Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers: the case of price discounts

Jyrki Isojärvi, Jaakko Aspara*, Reza Movarrei

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

A long-lasting debate in marketing literature is whether retail buyers who purchase consumer products behave like consumers or like industrial purchasing managers. We address this question empirically, by focusing on retail buyers’ behavioral responses to price discounts. Cooperating with a national wholesaler of drugstore products, we conduct a field experiment on the wholesaler’s product ordering platform. We expose the retail buyers (n = 780) to a new product offer that either includes a price discount or not. Simultaneously, we vary peripheral cues included in the offer (package color and organic claim). The results support the “industrial buyer resemblance” argument: The price discount decreases the retail buyers’ purchase likelihood, and there is no significant interaction effect between the price discount and the peripheral cues. An additional qualitative study reveals that retail buyers speculate on the motivations behind the price discount, which elicits suspicions about the product’s quality and resale potential.
Original languageEnglish
Peer-reviewed scientific journalMarketing Letters
Volume33
Issue number3
Pages (from-to)499-521
Number of pages23
ISSN0923-0645
DOIs
Publication statusPublished - 31.05.2022
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • retail buyers
  • price promotion
  • price discount
  • peripheral cues
  • consumer
  • industrial buyer
  • Marketing Effectiveness and Profitability

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Competition economics and service strategy - Quantitative consumer behaviour and competition economics

Fingerprint

Dive into the research topics of 'Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers: the case of price discounts'. Together they form a unique fingerprint.

Cite this