Abstract
This research sheds light on the theoretical mechanism behind consumer discounting of discounts and extends it to the online daily deals context. Based on advertising and behavioral pricing research, we develop and empirically test a conceptual model of the effects of discount level on consumer perceptions of discount credibility, the extent of discounting of discounts, and change in purchase intentions for online daily deal promotions as compared with price promotions offered directly by online stores. The findings offer important managerial recommendations for retailers and daily deal managers with respect to utilizing direct online price promotions and daily deal promotions.
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