Consumer evaluations of bonus packs offered with price discounts

Abstract

PurposeThe purpose of this article is to assess consumer evaluations of bonus packs offered with price discounts.Design/methodology/approachFour laboratory experiments and a content analysis were conducted.FindingsThe opportunity to obtain a price discount was available for approximately 25 per cent of the bonus packs found in a content analysis. Consumers evaluated an offer containing a low bonus amount and a high price discount more positively than an offer containing a high bonus amount and a low price discount, despite both offers providing a similar underlying price per unit. Moreover, consumer evaluations of a bonus pack can be enhanced by providing a price discount rather than offering it at the regular price.Research limitations/implicationsFuture research could examine consumer reactions to bonus packs offered with discounts contingent on obtaining multiple quantities (e.g. BOGO; a multiple-unit price providing a lower price per unit than the single unit’s price) to determine whether the results of the present research extend to these situations.Practical implicationsManufacturers and retailers can evoke more positive consumer reactions to a bonus pack offered with a price discount if specifying a high amount for the latter rather than the former (if high amounts cannot be specified for both). It is possible for retailers to enhance consumer evaluations of a bonus pack by providing a price discount.Originality/valueThis research is the first to examine consumer evaluations of promotional offers containing both a bonus pack and a price discount.