Effect of Quality Uncertainty, Regulatory Focus, and Promotional Strategies on Perceived Savings for Sustainable Marketing

Abstract

Quality uncertainty is one of the major challenges for new products entering a market. Companies launching new products may consider price-related promotions to stimulate consumer purchases. Prior studies have investigated the impacts of quality uncertainty and price-related promotions on consumer behavior. However, studies that consider quality uncertainty and price-related promotions on consumers’ perceived savings based on regulatory focus are rare. Therefore, this study aims at investigating the impacts of price-related promotions (price discount and value-added promotion), quality uncertainty (high vs. low), and regulatory focus (promotion vs. prevention) on perceived savings. Survey studies were conducted, and results were analyzed. The results indicate that when quality uncertainty level is high, perceived savings for price discount and value-added promotions are higher for promotion-focused consumers compared with prevention-focused consumers. By contrast, when quality uncertainty level is low, perceived savings for price discount and value-added promotions are higher for prevention-focused consumers compared with promotion-focused consumers. The results of this study are expected to assist companies in introducing new products to develop sustainable price-related promotions.