The Effect of Consumers’ Goal Orientation on Their Responses to Bonus Pack vs. Price Discount

Due to the prevalence of price discounts and bonus packs in the marketplace, recent research in marketing has examined consumer preferences and retailers choices between these two popular sales tactics. Prior research on sales offers has demonstrated that the types of benefits provided by monetary and nonmonetary offers are different. When consumers receive a nonmonetary offer such as a bonus pack, they feel that they are getting something for free, so it is perceived as a pure gain; on the other hand, a monetary offer such as a price discount may be considered as a reduction in loss. Then, given the link between one’s goal orienatation and his/her sensitivity to gain/loss, consumers’ preference and choice between these two types of offers may depend on whether the type of benefits offered is compatible with consumers’ goal orientations. Drawing upon the theoretical perspective of regulatory focus, we propose that a bonus pack (price discount) is more likely to address consumers’ promotion-related (prevention-related) concerns. Consequently, consumers with a promotion (vs. prevention) orientation are more likely to prefer a bonus pack offer over an economically equivalent price discount offer. The present work holds important theoretical contributions and managerial implications. Theoretically, we introduce the important construct of consumers’ goal orientation into the literature on framing effects and the benefit congruency framework. In doing so, we also expand our understanding of regulatory focus theory which has traditionally focused on a fit effect between consumers’ goal orientation and product attributes, by demonstrating a similar effect between consumers’ goal orientation and different types of offers. Managerially, consumers’ goal orientation can be easily temporarily shifted through marketing messages such as POPs or advertisements. Therefore, our results may shed light on the managerially important question of how marketers can choose between different types of offers to persuade consumers and boost sales.