Research on the Price Discount Presentation on Consumers’
Purchase Intention Under the Online Pre-sale Mode: An Empirical
Study Based on SPSS
Shujing Wu
*
School of Business Administration, Zhejiang Gongshang University, Hangzhou, Zhejiang, China
Keywords: Price Discount Presentation, Perceived Value, Purchase Intention, Product Type, Online Pre-sale.
Abstract: Online pre-sale activities frequently use deposit pre-sale promotion as a new e-commerce marketing concept.
This essay is focused on the pre-sale scenario of internet buying. Four groups of 2 × 2 experiments were
conducted to analyze the price discount presentation (dollar-based deals VS. percentage-based deals) on
perceived value and purchase intention of consumers, and the moderating effect of product type (utilitarian
product VS. hedonic product). The results show that consumers have greater perceived value and purchase
intention for the dollar-based deals, and perceived value plays a mediating role. For utilitarian products,
consumers prefer the dollar-based deals, while for hedonic products, consumers prefer the percentage-based
deals.
1 INTRODUCTION
With the development and progress of Internet
technology, online shopping is becoming more and
more popular. People's consumption habits and
concepts are constantly changing, and they are
increasingly dependent on and cannot leave online
shopping. At the same time, Taobao, Jingdong,
Pinduoduo, and other Internet shopping platforms
have risen rapidly, and a large number of merchants
flood into the online market every year. In order to
stand out in the fierce competition, platforms and
businesses must use endless promotional means and
marketing methods to attract consumers, pre-sale is
one of the more widely used. The presale was
originally a method used to estimate consumer
demand in industries with certain supply but uncertain
demand. An online pre - sale can predict demand,
reduce inventory risk, reduce logistics pressure, and
preheat for business publicity, but also ensure the
availability of consumer goods, therefore, network
pre-sale is loved by businesses and consumers,
becoming a new e-commerce marketing model.
In recent years, the "double 11" shopping carnival
adopts the pre-sale promotion mode of "deposit and
balance ", combined with price discount promotion,
that is, consumers can directly book products by
paying the deposit in advance and enjoying a certain
price discount. During the pre-sale period, the price
information and discount information presented on
the product sales page are often more complex and
difficult than in the ordinary sales period. Merchants
usually mark the original price, deposit, balance
payment, discount, and final price of the pre-sale
products. According to the framing effect, different
ways of presenting the same information may make
the information receivers process the information
differently and have different cognition, thus leading
to different attitudes and behaviors of the information
receivers. The price discount information can usually
be expressed by absolute value or relative value, that
is, dollar-based deals and percentage-based deals.
Equivalent price discounts presented in different
ways will affect consumers' perceived value and
purchase intention, thus affected the effect of
promotion (Hao, Gao, Jia 2008). Therefore, if
merchants want to attract more consumers and pursue
better promotion effects within the limited promotion
budget, they need to deeply understand how the two
price discount presentation methods affect
consumers' purchase intention.
The purpose of this paper is to explore the
relationship between the presentation of price
discounts, consumer perceived value, and consumers’
purchase intention, as well as the mediating role of
perceived value and the moderating role of product
724
Wu, S.
Research on the Price Discount Presentation on Consumers’ Purchase Intention Under the Online Pre-sale Mode: An Empirical Study Based on SPSS.
DOI: 10.5220/0011757100003607
In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology (ICPDI 2022), pages 724-730
ISBN: 978-989-758-620-0
Copyright
c
2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
type. This paper in combination with the practical
background of the online booking; builds a price
discount to present ways to influence customers’
purchase intention model, by the methods of literature
review, the experimental study method combines a
questionnaire approach to investigate consumers,
fully study relations between variables, to verify the
hypothesis and analysis. Hope to provide useful
advice and guidance for the future business advance
sales promotion activities.
2 THEORETICAL
BACKGROUND
2.1 Price Discount Presentation
At the moment, there are a variety of price discount
presentation methods in the market, this paper
discusses the more common numerical presentation
methods: absolute number and relative number, that
is, dollar-based deals (original price 500 yuan, save
125 yuan) and percentage-based deals (original price
500 yuan, save 25 %), the two have the difference in
the form of calculation. The dollar-based deals, such
as the original price of 100 yuan, are immediately
reduced by 50 yuan, such price presentation mode
allows consumers to use simple subtraction
calculation can get the final price of goods. This
presentation directly tells consumers the specific
amount saved in the form of absolute value but does
not reflect the relationship between the discount and
the original price of goods, so it cannot directly
represent the relative value of the discount to the
original price. And the percentage-based deals, on the
other hand, such as the original price of 100 yuan ,
50% discount, or fifty percent discount, this
presentation in the form of a relative value cannot let
the consumer directly through simple addition and
subtraction to calculate the amount of the discount
and the final price, consumers want to know the
specific discount amount will need to use more
complex than addition and subtraction, a method to
calculate, it lays more emphasis on the relative value
and relationship between discount and original price
of goods. It can make consumers intuitively feel the
discount intensity of promotion.
In the field of marketing, due to the framing effect,
the expression of promotional information, price
information, and other statements used by operators
in advertising may affect consumers' perception and
purchase intention. The presentation of price discount
means different expressions of price discount of the
same value (Min & Thomas 2006). Different
presentation methods of price discounts will affect
consumers' perceived value and purchase intention,
and in the end affect the effect of promotion (Hao,
Gao, Jia 2008).
2.2 Perceived Value
After a lot of research and analysis, experts and
scholars at home and abroad have different definitions
of consumer perceived value. Consumers' perceived
value refers to their feelings and evaluations of
products after weighing and comparing their costs and
benefits (Zeithaml 1998). Consumers' perceived
value is not only related to products; but also to the
relationship between enterprises and consumers
(Annika & Christian 1996). Enterprises can improve
consumers' perceived value by developing sustained
and good emotional connections with consumers
(Annika & Christian 1996). Raquel and Ángeles
(2007) (Raquel & Ángeles 2007) proposed that
consumers' perceived value of products reflects the
complex and diversified interaction between them,
and perceived value is consumers' cognitive emotion
toward products. Domestic scholars have also
conducted relevant studies on the consumer perceived
value. Zhang (2007) holds the view that perceived
value refers to consumers' evaluation of whether the
income they get meets their real needs in the purchase
process. Perceived value reflects consumers' attitudes
and evaluations of products. To sum up, previous
scholars hold different views on the definition of
perceived value. Based on the literature review, this
paper defines consumer perceived value as the
balance between perceived gains and perceived losses
in the process of consumption.
According to the framing effect, consumers'
perception and processing of price and discount
information will be different when using different
presentation methods of price and discount. Haim and
Oliver (1993) (Haim & Oliver 1993) analyzed from
the perspective of a psychological account and
concluded that consumers' perceived value would be
different due to different presentation methods of
price discounts. Zeithaml (1988) believed that when
consumers perceive more discounts, they will
increase perceived value correspondingly. The dollar-
based deals, show discounts intuitively in the form of
absolute value, and consumers only need to use
simple addition and subtraction to get preferential
results quickly, while facing the percentage-based
deals, consumers need to carry out more complex
multiplication and division operations. Therefore, in
general, dollar-based deals can generate more
Research on the Price Discount Presentation on Consumers’ Purchase Intention Under the Online Pre-sale Mode: An Empirical Study Based
on SPSS
725
perceived value. According to previous studies,
perceived value promotes consumers' purchase
intention (Dhruv, Monroe, Krishnan 1998). Perceived
value is an important condition for the formation of
purchase intention, and consumers' purchase intention
will be affected by perceived value. When consumers
perceive the strength of the discount well through the
presentation of the price discount, they will have a
greater perceived value of the product, and consumers
will have a higher purchase intention and a greater
probability and possibility to purchase the product
when making purchase decisions (Zhang, Fan, Wang
2007). So we propose the following hypothesis:
H1: When confronted with dollar-based deals
(VS. percentage deals), Consumers will generate
more perceived value and purchase intention, and
perceived value plays a mediating role in this model.
2.3 Product Type
From the perspective of consumer behavior, Haim
and Oliver (1993) (Haim & Oliver 1993) believed that
the Utilitarian and hedonism of goods would affect
consumers' choice of goods. Due to the difference
between Utilitarian and hedonism, consumers have
different purchasing psychology and reaction to these
two kinds of products in the process of price discount
promotion.
Utilitarian products can provide consumers with
practical functional value and meet the necessary
needs of consumers in life. In the purchase process,
consumers are generally rational and pay more
attention to the practicability of products. Therefore,
consumers usually have legitimate reasons to buy
practical products (Kivetz & Simonson 2002).
Therefore, in the face of price discount promotion of
practical products, for rational consideration,
consumers will prefer the presentation of price
discount which is easy to calculate clear results.
Compared with the multiplication and division
method used in the presentation method of a
percentage discount, the addition and subtraction
method used in the dollar-based deals is easier to
calculate, and it is easier to quickly calculate the
specific amount of discount, which can reduce
consumers' underestimate of price discount (Kivetz &
Simonson 2002). In other words, the dollar-based
deals expressed in absolute value will improve
consumers' perceived value of practical products.
Hedonic products emphasize the enjoyment value
of products and bring consumers a good experience of
feeling and emotion. Consumers tend to be more
casual and emotional in the purchase process. This
enjoyment value is harder to measure explicitly than
the functional value of utility; Hedonic products do
more to improve the quality of life of consumers than
to satisfy their essential needs. Therefore, when faced
with the price discount promotion of hedonic
products, it is difficult for consumers to find a
legitimate reason to buy hedonic products, and thus
they tend to feel guilty (Hooman 2003). At this point,
to avoid guilt and want to get a more fuzzy price
perception, consumers will be more inclined to the
presentation of a percentage discount, the particular
reason for the circumstance is this kind of price
discount presentation method can not let consumers
directly through simple addition and subtraction to
calculate the amount of discount and the final price to
pay; In addition, the form of relative value conveys to
consumers more the relative value and relationship
between discounts and the original price of goods. It
can make consumers intuitively feel the discount
intensity of promotional goods, to help consumers
persuade themselves to buy hedonic products
properly. To sum up, this paper proposes the
following hypotheses:
H2: Product type moderates the effect of the price
discount presentation on consumers’ perceived value.
H2a: For utilitarian products, the dollar-based
deals in the form of absolute value bring higher
perceived value to consumers.
H2b: For hedonic products, the percentage-based
deals in the form of relative value bring higher
perceived value to consumers.
3 METHOD
3.1 Design and Participants
The formal experiment adopts the experimental
design of 2 (price discount presentation: dollar-based
deals VS. percentage-based deals) × 2 (product type:
utilitarian product VS. hedonic product), and a total
of 4 experimental groups are set up. One hundred
forty undergraduate students participated in the
experiment and were randomly assigned to one of the
four cells, The participants read the target print ad at
their own pace and then filled out the questionnaire.
After excluding invalid questionnaires, there were
One hundred nineteen valid questionnaires with
effective recovery of 92. 23 %. Among them, 42. 64
% were male and 57. 36 % were female.
3.2 Stimuli
The gender of the subjects will affect the acceptability
of the product and brand to some extent. Therefore,
ICPDI 2022 - International Conference on Public Management, Digital Economy and Internet Technology
726
sportswear that is easily accepted by men and women
is selected as experimental material in this study.
Before the formal experiment, the product type was
pre-tested. Forty subjects were divided into two
groups on average. They read the situational
simulation materials of utilitarian sports apparel and
hedonic sports apparel respectively, and then
completed 10 questions about the product type (Voss,
2003). The results showed that the utilitarian score (M
= 5.70) was higher than the hedonic score (M = 3.97),
and the difference was significant (P < 0.05). The
utility score of the hedonic sports clothing group (M
= 3.07) was significantly lower than that of the
hedonic sports clothing group (M = 5.57) (P < 0.05).
Thus, situational materials for utilitarian sportswear
and hedonic sportswear have been successfully
manipulated.
In this experiment, the original price of the
sportswear is set at 200 yuan, the deposit is 20 yuan
(10%), the payment is reduced by 50 yuan (25%), the
final payment is 130 yuan (65%), and the hand price
is 150 yuan (75%) (Please refer to the appendix for
specific stimulus materials). After participants read
the stimuli, the perceived value was assessed by a
three-item 7-point scale (i.e., In this promotional
situation, I think this product is well worth buying) (α
= 0.88) (Dodds, Monroe Grewal 1991). Purchase
intention was assessed on a three-item 7-point scale
(i.e., In this promotional scenario, the likelihood that
I will consider buying this product is high) (α = 0.97)
(Dodds, Monroe Grewal 1991). Product type was
assessed on a ten-item 7-point scale, too. (α = 0.82)
(Voss, 2003). The product type scale was used to
extract effective questionnaires to increase the
effectiveness of the experiment. In the utilitarian
situation, subjects considered the described products
to be utilitarian, and this questionnaire was effective,
as well as hedonic products. As well as the quality
satisfaction test item: "I am satisfied with the quality
of this sports clothing", and finally the subjects are
asked to fill in the basic personal information.
4 DATA ANALYSIS
4.1 Manipulation Check
For utilitarian sportswear, the score for utilitarianism
(M =5.75) was higher than that of hedonism (M
=3.06), and the difference was significant (P < 0.05).
The utility score of the hedonic sports clothing group
(M = 3.12) was significantly lower than that of the
hedonic sports clothing group (M =5.98, P < 0.05). As
a result, situational materials for utilitarian sportswear
and hedonic sportswear have been successfully
manipulated.
The quality satisfaction of experimental products
was manipulated, and the results were as follows:
utilitarian sportswear dollar-based deals group M =6,
utilitarian percentage-based deals group (M = 5.66) (P
> 0.10); Hedonic sports clothing dollar-based deals
group (M = 5.89), hedonic percentage-based deals
group (M = 5.93, P > 0.10). There was no significant
difference in product quality satisfaction between the
two control groups, and the manipulation test of
quality satisfaction was successful.
4.2 Principal Effect Test
Two experimental groups with utilitarian product
types were selected for analysis, and the effects of
dollar-based deals and percentage-based deals on
perceived value and purchase intention were
compared. Taking the presentation mode of price
discount as the independent variable and the
perceived value and purchase intention as the
dependent variable, the results of variance analysis
show that the presentation mode of price discount has
a significant impact on the perceived value and
purchase intention, and the perceived value and
purchase intention under different presentation modes
of price discount have significant differences.
Specifically, for perceived value, the dollar-based
deals (M = 17.42) brought higher perceived value
than the percentage-based deals (M = 13.16), and the
difference was significant (P < 0.001). As for
purchase intention, the dollar-based deals (M =16.94)
brought higher purchase intention than the
percentage-based deals (M = 13.34), and there was a
significant difference (P < 0.001).
4.3 Mediating Effect Test
In order to further study the impact of price discount
presentation and perceived value on purchase
intention, as well as the mediating role of perceived
value between price discount presentation and
purchase intention. First of all, with perceived value
as the dependent variable and the price discount
presentation method as the independent variable,
regression analysis was conducted. The analysis
results showed that the presentation method of price
discount had a significant positive impact on
perceived value. Secondly, with purchase intention as
the dependent variable and price discount
presentation as the independent variable, regression
analysis was conducted. Finally, with purchase
intention as the dependent variable and price discount
Research on the Price Discount Presentation on Consumers’ Purchase Intention Under the Online Pre-sale Mode: An Empirical Study Based
on SPSS
727
presentation and perceived value as the independent
variables, regression analysis is conducted. The
results of two-step regression analysis. The results
show that price discount presentation has a significant
positive impact on purchase intention. The results of
Model 2 show that, based on the Model 1, the
goodness of fit of the model is significantly improved
after the perceived value is incorporated into the
regression model (ΔR² = 0.768, F = 99.235, P <
0.001), and the perceived value has a significant
positive impact on purchase intention. At the same
time, after the addition of perceived value, the effect
of the price discount presentation on purchase
intention is no longer significant. Based on the
regression analysis results, it can be concluded that
perceived value positively affects consumers'
purchase intention; Perceived value plays a complete
mediating role between the presentation of price
discount and purchase intention. In summary, H1 is
verified.
4.4 Moderating Effect Test
With perceived value and purchase intention as
dependent variables, and price discount presentation
mode and product type as independent variables, the
results of variance analysis showed that the
interaction between price discount presentation mode
and product type of these two dependent variables
reached the level of statistical significance.
Specifically, for perceived value, the presentation of
price discount has significant interaction with product
type (F = 33.036, P < 0.001). In terms of purchase
intention, the price discount presentation has
significant interaction with product type (F = 23.378,
P < 0.001). The samples were further divided into
hedonic product groups and utilitarian product groups
according to the product type. Within the group, the
influence of the price discount presentation on
perceived value and purchase intention was
statistically analyzed.
In terms of perceived value, for hedonic products,
the perceived value brought by the percentage-based
deals (M = 16.586) was higher than that brought by
the dollar-based deals (M = 14.741), and there was a
difference ( F = 5.693, P <0.05 ). However, for
utilitarian products, the perceived value brought by
the percentage-based deals (M = 13.156) and the
perceived value brought by the dollar-based deals (M
= 17.419) were lower and significantly different (F =
34.210, P < 0.001).
In terms of purchase intention, for hedonic
products, the purchase intention caused by the
percentage-based deals (M = 16.241) was higher than
that caused by the dollar-based deals (M = 14.667),
and there was a difference (F = 4.100, P < 0.05).
However, for utilitarian products, the purchase
intention caused by the percentage-based deals (M =
13.344) and the purchase intention caused by the
dollar-based deals (M =16.935) were lower and
significantly different (F = 24.023, P < 0.001).
The above analysis results show that product type
moderates the impact of the price discount
presentation on perceived value and purchase
intention. For hedonic products, the percentage-based
deals make consumers have higher perceived value
and purchase intention than that amount discount. For
utilitarian products, the dollar-based deals make
consumers have higher perceived value and purchase
intention than the percentage-based deals. It is
assumed that H2, H2a, and H2b are verified.
5 CONCLUSION
This paper studies the influence of the price discount
presentation on consumers' perceived value and
purchase intention in online shopping pre-sale mode
by the experimental method, and introduces a product
type as a moderating variable. According to the
analysis of experimental data, the following
conclusions are drawn:
First, in online shopping, consumers will have
different perceived values and purchase intentions
when they are presented with different price discounts
on pre-sold products. In general, compared with the
percentage-based deals, the dollar-based deals can
make consumers generate more perceived value and
purchase intention.
Second, perceived value plays a mediating role in
the influence of the price discount presentation on
consumers' purchase intention. In pre-sale promotion,
consumers will have higher perceived value in the
face of dollar-based deals, and then stimulate higher
purchase intention; However, when presented with a
percentage discount, consumers have lower perceived
value and purchase intention.
Third, product type plays a moderating role in the
effect of the price discount presentation on
consumers' perceived value and purchase intention.
As consumers have different purchasing psychology
and reaction to different types of products, for
hedonic products and utilitarian products, the
presentation of price discounts has a different
influence on consumers' perceived value and
purchase intention. When consumers buy utilitarian
products, they pay more attention to the functional
value of the product. For rational consideration,
ICPDI 2022 - International Conference on Public Management, Digital Economy and Internet Technology
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consumers prefer the amount of discount when
promoting utilitarian products. While hedonic
products emphasize enjoyment value, consumers who
buy such products tend to be more emotional and
prone to feelings of guilt. In order to escape from
feelings of guilt, consumers are more inclined to
present the way of percentage discounts when
promoting hedonic products.
The conclusion of this paper has implications for
e-commerce operators to design more effective price
promotion activities. Price discount presentation
affects consumer purchase intention, and perceived
value plays an intermediary role, therefore when
making product prices, business operators need to
carefully consider what kind of price discount
presentation, to increase the perceived value of the
consumer, in turn, increase consumers' willingness to
buy, finally achieve better promotion effect. Product
type plays a moderating role in the influence of price
discount presentation mode on consumers' perceived
value and purchase intention. Therefore, operators
should select price discount presentation mode
according to specific product types. When the product
is a utilitarian product, the dollar-based deals mode
should be selected. When the product is a hedonic
product, choose the percentage-based deals.
Although the experimental results in this paper
prove the research hypothesis, there are still some
deficiencies. First of all, the average effective data of
each experimental group in this paper are about 30
people, and the representativeness and stability of
experimental results are limited. Secondly, this paper
adopts the experimental method, and there may be
some differences between the performance of the
subjects in the experimental conditions and the real
online shopping. Further research using more realistic
experimental scenarios can provide more useful
reference information for e-commerce operators. In
addition, sports clothing was selected as the stimulus
in this experiment to draw a conclusion. Whether this
conclusion is also applicable to other product needs to
be further studied.
APPENDIX
Please read the material and imagine the following
scenario: you are buying a set of pre-sale sportswear
in an online shop, the sportswear meets your quality
requirements, it wears comfortable, has good air
permeability, not easy to deformation; Appearance
design, image sensing, and fashion sense are
relatively ordinary. According to the pre-sale page of
the sportswear, the original price is 200 yuan, the
deposit is 20 yuan, the payment is 50 yuan less, and
the final payment is 130 yuan, so the purchase price
is only 150 yuan.
Please read the material and imagine the following
scenario: you are buying a set of pre-sale sportswear
in an online shop, the sportswear meets your quality
requirements, it wears comfortable, has good air
permeability, not easy to deformation; Appearance
design, image sensing, and fashion sense are
relatively ordinary. According to the pre-sale page for
the sportswear, the original price is 200 yuan, the
deposit is 10 %, the final payment is 25 % less, and
the final payment is 65 % of the original price.
Please read the material and: you are buying a set
of pre-sale sportswear in an online shop, the sports
clothes meet your quality requirements, this set of
sports clothes has beautiful appearance, fashion
design, the image sensor is very good, can bring you
a happy feeling; Comfort, workmanship and air
permeability are relatively ordinary. According to the
pre-sale page of the sportswear, the original price is
200 yuan, the deposit is 20 yuan, the payment is 50
yuan less, and the final payment is 130 yuan, so the
purchase price is only 150 yuan.
Please read the material and imagine the following
scenario: you are buying a set of pre-sale sportswear
in an online shop, the sports clothes meet your quality
requirements, this set of sports clothes has a beautiful
appearance, fashion design, the image sensor is very
good, can bring you a happy feeling; Comfort,
workmanship and air permeability are relatively
ordinary. According to the pre-sale page for the
sportswear, the original price is 200 yuan, the deposit
is 10 %, the final payment is 25 % less, and the final
payment is 65 % of the original price.
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