Consumers, Promotions in Retail and Research
Jha co-authors article for Harvard Business Review on precision discounts and effects on sales
Retailers might think that bigger discounts attract more customers; however new research suggests that’s not always true. Sometimes, a smaller discount that looks more precise can make people think the deal won’t last long, and they’ll buy more. In a series of nine experimental studies involving around 2,000 individuals considering online or retail purchases of a variety of products, the authors found precise discount depths, the difference between the original and sale price, can increase purchase intentions by up to 21%.1
Dr. Subhash Jha, associate professor in Marketing Supply Management, recently coauthored an article in the Harvard Business Review titled “Research: Smaller, More Precise Discounts Could Increase Your Sales”. Jha co-authored the article with Dinesh Gauri, professor and Walmart chair in the department of marketing at the Sam M. Walton College of Business at the University of Arkansas; Abhijit Guha, associate professor in the department of marketing at the Darla Moore School of Business at the University of South Carolina; and Abhijit Biswas, Kmart endowed chair and professor of marketing, chair of the department of marketing, and distinguished faculty fellow at the Mike Ilitch School of Business, Wayne State University.
Read Harvard Business Review article >>
Contact Jha at sjha1@memphis.edu with questions on the research.