Does Exclusivity Always Pay Off? Exclusive Price Promotions and Consumer Response

Abstract

Although customized price promotions are increasingly common in the marketplace, relatively little is known about how deal recipients evaluate them. The authors investigate the role of a promotional characteristic that has received little attention in the literature by examining whether consumers’ responsiveness to a targeted discount is influenced by their perceptions of the deal's exclusivity (i.e., the degree to which the offer is available only to them or to other consumers as well). The results demonstrate that exclusive promotions may be viewed more, equally, or less favorably than inclusive offers, depending on several factors used in decisions about the delivery of targeted offers (e.g., customer demographics, transactional histories). Specifically, the authors find that exclusive deals are favored over inclusive offers (Study 1), a preference that is pronounced for consumers adopting independent self-construals (Study 2) and for male consumers with a history of purchasing from the marketer providing the offer (Study 3). These exclusivity effects are mediated by the ability of the promotional offer to allow consumers to engage in self-enhancement (Study 3).