs perceived sacrifice. The study shows that effective discount strategies improve consumer evaluation of products and encourage buying decisions.
9. Satisfaction
Anderson and Sullivan (1993) examined how pricing strategies influence customer satisfaction and repurchase intention. Fair and meaningful discounts enhance satisfaction levels, especially when consumers feel they gained real savings. Positive promotional experiences strengthen trust and future buying behavior. The research indicates that well-structured offers contribute to both immediate sales and long-term customer relationships.
10. Urgency
Inman, Peter, and Raghubir (1997) explored how promotional signals create urgency and found that limited-period discounts increase perceived scarcity. Consumers interpret time-bound offers as opportunities that must be acted upon quickly. This urgency reduces decision-making time and increases purchase likelihood. The findings demonstrate that scarcity-driven offers significantly influence consumer buying behaviour.
Conclusion
The reviewed studies collectively demonstrate that discounts and offers significantly influence consumer buying behaviour by enhancing perceived value, creating urgency, stimulating impulse purchases, and encouraging trial buying. While promotions effectively boost short-term sales and attract price-sensitive consumers, excessive reliance on discounts may reduce long-term brand loyalty. Online and personalized offers further strengthen purchase intention in the digital marketplace. Therefore, businesses should strategically design discount and promotional strategies that balance immediate sales growth with sustained customer satisfaction and loyalty.
References
Blattberg, R. C., & Neslin, S. A. (1990). Sales Promotion: Concepts, Methods, and Strategies. Englewood Cliffs, NJ: Prentice Hall.
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson Education.
Monroe, K. B. (2003). Pricing: Making Profitable Decisions (3rd ed.). McGraw-Hill.
Rook, D. W., & Fisher, R. J. (1995). Normative influences on impulse buying behavior. Journal of Consumer Research, 22(3), 305–313.
Bawa, K., & Shoemaker, R. W. (1987). The coupon-prone consumer: Some findings based on purchase behavior across product classes. Journal of Marketing, 51(4), 99-110.
Sharp, B., & Sharp, A. (1997). Loyalty programs and their impact on repeat-purchase loyalty patterns. International Journal of Research in Marketing, 14(5), 473–486.
Grewal, D., Roggeveen, A. L., & Nordfält, J. (2017). The future of retailing. Journal of Retailing, 93(1), 1–6.
Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers’ product evaluations. Journal of Marketing Research, 28(3), 307–319.
Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125–143.
Inman, J. J., Peter, A. C., & Raghubir, P. (1997). Framing the deal: The role of restrictions in accentuating deal value. Journal of Consumer Research, 24(1), 68–79.