The effects of discount type on consumers' perceived discount attractiveness

Price discounts serve as one of the marketing tools that attract customers, increase sales, and customer loyalty. Discounts have become a versatile and powerful tool for businesses by providing insights into customer behavior and preferences. While regular price discounts remain prevalent, marketers have recently started employing luck based price discounts. The perceived attractiveness of discount types is a criterion for how consumers subjectively evaluate and respond to the discounts offered by retailers or businesses when making purchasing decisions. This research aims to investigate the effects of discount type (regular price discount or luck based price discount), brand familiarity (unfamiliar or familiar), gender, and consumer risk avoidance tendencies on perceived price attractiveness. Four scenarios between-subjects experimental design was utilized, manipulating discount type and brand familiarity to examine how these variables influence perceived price attractiveness. Participants in the study were individuals aged 18 and above residing in Turkey, and a convenience sampling method was employed to reach the participants. The results of the study revealed that perceived price attractiveness from luck based price discounts is higher than that from regular price discounts. Similarly, the perceived price attractiveness of familiar brands is higher compared to unfamiliar brands. Although women perceive greater price attractiveness than men, the interaction between gender and discount type had no significant impact on perceived price attractiveness. Likewise, while risk-takers perceive greater price attractiveness than risk-avoidant individuals, the interaction between risk avoidance tendencies and discount type had no significant effect on perceived price attractiveness. The findings of the study recommend the frequent use of luck based price discounts by marketers to enhance perceived price attractiveness. Keywords: Price discount, Brand familiarity, Risk, Consumer Perceptions