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The Impact of Discount Sizes on Preferences towards Customer-Engaged Products—The Mediation Effect of Consumer-Company Identification |
WANG Xin,PAN Wanteng,LIU Huimin,XI Kaiyuan,ZHU Hong |
Nanjing University, Nanjing, China |
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Abstract Based on consumer-company identification theory, this study adopted three experiments to explore the impact of various discount sizes on consumers’ preferences towards customer-engaged products and their intention to engage future product development. Results show that moderate discount can enhance consumer-company identification, and increase consumers’ preferences towards customer-engaged products. In contrast, deep discount can diminish consumer-company identification, and lower customers’ preferences for customer-engaged products. Without discount, customers have greater preferences towards customer-engaged products. Examining the combination of discount strategy and customer engagement strategy, we find that the impact of discount sizes on preferences towards customer-engaged products follows an approximated inverted U-shaped relationship, and the consumer-company identification mediates the above-mentioned effect.
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Received: 20 August 2018
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