{"id":409,"date":"2015-06-24T10:42:37","date_gmt":"2015-06-24T10:42:37","guid":{"rendered":"http:\/\/researchblog.iimk.ac.in\/?p=409"},"modified":"2016-06-15T05:51:00","modified_gmt":"2016-06-15T05:51:00","slug":"impact-of-discounts-on-customer-loyalty-in-e-commerce","status":"publish","type":"post","link":"https:\/\/researchblog.iimk.ac.in\/?p=409","title":{"rendered":"IMPACT OF DISCOUNTS ON CUSTOMER LOYALTY IN E-COMMERCE"},"content":{"rendered":"

By:<\/p>\n

\"295\"<\/a>\"218\"<\/a>\"206\"<\/a>\"182\"<\/a>
\nAngara Saxena \u00a0 \u00a0 \u00a0\u00a0 Shelly Mehan\u00a0 \u00a0\u00a0 \u00a0 Pathsamatla Sraavya\u00a0\u00a0\u00a0\u00a0\u00a0 Ankit Abhishek<\/strong><\/p>\n

#Don\u2019t miss this chance \u2026..<\/span>EXTRA<\/span> 30% <\/span>Off<\/span> on one\u00a0 lakh+ styles<\/span><\/span><\/strong><\/p>\n

\n

Logon to \u2026..\u00a0 As soon as this message pops on the screen of any regular e-shopper they would search for the range of products they could add to their e-cart. However, a simple discount requires a lot of analysis behind it. The focus group discussion that have been conducted for different e-fans of specific websites gave an insight into the different possible variations. The uniqueness of this research is it tests the effect of discounts on the sales volume of the product, brand perception and thus growing tendencies towards shifting brands and decreasing brand loyalty and develops a hypothesis based on them. Sales promotion is an important and frequently used marketing tool to influence the consumers\u2019 purchase intentions directly. Studies have suggested that consumers make inferences out of all kinds of pricing and promotional strategies adopted by companies, whether they are economic, informational or hedonic. The study has been based on the product categories.<\/p>\n

<\/p>\n

It has been inferred that the word \u2018free\u2019 is used in many ways with taglines such as \u2018buy one get one free\u2019 by companies as the concept of FREE takes the effect on consumer behaviour and attitude to a different level altogether. It has been suggested that this is due to the certainty effect. Customer\u2019s who might not be planning to buy a specific product might also access discount based on the attractiveness of the discount offer. Regret is the driver here. The risk carries a buyer\u2019s regret whereas discounted things let the regret not come to people because they are in turn getting some tangible benefits out of it. The regret of overvaluing is also not of a concern. Along with this people are generally product specific when it comes to simple terms of consumerism. Thus rather than pondering over the website they are loyal about they generally tend to access the offer if the website offering it trustworthy or a popular one. However, if the website is namesake one, despite of high discount in the offer customers assume they would get a Vim bar in place of any product they would order. This is due to the conformity bias as the psychology studies define it to be.<\/p>\n

\n

One other pattern of shedding customer loyalty has been observed wherein customers don\u2019t dare to take risk in case of high end products. In fact, more the discount greater the suspicion. So, in case of electronic gadgets or the luxurious segment of products customers are unwilling to shift despite the splash of discount offered.<\/p>\n

In reality, the transition of ideology from a pop up on mobile phone to the categorization and sorting of products happens subconsciously. This is where analysis through focus groups have played their role to establish a hypothetical model.<\/p>\n

The authors are PGP students at IIM Kozhikode.\u00a0 The work was done under the supervision of Prof. Naveen Amblee, Assistant Professor of Marketing at IIM Kozhikode.\u00a0 Views expressed here are their personal views.\u00a0 <\/em><\/em><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By: Angara Saxena \u00a0 \u00a0 \u00a0\u00a0 Shelly Mehan\u00a0 \u00a0\u00a0 \u00a0 Pathsamatla Sraavya\u00a0\u00a0\u00a0\u00a0\u00a0 Ankit Abhishek #Don\u2019t miss this chance \u2026..EXTRA 30% Off on one\u00a0 lakh+ styles Logon to \u2026..\u00a0 As soon as this message pops on the screen of any regular e-shopper they would search for the range of products they could add to their e-cart. However, a simple discount requires …<\/span>Read more »<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"aside","meta":{"footnotes":""},"categories":[104],"tags":[],"class_list":["post-409","post","type-post","status-publish","format-aside","hentry","category-articles","post_format-post-format-aside"],"_links":{"self":[{"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=\/wp\/v2\/posts\/409"}],"collection":[{"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=409"}],"version-history":[{"count":16,"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=\/wp\/v2\/posts\/409\/revisions"}],"predecessor-version":[{"id":607,"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=\/wp\/v2\/posts\/409\/revisions\/607"}],"wp:attachment":[{"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/researchblog.iimk.ac.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}