Digitalredemptionofcoupons:
satisfyinganddissatisfying
effectsofpromotioncodes
RichardL.Oliver
ProfessorofManagement,Owen SchoolofManagement,Vanderbilt
University,Nashville,Tennessee,USA
MikhaelShor
AssistantProfessorofEconomics,OwenGraduateSchoolof
Management,VanderbiltUniversity,Nashville,Tennessee,USA
Keywords Onlinetransactionprocessing,Marketsegmentation,Promotionalcoupons,
Pricing,Electroniccommerce
Abstract Coupons,intheformof``promotioncodes’’,arenowamainstayoftheonline
shoppingexperience,butonlinecouponredemptiondifferssubstantivelyfromthatin
traditionalretailing.Offlineredemptionofcouponsiscustomer-initiatedwhileInternet
shoppersareusuallypromptedtoenteracodetowardstheconclusionofthecheckout
process.Thispromptingmayinfluenceshopperperceptionsandbehaviorssuchas
shoppingcartabandonment.Resultsshowedstrongnegativeeffectsonpricefairness,
satisfaction,andpurchasecompletioninthecode-absentgroupandpositiveeffectson
fairnessandsatisfactioninthecode-presentgroup.Presentsimplicationsforeffective
marketsegmentationthroughtheuseofonlinecouponcodes.
Fewthingsstirupaconsumerrevoltquickerthanthenotionthatsomeoneelseis
gettingabetterdeal(Streitfield,2000).
TheadventofInternetshoppinghasresultedinanewformofsales
promotion.Thenearlyubiquitouscouponhasbeentransformedintoadigital
entitywherebyshoppersareoftenpromptedto``enterapromotion code’’
duringthecheckoutprocess.Unlikegrocerystore``plusshopper’’orVIC
(veryimportantcustomer)programs,promotioncodesarealmostinvariably
placedattheendoftheonlineshopping experiencewhenthetotalcharges
aredisplayed.Ifavalidcodeisentered,chargesareamendedtothereduced
price.Withthenotableexceptionofgrocerystores,mosttraditionalretailers
donotincorporatethequery``Doyouhaveacoupon?’’intothecheckout
process.Sincetheveryactofaskingmaycausesomeformofirritationon
thepartofthosewithoutthemeansofobtainingadiscount,coupon
redemptionistraditionallycustomer-initiated.Theabsenceofananalogous
freeformcheckoutprocessonlinehasledmostretailerstoincorporateafield
inwhichcustomerscanenteracodepriortofinalizinganorder.
Whilesubstantialattentionhasbeendevotedinthemarketingliteratureto
traditionalcouponsandtothedeliveryofcouponsonline(e.g.Fortin,2000),
theexponentialriseofonlinecommercenecessitatesconsiderationofthe
redemptionofcouponsinthisnewmedium.Anecdotalaccountsaboutsuch
promotioncodesfromonlineshoppersaremixed.Frequently,consumers
withoutthecodeandwithoutthemeanstogetonedonotcompletethe
purchase,aphenomenontermedtheshoppingcartabandonment problem.
Thismimicsthecasewherein-store (offline)shoppersfindcheckoutlines
inordinatelylongandthereforeexit,leavingthecartfullofgroceriesin
TheEmeraldResearch Registerforthisjournalisavailableat
http://www.emeraldinsight.com/researchregister
Thecurrentissueandfulltextarchiveofthisjournalisavailableat
http://www.emeraldinsight.com/1061-0421.htm
Theshoppingcart
abandonmentproblem
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003,pp.121-134,#MCBUPLIMITED,1061-0421,DOI10.1108/10610420310469805
121
Anexecutivesummaryfor
managersandexecutive
readerscanbefoundatthe
endofthisarticle
Change font size in fillable pdf form - Compress reduce PDF size in C#.net, ASP.NET, MVC, Ajax, WinForms, WPF
C# Code & .NET API to Compress & Decompress PDF Document
change page size pdf acrobat; change font size in pdf file
Change font size in fillable pdf form - VB.NET PDF File Compress Library: Compress reduce PDF size in vb.net, ASP.NET, MVC, Ajax, WinForms, WPF
VB.NET PDF Document Compression and Decompression Control SDK
change font size pdf fillable form; change font size pdf
place.Themotivationsforthesetwoanalogousbehaviorsarelikelytobe
quitedifferent,however.Inthecaseofthein-storeshopper,thefrustrationof
slowlines(orbeinginthewrongone)mayverywellbeaprimaryforce.In
onlineshopping,nowaitisexpectedashittingthe``Submit’’buttonpresents
theordertothevendoralmostinstantaneously.Theexplanationforonline
abandonment,then,mustbemorecomplex.
Estimatesoftherateofshoppingcartabandonmentrangefrom25percentto
75percent(Perman,2000),eachcosting theretaileranestimated
$175inlostrevenues.Whilemuchabandonment isakintobrowsing
(walkingthroughanumberofstoresatashoppingcenter),aBizRatesurvey
ofalmost10,000respondentsfoundthat32percentofabandonedcartswere
leftjustpriortofinalpurchaseconfirmation,oftenafterthecustomerhad
enteredbillinginformation(BizRate.com,2000).Suchfiguresareconfirmed
byindustryexecutives,oneboastingthatabandonmentattheinvoicepageis
``only 20percent’’(Mullins,2000,quotingM.McIntoshofEgghead.com).
Reasonsforabandonmentcitedbyconsumersincludehighshippingcosts,
comparisonshopping orpostponement ofpurchase,dissatisfactionwithsite
designordownload speed,andtrouble locatingdeliveryorcontact
information(e.g.GlobalMilleniaMarketing,2002).
Mostofthesereasonscitedbyconsumersare``rational’’inthesensethatthey
relatetocosts,irritation,uncertainty,orsearchactivities.Wepropose that
thereexistothermotivationsforcartabandonmentthatarelessaccessibleto
theconsumer,thoseinthepsychologicaldomain.Specifically,weexplorethe
possibilitythatonlineexitingmayalsobebasedonaperceivedinequityor
injusticeoverthefactthatothersmayhaveapromotioncodewhilethecurrent
shopperdoesnot,assuggestedbytheintroductoryquote.Toaneconomist,
thisdisparatepossession ofcouponsmaybeperceivedaseffectiveprice
discriminationbuttoanappliedpsychologist,considerationsofexpected
dissatisfactionarealsorelevant.Ashopperwhoproceedstocompletethesale
mayneverknowtheamountofsavingsforgonewithoutthecode,thenumber
ofotherconsumersthatfortuitouslyhadthecode,orthemannerinwhichsuch
codesareobtainedorparceledout.
Intheofflineworld,onegenerallyobtainscouponsbyscouringlocal
newspapersandunsolicitedmail.Intheonlineworld,searchismanyorders
ofmagnitude moreefficient.Beyondnewspapers,directmail,andother
establishedcoupondeliveryvehiclestraditionallycontrolledbytheissuing
companies,manyWebsitesarenowdevotedtolocatingonlinecoupons.
Theserepositoriesareindependentofthefirmswhose promotionsthey
advertise,andmanyfeaturecouponlistingsupdateddailyandforumsfor
userstoexchangeinformationonnewpromotions.Forexample,enteringthe
searchterm``1,800flowerscoupon’’intoGoogle,apopularInternetsearch
engine,locatesthousandsofsitesofferingcouponcodesforthepopular
florist.Examiningthesearchresults(Figure1suggeststhatoneneednot
evenvisitthecouponsitesasthecodesareclearlyvisibleinthesummary
providedbythesearchengine.Unliketraditionalcoupons,thetimecosts
involvedinsearchingforsuchpromotions,andtheveryknowledgeoftheir
existence,varygreatlywithWebknowledge.
Forthosewithoutsuchknowledge(and,inthepresentcase,withnomeansto
search),wepositthatnegative misgivingsandtheattendantangeroverthe
inequityperceivedarealsofactorsthatmaypromptcartabandonment.In
offlineenvironments,consumersfeelliketheyhaveequalaccesstocoupons
andarecomfortablenothavingcouponsbecausetheyknowthattheysimply
chosenottoinvesttheeffortinclipping,storing,andreviewingthemfor
Muchabandonmentisakin
tobrowsing
ManyWebsitesare
devotedtolocatingonline
coupons
122
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
C# PDF Field Edit Library: insert, delete, update pdf form field
PDF form creator supports to create fillable PDF form in C# Able to add text field to specified PDF file position in C# Support to change font size in PDF form.
change paper size pdf; change paper size in pdf document
C# Create PDF from OpenOffice to convert odt, odp files to PDF in
An advanced .NET control to change ODT, ODS, ODP forms to fillable PDF RasterEdge. Imaging.Font.dll. zoomValue, The magnification of the original PDF page size.
change font size pdf document; change font size in pdf form
purchase.However,inonlineenvironments,thecodeequivalentofcoupons
isamysteryasmanyshoppersgenerallydonotknowhowtogetthem±so
codesare``unfair’’±andtheirveryexistencedeterspurchase.
Weapproachthisphenomenonfromtheperspectiveoftheconsumer
wherebywehypothesize thatuse ofpromotioncodescanhave
countervailingeffectsonthefirm’scustomerbase.Forthosewhohavea
code,itcanbesatisfyingornotdissatisfyingdependingonthedegreeto
whichthecustomerexpectsacode.The greaterthesurprise ofreceivinga
code,themoresatisfyingcodeprovision is.Alternatively,thegreaterthe
surpriseofcodeavailabilityandnothavingoneimpliesmoredissatisfaction
andpurchase abandonment.Thus,online storesmaybeturningaway
customersunwittinglythroughtheuseofcodes.
Arelatedissue concernsthepresentationoftheinputfieldwhenthe
consumerisaskedtoprovidethecode.Popularretailsitesvaryfromasimple
fieldprecededwitha``couponcode:’’prompttoexplicitquestions(``Doyou
haveacouponcode?’’)whichmayservetofocusattentionforacoupon-less
customeronthefactthat(she)hecannotusethisdiscount.Sitesalsovaryon
thecodephrasingused,includingthemostcommon``promotioncode,’’the
lesscommonbutmoreconsumer-understandable ``couponcode,’’aswellas
``discountcode,’’``offercode,’’and``claimcode,’’amongothers.Asample
ofthesepresentationsisprovidedinTableI.Allofthesephrasesrefertothe
practiceofofferingapricereduction.Thephrase``discount,’’however,isthe
mostdirectofthethreeintermsofsemanticmeaning.Allformsofusageof
theterm``discount,’’including``discountstore,’’``discounted
merchandise,’’and``bigpricediscounts’’havebeeninthesalesjargonfor
decades.Notethat,generally,adiscountimpliesaglobal pricereduction
whileacoupondecreasespriceonlyforselectconsumers.Wetesttheeffects
ofpromptingforthepromotioncodewithanexplicitquestiontothe
consumer,aswellastestingforthesemanticeffectsoftheuseoftheterms
``coupon,’’``promotion,’’and``discount.’’
Conceptualframeworkandhypotheses
Equity(anditspolaropposite,inequity)hasbeenshowntobea
fairlypotentdeterminantof(dis)satisfaction(Oliver,1997).Havingrootsin
theorganizationalbehaviorarea,ithasmigratedtotheconsumerliterature
(e.g.OliverandSwan,1989)andcontinuestobeafactorinsatisfaction,
particularlyasitpertainstofairpricing(MartinsandMonroe,1994;Ajzenet
al.,2000).Infact,expectationsoffairnessarelegitimatecomponentsofthe
Figure1.
Theperspectiveofthe
consumer
Equitycontinuestobea
factorinsatisfaction
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
123
C# PDF Text Box Edit Library: add, delete, update PDF text box in
Able to create a fillable and editable text box to PDF document in C#.NET class. Support to change font color in PDF text box. Ability to change text size in PDF
best compression pdf; pdf compression settings
C# Create PDF from Word Library to convert docx, doc to PDF in C#.
Change Word hyperlink to PDF hyperlink and bookmark. RasterEdge.Imaging.Font.dll. zoomValue, The magnification of the original PDF page size. 0.1f
pdf file compression; best pdf compressor
expectationsetconsumersbringtopurchasing(OliverandWiner,1987).
Thisisevidentinsome newformsofautodealershipsthatemphasize``no
haggle,oneprice’’shopping(e.g.Saturn,CARmax).
Equitycanbeseenessentiallyasafairnessconcept.Whiledifficultto
operationalize,consumersseemtohaveasenseofwhatitmeanswithoutthe
necessityofperformingcalculations(e.g.Campbell,1999).Thisphenomenonwas
demonstratedinOliverandSwan(1989)whereconsumersformedequity
judgmentsbasedonlyonperceptionsoftheirowninputsandoutcomes.
Generally,theirstudyshowedthatiftheconsumerfeelsthatthepurchasesituation
was``fair,’’satisfactionisenhancedanddissatisfactionisreduced.Wefocuson
theeffectsofcouponcodepromptsonconsumers’perceptionsofwhetherthe
priceisfairandtheeffectthismayhaveonotherpostpurchaseconcepts.
Wewouldpredictthatconsumerswhoarepromptedforacode(the
typicalcase)andwhoareprovidedwithone wouldperceivefairer
pricingandconsequentlybemoresatisfiedthanthosethatarenotprompted
withapromotioncodefield,aconditionweuseasacontrol.Additionally,
Posedasaquestion
Posedasastatement
``Coupon’’
Barnes&Noble
Dell
Usingacoupon?Enteryour
couponcodeandclick``Enter
Number’’
Couponentry
Entercouponnumber
Gap
HewlettPackard
Doyouhaveacoupon?
typeinyourcouponcode
gap.comcouponcode:ifyou
havereceived agap.comcoupon
code...enteritbelow
Others
SharperImage,Hertz,
PETsMART,BestBuy
``Discount’’
RunningManSoftware
Doyouhaveadiscountcode?
Enterithere
PerformanceMeasurementGroup
Doyouhaveadiscountcode?
Officedepot
Ifyouhaveanoffercodefora
specialdiscountorpromotion,
click heretoenterit
KMart
Entergiftcertificatesand
Discountcodes:
Enteryour... codeandclick
``Apply’’
``Promotion’’
Amazon
Doyouhaveagiftcertificate
orpromotionalclaimcode?
Entercode:
AmericanExpressBrokerage
Doyouhaveapromotioncode?
1-800-Flowers
Redeemyourspecialoffer
Enteryourpromotioncodefor
Specialoffers
Macys
Applyelectronic...promotions
enteryourpromotioncodeinthe
fieldbelow
Others
HamptonInn,Amtrak,
AnnTaylor
Other
CDNOW
HaveaCDNOWgiftcertificate?
Enterclaimcode
Victoria’sSecret
Ifyouhaveanoffercode,please
enterithere
Gateway
ReferralNumber/Code:
TableI.Samplephraseselectionforpromotingforacouponcodeatpopular
Internetretailers
124
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
C# Create PDF from PowerPoint Library to convert pptx, ppt to PDF
Convert multiple pages PowerPoint to fillable and editable PDF documents. RasterEdge.Imaging.Font.dll. zoomValue, The magnification of the original PDF page
pdf compress; acrobat compress pdf
C# Create PDF from Excel Library to convert xlsx, xls to PDF in C#
Create fillable and editable PDF documents from Excel in both .NET RasterEdge.Imaging. Font.dll. zoomValue, The magnification of the original PDF page size.
pdf change font size; pdf reduce file size
wewouldpredictthatthosenotpromptedwouldbemoresatisfiedthanthose
whoarepromptedandarenotprovidedwithone.Weextendthissatisfaction
analogytopurchasecompletion,futurepurchaseintentionand
recommendationtoothers.Thisleadsustothefollowinghypotheses:
H1a.Consumerspresentedwithacompletedcodefieldwillperceivegreater
pricefairness,satisfaction,intention,andpurchasecompletionthan
thoseinthecontrolgroup.
H1b.Consumerspresentedwithanemptycodefield(and,bythestudy
design,nomeanstoobtainone)willperceivelesspricefairness,
satisfaction,intention,andcompletionthanthoseinthecontrolgroup.
H1c.Whenthethreegroups(havecode,control,andnocode)areanalyzed
jointlyviaANOVA,thepredictedorderingofeffectswillbejointly
significantoverthedependent variableset.
Inaddition,wealsoaddasecondarypromptingeffect.Whenapromptis
used,specific verbiageisusedtodrawattentiontothecode field.Most
frequently,thisisphrasedas``Doyouhaveapromotion(orcouponor
discount)code?’’Alternatively,thefieldmaybesimplyprecededby``Offer
code:’’orsimilarlabels.Webelieve,further,thatthepromptingeffectwill
belesssalientthanthecode/nocodeeffect.Whenthecodeismissing,the
visibleemptycodefieldprecludesanystimulusambiguitytotheshopper.In
thenopromptcondition,itisnotevidentthataqueryismissing;the
respondentdoesnotseeanemptyqueryfield.Thus,thepromptingcondition
shouldnotdominate thecodeeffect.
Weholdtwocontradictoryviewsoftheeffectsofprompting.Ononehand,
promptingmaymakealleffectsmoresalient,amplifyingtheeffectofhaving(or
nothaving)acodeintheanticipateddirection,akintoanofflineretaileraskinga
customerforacouponwhenthecustomerhasone(areminder±whichisgood)
ordoesnot(areprimandofsorts±whichisbad),asalludedtointheintroduction.
However,theveryexistenceofafieldtoenteracode,absentaquery,will
likelybenotedbyallcustomers.Thus,notpromptingmaymakecustomers
believethatcoderedemptionis``mysterious.’’Thosereceivingthecodemay
believethattheyare``special’’insomesenseandmaybedelighted.Those
notreceivingthecodemayfeelthattheyaren’t``special’’andmaywonder
whyothersare±whyothersgetbettertreatment.Perhapstheproper
analogueintheofflineworldisstandinginlinewhenthecustomerinfrontof
yousurreptitiouslypassesacoupontotheclerk,whoacknowledgesthe
transactionwithawink.Thus,thelackofpromptingmayamplifytheeffects
becausetheconsumerwillquestionthemotivebehindthecodefieldforming
positive(havecode)andnegative(donot)inferences(cf.Campbell,1999).
H2a.Consumerspresentedwithapromptedcompleted(uncompleted)code
fieldwillperceivegreater(lesser)fairness,satisfaction,intention,and
purchasecompletion thanthoseintheunpromptedgroup.
H2b.Consumerspresentedwithanunprompted completed(uncompleted)
codefieldwillperceivegreater(lesser)fairness,satisfaction,intention,
andpurchasecompletion thanthoseinthepromptedgroup.
Asnoted,wehypothesize thatthecodeeffectwilldominatetheprompt
effect,butthattheadditionalpromptingeffectwillbemoderatedbythe
correctnessofH2aorH2b.
H2c.Whenthecodepossession andpromptingeffectsarecrossedand
comparedtothecontrolgroupsonthedependentvariableset,the
Asecondaryprompting
effect
Customersreceivingthe
codemaybelievethatthey
are‘‘special’’
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
125
amplifyingeffectsofpromptingwillresultinthefollowingordering
underH2a:(1±highest)promptedhave code,(2)unpromptedhave
code,(3)control,(4)unpromptednocode,(5)promptednocode,or
alternativelyunderH2b:(1)unpromptedhavecode,(2)promptedhave
code,(3)control,(4)promptednocode,(5)unpromptednocode.
Lastly,specifichypothesesareproposedtoaddressthephraseusedforthe
pricereduction.Wepredictthat``promotion’’willresultingreaterfairness,
satisfaction,completionandintentionwhile``discount’’willresultinthe
lowestvalues.``Coupon’’ishypothesizedtofallbetweenthesetwo
conditions.Chenetal.(1998)comparedcouponpromotionsandequivalent
discount promotionsandfoundthatcouponpromotionsproducedmore
favorableevaluationsandpurchase intentions.Asnotedpreviously,a
discountiswidelyrecognizedasreducingthepostedpricewhileacouponis
abonusthatleavesthepriceintact.``Promotion’’isanambiguoustermthat
canbeunderstoodtomeanmanythings.Additionally,wehypothesize a
moderatingeffectofprovisionofacode.Forthosewithoutanycode,wedo
notenvisionthatthephrase usedmatters.Similarfeelingsofinequityare
expectedregardlessofthephrasing.
H3.Withinthecodepossession/omissionandprompt/nopromptgroups,the
useof``promotion’’codewillresultinthehighestsatisfaction/least
dissatisfactionwhile ``discount’’codewillresultinthelowest
satisfaction/mostdissatisfaction.``Coupon’’shouldfallbetweenthetwo.
Moreover,theseeffectswillbemoderatedbycodepossessionwhereby
nodifferencesarepredictedinthenocodecondition.
Methodology
Medium
AWebsitewasconstructedinthecontextofbuyingagiftforaneightyear
oldgirl’sbirthdaypartyatatoystore.NamedToyMart.com,thesiteoffered
aproductcalleda``CuddlesBaby’’for$39.99.Consumerswereguided
throughahypothetical shoppingexperience,whichincludedsimulated
searchingfortheitemattheonlinestoreandaddingittotheshopper’s
virtualshopping cart.Afteradministrationofapre-test,acheckout screen
wasdisplayedconfirmingthepurchasetotalandbillinginformation,and
containingthestimulus.Shipping wasfreetoeliminatethispotential
confound(Morwitzetal.,1998);similarly,taxeswereignoredasout-of-state
consumersarenotchargedsalestax.Ifacodewasprovided,theprice
reductionwas$10.ThescenarioposedtorespondentsisasinFigure2.
Respondents
Studyparticipantswererecruitedfromanumberofsourcesincludinganad
onGoogle,variousemailinglistsofsurvey``panelists,’’andstudentsatthe
authors’andothers’institutions.Inall,206respondentsparticipated;the
onlinesurveywasstoppedwhenthenon-controlcellsbecame balanced.
Design
Thestudydesignwasa2£2£3withcontrolexperiment.Thetreatments
wereasfollows:nocode(control);havevs.donothaveacode,promptedvs.
unprompted codefield,andtheuseofeither``promotion,’’``coupon,’’or
``discount’’torefertothenatureofthepricereduction.Inalltherewere13
treatments.Cellmembershipswererandomlybalancedbyclosingoff
``filled’’cellswiththeexceptionofthecontrolgroupwhichwasheldat50.
Thefinaltallyresultedincountsof13pernon-control treatment.
‘‘Promotion’’isan
ambiguoustermthatcan
beunderstoodtomean
manythings
Consumerswereguided
throughahypothetical
shoppingexperience
126
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
Instrumentsandmeasures
Forthepurposeofthisstudy,thesurveycomponent consistedofatwo-part
post-testsection,separatedbya``Continue’’command,asshowninthe
Appendix.Thefirstpartcontainedtheprimarydependentvariablesofprice
fairness,satisfaction,andintention/recommendation.Allitemswere
recordedonseven-pointagree-disagreescales.
Thepricefairnessquestionwasdirectandappearedimmediatelyafterthe
purchasehadbeensubmitted.Inthissense,themeasureisa``pure’’formof
thecentralbehavioralfocusofthestudy.Togetabroadmeasure of
satisfaction,thenextthreeitemsintheAppendixwereaveraged;this
satisfactionscaleconsistedofpurchasesatisfaction,positivedisconfirmation
(Oliver,1997),andpotentialloyalty.Inasense,thisreflectsaholisticview
ofsatisfactionasittakesintoaccountanantecedent(disconfirmation)anda
consequent(loyalty).Thisscaleproducedanalphaof0.74.Theintentand
recommendationquestionswerecollectivelyusedtoreflectfuturebehaviors
towardthestoreandothers;thealphaforthetwo-itemscalewas0.81.
Thenoncompletion itemaddressedtheshopping cartabandonmentissue
inthestudy.Thisitemwasreservedforthesecond post-testsoasnotto
affectresponsesinthefirstpost-testsection.Becauseallrespondentswere
requiredtocompletethe ``purchase,’’wewerenotable totestactual
abandonmentand,therefore,posedthisquestioninahypotheticalmanner.
Notethatthisitemiswordedinthenegativesothathighscoresrepresent
greaternoncompletion tendenciesonthepartoftherespondent.
Analysisandresults
Allhypothesesweretestedwitht-testsandone-wayANOVA.Theresultsof
testingH1a,H1b,andH1careshowninTablesIIandIIIandthefollowing
discussion.ThedatashowcleareffectsintheexpecteddirectionforH1a
(Have>Control),H1b(Don’thave<Control)andH1c(Have>Control>
Figure2.
Pricefairnessquestion
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
127
Don’tHave)forthedependentvariablesoffairnessandsatisfaction.
NoncompletionwassignificantforH1bandH1c.Forintention,themeans
areintheexpecteddirection,butonlytheANOVAissignificant.
TheresultsoftestingH2a,H2bandH2careshowninTablesIVandVandthe
followingdiscussion.TableIVshowsthemeansforgroupsalthoughthecontrol
groupwasnotusedforthecomparisonsofpromptedandunprompted cells.
Thedatashowthatpromptinghasnosignificanteffectwiththeexceptionof
theaberrantnoncompletionno-prompt cellwithinthehavecodegroup.This
overallpatternofresultswasestablishedthroughcontrasttestsbetweenthe
promptedandequivalentunpromptedgroups.ThesignificantANOVAtests
forallvariablesexceptintentionresultfrominclusionofthecontrolgroupand,
ineffectmimicTableII.Thus,weareunabletoaddressH2cbeyondthefact
thatthereexistdifferencesacrossthecellsthatresultinasignificantANOVA.
Recallthatwealsohypothesizeddifferencesinthephraseusedfor
thepricereductionwhereby``promotioncode,’’themostwidelyusedphrase,
wasthoughttobemoreacceptableandsatisfyingthan``coupon’’orthemore
directphrase,``discount.’’Moreover,wepredictedthesedifferencesonly
Group/variable
Have/
prompt(39)
Have/no
prompt(39) Control(50)
Don’t/
prompt(39)
Don’t/no
prompt(39)
Pricefairness
5.00
4.92
4.50
3.97
3.82
Satisfaction
4.87
4.99
4.32
3.97
3.76
Intention
4.67
4.79
4.58
4.29
4.24
Noncompetition
3.97
3.13
3.88
4.44
4.62
TableIV.Meansforthehavecode/don’tbyprompt/nopromptandcontrol
groups(ns)
H1a
H1b
H1c
Variable/group
t
p
t
p
F
p
Price/fairness
0.30
0.765
0.60
0.549
8.75
0.000
Satisfaction
±0.56
0.574
1.00
0.317
12.84
0.000
Intention
±0.54
0.588
0.22
0.828
2.05
0.089
Noncompletion
1.07
0.033
0.46
0.649
4.35
0.002
TableV.TeststatisticsandsignificancelevelsforH2a,H2bandH2c
H1a
H1b
H1c
Variable/group
t
p
t
p
F
p
Price/fairness
2.37
0.019
2.87
0.005
17.41
0.000
Satisfaction
3.59
0.000
±2.58
0.011
25.11
0.000
Intention
0.80
0.428
±1.62
0.107
3.96
0.021
Noncompletion
1.07
0.286
±1.96
0.053
6.20
0.002
TableIII.TeststatisticsandsignificancelevelsforH1a,H1bandH1c
Variablegroup
Havecode(78)
Control(50)
Nocode(78)
Pricefairness
4.96
4.50
3.90
Satisfaction
4.93
4.32
3.87
Intention
4.73
4.58
4.27
Noncompletion
3.55
3.88
4.53
TableII.Meansforthehavecode/nocodeandcontrolgroups(Ns)
‘‘Promotioncode’’was
thoughttobemore
acceptableandsatisfying
than‘‘coupon’’
128
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
amongthosewithacode.TheseresultsareshowninTableVI,whichomits
thecontrolrespondentsastheywerenotpresentedwithacodefield.
Somesurpriseswereevidentfromtheresults.First,theonlyvariable/group
combinationproducingsignificantdifferencesappearedamongthehavecode
groupforpricefairness,intention,andnoncompletion;satisfactionwas
significantatthe0.09level.Thesedatasuggestthat,contrarytoprediction,the
phrase``discount’’waspreferredforfairness,satisfaction,andintention;
``promotion’’waspreferredfornoncompletion.Interestingly,``coupon’’
performedatthelowestlevelacrossallvariables,contrarytothefindingsof
Chenetal.(1998)andperhapsreflectingidiosyncrasiesinofflineandonline
buying.Aspredicted,however,differenceswerenotfoundinthenocodegroup
whereallphrasesweresimilarintheireffectonallvariables.Apparently,the
natureofthecodemeanslittleifonedoesnothavetherequiredcode.
Discussion
Codesassatisfiersanddissatisfiers
Theresultsforusingcodesareinaccordwiththeory.Providingacodeand
itsattendantpricereductionclearlyhadpositiveeffectsonperceptionsof
fairnessandsatisfactionwhencomparedtothecontrolgroup.Similarly,
promptingforacodeintheabsence ofhavingonehadnegativeeffectson
fairness,satisfaction,andcompletionwhencomparedtothecontrol.As
wouldbeexpectedfromthesefindings,thethreegroupswererankedinthe
predictedorder(code>control>nocode)foralldependentvariables,
includingintentiontorepatronizeandrecommendtheonline store.
Equitytheory,then,becomesanalternativeexplanationforreactionstocode
provisionandnon-provision.Incontrasttotheeffectofanticipatedregreton
lettinganofflinecouponexpire(InmanandMcAlister,1994),theWebbuyer
withoutacodeexperiencestheadditionalimpactoftheinequityperceivedif
othersareimaginedtohave acode,areselectivelyprovidedone,orare
simplyviewedas``special’’insomesense.
Variable,phase/group
Allwithcode
(156)
Havecode(78)
Nocode(78)
Pricefairness
Promotion
4.38
5.00
3.77
Coupon
4.35
4.58
4.12
Discount
4.56
5.31
3.81
F,sig.
0.41,0.663
3.21,0.046
0.63,0.535
Satisfaction
Promotion
4.34
5.01
3.67
Coupon
4.27
4.63
3.91
Discount
4.59
5.15
4.03
F,sig.
1.31,0.271
2.50,0.089
0.98,0.379
Intention
Promotion
4.38
4.69
4.06
Coupon
4.33
4.37
4.29
Discount
4.80
5.13
4.46
F,sig.
3.31,0.039
3.88,0.021
1.07,0.369
Noncompletion
Promotion
4.02
3.04
5.00
Coupon
4.13
4.12
4.15
Discount
3.96
3.50
4.42
F
,sig
0.12,0.884
3.03,0.054
1.45,0.242
TableVI.Resultscomparingthreetermsforpricereduction(ns)
Equitytheorybecomesan
alternativeexplanationfor
reactionstocodeprovision
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
129
Theresultsalsoshowedsomethingofanunusualnegativityeffectwhereby
variableslaterinthepostpurchaseevaluationprocess,notablyintentionand
noncompletionsentiments,showednoeffectsinthehavegroup,butmore
noticeableeffectsinthedon’thavegroup.Thus,thehavenotsappearto
broadentheirresentmenttoallvariablesmeasuredwhereasthe``positive
surprise’’inthehavegrouponlypertainstothemoreimmediatevariablesof
fairnessandsatisfaction.
Thedesignoftheexperimentdidnotallowforrespondentstoabandon,search
forcodes,andthenrevisittheWebsite,sothispossibilityremainsanuntested
elementofthephenomenaconsideredhere.Asaspeculation,weholdoutthe
possibilitythatthoseaccustomedtosearchingforcodesmayhavebeeneven
morefrustratedbecausetheywerenotallowedtoengageinthisalternative.
InanefforttomaketheWebsitemorerealisticandinlinewiththeactual
promptingforcouponcodesusedbyleadingWebretailers,weincluded
thephrase``Ifyourdiscountcodedoesnotcoverthecostofyourorder’’
(Figure2)whichmaybeinterpretedbyboththenocodeandhavecodegroups
asimplyingthatothersmaybereceivingadiscount(nocode)ormightgetthe
toyatalargerdiscountorforfree(havecode)asthediscountamountothers
receivedwasnotknowntorespondents.Thelikelyeffectinthenocodegroup
isconsistentwithourmainresults.However,iftheeffectinthehavecode
groupisloweredsatisfaction,thisservesonlytostrengthentherelative
performanceofthehavecodegroupcomparedtothehave-nots.Thisraisesa
moregeneralissue±identifyingtheexpectationsofdiscountsconsumersbring
totheshopping experience±whichisdeservingoffurtherstudy.
Whenprompting (Doyouhaveacode?)wasconsidered,disappointing
resultswerefound.Neitherthe``prompting’’nor``non-prompting’’
conditionsprovidedeffectsgreaterthanthoseprovidedbythemaincode
effects.Significancetestsshowedthistobethecasedespitethesignificance
oftheANOVAs.Perhapsboth effectshypothesized asH2aandH2bwere
operatingand,insomesense,cancelledoneanotherout.Codepromptingin
onlineenvironmentswillrequirefurtherstudy.
Lastly,breakingdowntheresultsbytypeofpromotioncodeshowedthatthe
observedeffectsweremostconsistentforuseofthephrase``promotion,’’
andleastconsistentandindeednonsignificant for``coupon.’’Thissupports
ourspeculationthatofflinecouponinghasbecomesocommonplace that
havingornothavingacouponisinconsequential totheonline experience.
Thephrase``discount’’isviewedsimilarlyalthoughtheresultswererobust
acrossfairnessandsatisfactionandsignificantforthe nothavegroupfor
intention.Completionwasnotaffectedforthisvariable.Thephrase
``promotioncode,’’newlyintroducedbyonlinestores,showedconsistent
effectsacrossthedependentvariablesincludingcompletion.Whileweknow
ofnoexperimentationorresearchtestingforthesuperiority ofthisphrase,
wesuspectthatthephenomenondrivingitmaybeknownintheindustry.
Inaccordwithourhypotheses,however,theaforementioneddifferences
werefoundonlyinthehavegroups.Nothavingacode wasuniversally
negativeregardlessofthepromotiontypeused.Thus,onlinestoresmaybe
``turningoff’’and``turningaway’’shopperswithoutacode.
Marketsegmentation
Intheofflineworld,couponshavebeenamechanismformarket
segmentation.Effectivemarketsegmentationrequirestheidentificationofa
discriminatingvariablecorrelatedwithconsumers’willingnesstopay.Then,
anoptimalpricemustbesetforeachsegment.Placingcouponsin
newspapers,forinstance,attractsconsumersmostwillingtoscourthepaper,
Offlinecouponinghas
becomecommonplace
130
JOURNALOFPRODUCT&BRANDMANAGEMENT,VOL.12NO.22003
Documents you may be interested
Documents you may be interested