How Promotions Effect Consumer Purchases

Rational choice theory provides a blueprint for predicting individual behavior under the assumption that objectives and decisions are rationally identified and executed. Under certain conditions, actions reveal preferences and the ability to observe these preferences allows for the possibility to study the effects of subtle changes in individual constraints such as price and wealth affect preferences. For instance, recent work by Eckel and Grossman (2003), Davis, Millner and Reilly (2003), and Davis and Millner (2004) observe a preference for matching promotions over coupon rebates even when the two promotions types are strictly equivalent. An important question remaining is whether this result persists. This paper analyzes whether this seemingly anomalous behavior persists as individuals gain experience through repeated decisions in a controlled environment.

Name thesis:degree_name

Master of Arts

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Economics, School of Business

Year dc:date.available

2006

Author dc:creator

• White, Justin D

Contributors dc:contributor

• Dr. Edward Millner
• Dr. David Harless

• Experiments
• Promotions
• Match
• Rebate
• Economics
• Social and Behavioral Sciences

Statement dc:rights

• © The Author

Identifier

https://scholarscompass.vcu.edu/etd/1255

OAI identifier oai:identifier

oai:scholarscompass.vcu.edu:etd-2254