The Effect of Sales Promotions on the Size and Composition of the Shopping Basket: Regulatory Compatibility from Framing and Temporal Restrictions

Abstract

Most literature on sales promotions focuses on responses to the promoted brand. Across two experimental studies and one field study, the authors examine how sales promotions may affect the size and composition of the overall shopping basket. The authors show that the framing of the savings message on sales promotions (e.g., “Save $x” versus “Get $x Off”), the expiration date restriction cue (immediate versus future expiration), and the familiarity of brands (well-known versus less familiar) are independent primes of regulatory focus. Furthermore, such cues, when compatible with one another or with a prior regulatory focus, lead to more unrelated purchases in the store. The authors discuss the findings in the context of theory on regulatory relevance and mind-sets, and they posit managerial implications for the design of sales promotions and store positioning.