Consideration of an expected future deal in assessing the value of a present deal: Forward-looking bargain shopping

Abstract

Hunting for bargains has long been an important aspect of shopping behavior. One of the distinctive characteristics of bargain shopping is forward-looking price expectation, where one discount offer is evaluated in relation to another deeper discount anticipated in the future. Two experimental studies examined potentially competing effects of the two discounts over different timing points. Transaction value and purchase intention for the present discount may be affected not only by its discount depth but also by the awareness of the future discount. The negative effect of the future discount could substantially offset the positive perception toward the present deal. On the other hand, the future discount expectation does not appear to lower the perception of acquisition for the present discount. Effects of the future discount were investigated in terms of discount depth, product availability, and discount timing.