Research on the Price Discount Presentation on Consumers’

Purchase Intention Under the Online Pre-sale Mode: An Empirical

Study Based on SPSS

Shujing Wu

School of Business Administration, Zhejiang Gongshang University, Hangzhou, Zhejiang, China

Keywords: Price Discount Presentation, Perceived Value, Purchase Intention, Product Type, Online Pre-sale.

Abstract: Online pre-sale activities frequently use deposit pre-sale promotion as a new e-commerce marketing concept.

This essay is focused on the pre-sale scenario of internet buying. Four groups of 2 × 2 experiments were

conducted to analyze the price discount presentation (dollar-based deals VS. percentage-based deals) on

perceived value and purchase intention of consumers, and the moderating effect of product type (utilitarian

product VS. hedonic product). The results show that consumers have greater perceived value and purchase

intention for the dollar-based deals, and perceived value plays a mediating role. For utilitarian products,

consumers prefer the dollar-based deals, while for hedonic products, consumers prefer the percentage-based

deals.

1 INTRODUCTION

With the development and progress of Internet

technology, online shopping is becoming more and

more popular. People's consumption habits and

concepts are constantly changing, and they are

increasingly dependent on and cannot leave online

shopping. At the same time, Taobao, Jingdong,

Pinduoduo, and other Internet shopping platforms

have risen rapidly, and a large number of merchants

flood into the online market every year. In order to

stand out in the fierce competition, platforms and

businesses must use endless promotional means and

marketing methods to attract consumers, pre-sale is

one of the more widely used. The presale was

originally a method used to estimate consumer

demand in industries with certain supply but uncertain

demand. An online pre - sale can predict demand,

reduce inventory risk, reduce logistics pressure, and

preheat for business publicity, but also ensure the

availability of consumer goods, therefore, network

pre-sale is loved by businesses and consumers,

becoming a new e-commerce marketing model.

In recent years, the "double 11" shopping carnival

adopts the pre-sale promotion mode of "deposit and

balance ", combined with price discount promotion,

that is, consumers can directly book products by

paying the deposit in advance and enjoying a certain

price discount. During the pre-sale period, the price

information and discount information presented on

the product sales page are often more complex and

difficult than in the ordinary sales period. Merchants

usually mark the original price, deposit, balance

payment, discount, and final price of the pre-sale

products. According to the framing effect, different

ways of presenting the same information may make

the information receivers process the information

differently and have different cognition, thus leading

to different attitudes and behaviors of the information

receivers. The price discount information can usually

be expressed by absolute value or relative value, that

is, dollar-based deals and percentage-based deals.

Equivalent price discounts presented in different

ways will affect consumers' perceived value and

purchase intention, thus affected the effect of

promotion (Hao, Gao, Jia 2008). Therefore, if

merchants want to attract more consumers and pursue

better promotion effects within the limited promotion

budget, they need to deeply understand how the two

price discount presentation methods affect

consumers' purchase intention.

The purpose of this paper is to explore the

relationship between the presentation of price

discounts, consumer perceived value, and consumers’

purchase intention, as well as the mediating role of

perceived value and the moderating role of product

724

Wu, S.

Research on the Price Discount Presentation on Consumers’ Purchase Intention Under the Online Pre-sale Mode: An Empirical Study Based on SPSS.

DOI: 10.5220/0011757100003607

In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology (ICPDI 2022), pages 724-730

ISBN: 978-989-758-620-0

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

type. This paper in combination with the practical

background of the online booking; builds a price

discount to present ways to influence customers’

purchase intention model, by the methods of literature

review, the experimental study method combines a

questionnaire approach to investigate consumers,

fully study relations between variables, to verify the

hypothesis and analysis. Hope to provide useful

advice and guidance for the future business advance

sales promotion activities.

2 THEORETICAL

BACKGROUND

2.1 Price Discount Presentation

At the moment, there are a variety of price discount

presentation methods in the market, this paper

discusses the more common numerical presentation

methods: absolute number and relative number, that

is, dollar-based deals (original price 500 yuan, save

125 yuan) and percentage-based deals (original price

500 yuan, save 25 %), the two have the difference in

the form of calculation. The dollar-based deals, such

as the original price of 100 yuan, are immediately

reduced by 50 yuan, such price presentation mode

allows consumers to use simple subtraction

calculation can get the final price of goods. This

presentation directly tells consumers the specific

amount saved in the form of absolute value but does

not reflect the relationship between the discount and

the original price of goods, so it cannot directly

represent the relative value of the discount to the

original price. And the percentage-based deals, on the

other hand, such as the original price of 100 yuan ,

50% discount, or fifty percent discount, this

presentation in the form of a relative value cannot let

the consumer directly through simple addition and

subtraction to calculate the amount of the discount

and the final price, consumers want to know the

specific discount amount will need to use more

complex than addition and subtraction, a method to

calculate, it lays more emphasis on the relative value

and relationship between discount and original price

of goods. It can make consumers intuitively feel the

discount intensity of promotion.

In the field of marketing, due to the framing effect,

the expression of promotional information, price

information, and other statements used by operators

in advertising may affect consumers' perception and

purchase intention. The presentation of price discount

means different expressions of price discount of the

same value (Min & Thomas 2006). Different

presentation methods of price discounts will affect

consumers' perceived value and purchase intention,

and in the end affect the effect of promotion (Hao,

Gao, Jia 2008).

2.2 Perceived Value

After a lot of research and analysis, experts and

scholars at home and abroad have different definitions

of consumer perceived value. Consumers' perceived

value refers to their feelings and evaluations of

products after weighing and comparing their costs and

benefits (Zeithaml 1998). Consumers' perceived

value is not only related to products; but also to the

relationship between enterprises and consumers

(Annika & Christian 1996). Enterprises can improve

consumers' perceived value by developing sustained

and good emotional connections with consumers

(Annika & Christian 1996). Raquel and Ángeles

(2007) (Raquel & Ángeles 2007) proposed that

consumers' perceived value of products reflects the

complex and diversified interaction between them,

and perceived value is consumers' cognitive emotion

toward products. Domestic scholars have also

conducted relevant studies on the consumer perceived

value. Zhang (2007) holds the view that perceived

value refers to consumers' evaluation of whether the

income they get meets their real needs in the purchase

process. Perceived value reflects consumers' attitudes

and evaluations of products. To sum up, previous

scholars hold different views on the definition of

perceived value. Based on the literature review, this

paper defines consumer perceived value as the

balance between perceived gains and perceived losses

in the process of consumption.

According to the framing effect, consumers'

perception and processing of price and discount

information will be different when using different

presentation methods of price and discount. Haim and

Oliver (1993) (Haim & Oliver 1993) analyzed from

the perspective of a psychological account and

concluded that consumers' perceived value would be

different due to different presentation methods of

price discounts. Zeithaml (1988) believed that when

consumers perceive more discounts, they will

increase perceived value correspondingly. The dollar-

based deals, show discounts intuitively in the form of

absolute value, and consumers only need to use

simple addition and subtraction to get preferential

results quickly, while facing the percentage-based

deals, consumers need to carry out more complex

multiplication and division operations. Therefore, in

general, dollar-based deals can generate more

Research on the Price Discount Presentation on Consumers’ Purchase Intention Under the Online Pre-sale Mode: An Empirical Study Based

on SPSS

725

perceived value. According to previous studies,

perceived value promotes consumers' purchase

intention (Dhruv, Monroe, Krishnan 1998). Perceived

value is an important condition for the formation of

purchase intention, and consumers' purchase intention

will be affected by perceived value. When consumers

perceive the strength of the discount well through the

presentation of the price discount, they will have a

greater perceived value of the product, and consumers

will have a higher purchase intention and a greater

probability and possibility to purchase the product

when making purchase decisions (Zhang, Fan, Wang

2007). So we propose the following hypothesis:

H1: When confronted with dollar-based deals

(VS. percentage deals), Consumers will generate

more perceived value and purchase intention, and

perceived value plays a mediating role in this model.

2.3 Product Type

From the perspective of consumer behavior, Haim

and Oliver (1993) (Haim & Oliver 1993) believed that

the Utilitarian and hedonism of goods would affect

consumers' choice of goods. Due to the difference

between Utilitarian and hedonism, consumers have

different purchasing psychology and reaction to these

two kinds of products in the process of price discount

promotion.

Utilitarian products can provide consumers with

practical functional value and meet the necessary

needs of consumers in life. In the purchase process,

consumers are generally rational and pay more

attention to the practicability of products. Therefore,

consumers usually have legitimate reasons to buy

practical products (Kivetz & Simonson 2002).

Therefore, in the face of price discount promotion of

practical products, for rational consideration,

consumers will prefer the presentation of price

discount which is easy to calculate clear results.

Compared with the multiplication and division

method used in the presentation method of a

percentage discount, the addition and subtraction

method used in the dollar-based deals is easier to

calculate, and it is easier to quickly calculate the

specific amount of discount, which can reduce

consumers' underestimate of price discount (Kivetz &

Simonson 2002). In other words, the dollar-based

deals expressed in absolute value will improve

consumers' perceived value of practical products.

Hedonic products emphasize the enjoyment value

of products and bring consumers a good experience of

feeling and emotion. Consumers tend to be more

casual and emotional in the purchase process. This

enjoyment value is harder to measure explicitly than

the functional value of utility; Hedonic products do

more to improve the quality of life of consumers than

to satisfy their essential needs. Therefore, when faced

with the price discount promotion of hedonic

products, it is difficult for consumers to find a

legitimate reason to buy hedonic products, and thus

they tend to feel guilty (Hooman 2003). At this point,

to avoid guilt and want to get a more fuzzy price

perception, consumers will be more inclined to the

presentation of a percentage discount, the particular

reason for the circumstance is this kind of price

discount presentation method can not let consumers

directly through simple addition and subtraction to

calculate the amount of discount and the final price to

pay; In addition, the form of relative value conveys to

consumers more the relative value and relationship

between discounts and the original price of goods. It

can make consumers intuitively feel the discount

intensity of promotional goods, to help consumers

persuade themselves to buy hedonic products

properly. To sum up, this paper proposes the

following hypotheses:

H2: Product type moderates the effect of the price

discount presentation on consumers’ perceived value.

H2a: For utilitarian products, the dollar-based

deals in the form of absolute value bring higher

perceived value to consumers.

H2b: For hedonic products, the percentage-based

deals in the form of relative value bring higher

perceived value to consumers.

3 METHOD

3.1 Design and Participants

The formal experiment adopts the experimental

design of 2 (price discount presentation: dollar-based

deals VS. percentage-based deals) × 2 (product type:

utilitarian product VS. hedonic product), and a total

of 4 experimental groups are set up. One hundred

forty undergraduate students participated in the

experiment and were randomly assigned to one of the

four cells, The participants read the target print ad at

their own pace and then filled out the questionnaire.

After excluding invalid questionnaires, there were

One hundred nineteen valid questionnaires with

effective recovery of 92. 23 %. Among them, 42. 64

% were male and 57. 36 % were female.

3.2 Stimuli

The gender of the subjects will affect the acceptability

of the product and brand to some extent. Therefore,

ICPDI 2022 - International Conference on Public Management, Digital Economy and Internet Technology

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sportswear that is easily accepted by men and women

is selected as experimental material in this study.

Before the formal experiment, the product type was

pre-tested. Forty subjects were divided into two

groups on average. They read the situational

simulation materials of utilitarian sports apparel and

hedonic sports apparel respectively, and then

completed 10 questions about the product type (Voss,

2003). The results showed that the utilitarian score (M

= 5.70) was higher than the hedonic score (M = 3.97),

and the difference was significant (P < 0.05). The

utility score of the hedonic sports clothing group (M

= 3.07) was significantly lower than that of the

hedonic sports clothing group (M = 5.57) (P < 0.05).

Thus, situational materials for utilitarian sportswear

and hedonic sportswear have been successfully

manipulated.

In this experiment, the original price of the

sportswear is set at 200 yuan, the deposit is 20 yuan

(10%), the payment is reduced by 50 yuan (25%), the

final payment is 130 yuan (65%), and the hand price

is 150 yuan (75%) (Please refer to the appendix for

specific stimulus materials). After participants read

the stimuli, the perceived value was assessed by a

three-item 7-point scale (i.e., In this promotional

situation, I think this product is well worth buying) (α

= 0.88) (Dodds, Monroe Grewal 1991). Purchase

intention was assessed on a three-item 7-point scale

(i.e., In this promotional scenario, the likelihood that

I will consider buying this product is high) (α = 0.97)

(Dodds, Monroe Grewal 1991). Product type was

assessed on a ten-item 7-point scale, too. (α = 0.82)

(Voss, 2003). The product type scale was used to

extract effective questionnaires to increase the

effectiveness of the experiment. In the utilitarian

situation, subjects considered the described products

to be utilitarian, and this questionnaire was effective,

as well as hedonic products. As well as the quality

satisfaction test item: "I am satisfied with the quality

of this sports clothing", and finally the subjects are

asked to fill in the basic personal information.

4 DATA ANALYSIS

4.1 Manipulation Check

For utilitarian sportswear, the score for utilitarianism

(M =5.75) was higher than that of hedonism (M

=3.06), and the difference was significant (P < 0.05).

The utility score of the hedonic sports clothing group

(M = 3.12) was significantly lower than that of the

hedonic sports clothing group (M =5.98, P < 0.05). As

a result, situational materials for utilitarian sportswear

and hedonic sportswear have been successfully

manipulated.

The quality satisfaction of experimental products

was manipulated, and the results were as follows:

utilitarian sportswear dollar-based deals group M =6,

utilitarian percentage-based deals group (M = 5.66) (P

> 0.10); Hedonic sports clothing dollar-based deals

group (M = 5.89), hedonic percentage-based deals

group (M = 5.93, P > 0.10). There was no significant

difference in product quality satisfaction between the

two control groups, and the manipulation test of

quality satisfaction was successful.

4.2 Principal Effect Test

Two experimental groups with utilitarian product

types were selected for analysis, and the effects of

dollar-based deals and percentage-based deals on

perceived value and purchase intention were

compared. Taking the presentation mode of price

discount as the independent variable and the

perceived value and purchase intention as the

dependent variable, the results of variance analysis

show that the presentation mode of price discount has

a significant impact on the perceived value and

purchase intention, and the perceived value and

purchase intention under different presentation modes

of price discount have significant differences.

Specifically, for perceived value, the dollar-based

deals (M = 17.42) brought higher perceived value

than the percentage-based deals (M = 13.16), and the

difference was significant (P < 0.001). As for

purchase intention, the dollar-based deals (M =16.94)

brought higher purchase intention than the

percentage-based deals (M = 13.34), and there was a

significant difference (P < 0.001).

4.3 Mediating Effect Test

In order to further study the impact of price discount

presentation and perceived value on purchase

intention, as well as the mediating role of perceived

value between price discount presentation and

purchase intention. First of all, with perceived value

as the dependent variable and the price discount

presentation method as the independent variable,

regression analysis was conducted. The analysis

results showed that the presentation method of price

discount had a significant positive impact on

perceived value. Secondly, with purchase intention as

the dependent variable and price discount

presentation as the independent variable, regression

analysis was conducted. Finally, with purchase

intention as the dependent variable and price discount

Research on the Price Discount Presentation on Consumers’ Purchase Intention Under the Online Pre-sale Mode: An Empirical Study Based

on SPSS

727

presentation and perceived value as the independent

variables, regression analysis is conducted. The

results of two-step regression analysis. The results

show that price discount presentation has a significant

positive impact on purchase intention. The results of

Model 2 show that, based on the Model 1, the

goodness of fit of the model is significantly improved

after the perceived value is incorporated into the

regression model (ΔR² = 0.768, F = 99.235, P <

0.001), and the perceived value has a significant

positive impact on purchase intention. At the same

time, after the addition of perceived value, the effect

of the price discount presentation on purchase

intention is no longer significant. Based on the

regression analysis results, it can be concluded that

perceived value positively affects consumers'

purchase intention; Perceived value plays a complete

mediating role between the presentation of price

discount and purchase intention. In summary, H1 is

verified.

4.4 Moderating Effect Test

With perceived value and purchase intention as

dependent variables, and price discount presentation

mode and product type as independent variables, the

results of variance analysis showed that the

interaction between price discount presentation mode

and product type of these two dependent variables

reached the level of statistical significance.

Specifically, for perceived value, the presentation of

price discount has significant interaction with product

type (F = 33.036, P < 0.001). In terms of purchase

intention, the price discount presentation has

significant interaction with product type (F = 23.378,

P < 0.001). The samples were further divided into

hedonic product groups and utilitarian product groups

according to the product type. Within the group, the

influence of the price discount presentation on

perceived value and purchase intention was

statistically analyzed.

In terms of perceived value, for hedonic products,

the perceived value brought by the percentage-based

deals (M = 16.586) was higher than that brought by

the dollar-based deals (M = 14.741), and there was a

difference ( F = 5.693, P <0.05 ). However, for

utilitarian products, the perceived value brought by

the percentage-based deals (M = 13.156) and the

perceived value brought by the dollar-based deals (M

= 17.419) were lower and significantly different (F =

34.210, P < 0.001).

In terms of purchase intention, for hedonic

products, the purchase intention caused by the

percentage-based deals (M = 16.241) was higher than

that caused by the dollar-based deals (M = 14.667),

and there was a difference (F = 4.100, P < 0.05).

However, for utilitarian products, the purchase

intention caused by the percentage-based deals (M =

13.344) and the purchase intention caused by the

dollar-based deals (M =16.935) were lower and

significantly different (F = 24.023, P < 0.001).

The above analysis results show that product type

moderates the impact of the price discount

presentation on perceived value and purchase

intention. For hedonic products, the percentage-based

deals make consumers have higher perceived value

and purchase intention than that amount discount. For

utilitarian products, the dollar-based deals make

consumers have higher perceived value and purchase

intention than the percentage-based deals. It is

assumed that H2, H2a, and H2b are verified.

5 CONCLUSION

This paper studies the influence of the price discount

presentation on consumers' perceived value and

purchase intention in online shopping pre-sale mode

by the experimental method, and introduces a product

type as a moderating variable. According to the

analysis of experimental data, the following

conclusions are drawn:

First, in online shopping, consumers will have

different perceived values and purchase intentions

when they are presented with different price discounts

on pre-sold products. In general, compared with the

percentage-based deals, the dollar-based deals can

make consumers generate more perceived value and

purchase intention.

Second, perceived value plays a mediating role in

the influence of the price discount presentation on

consumers' purchase intention. In pre-sale promotion,

consumers will have higher perceived value in the

face of dollar-based deals, and then stimulate higher

purchase intention; However, when presented with a

percentage discount, consumers have lower perceived

value and purchase intention.

Third, product type plays a moderating role in the

effect of the price discount presentation on

consumers' perceived value and purchase intention.

As consumers have different purchasing psychology

and reaction to different types of products, for

hedonic products and utilitarian products, the

presentation of price discounts has a different

influence on consumers' perceived value and

purchase intention. When consumers buy utilitarian

products, they pay more attention to the functional

value of the product. For rational consideration,

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consumers prefer the amount of discount when

promoting utilitarian products. While hedonic

products emphasize enjoyment value, consumers who

buy such products tend to be more emotional and

prone to feelings of guilt. In order to escape from

feelings of guilt, consumers are more inclined to

present the way of percentage discounts when

promoting hedonic products.

The conclusion of this paper has implications for

e-commerce operators to design more effective price

promotion activities. Price discount presentation

affects consumer purchase intention, and perceived

value plays an intermediary role, therefore when

making product prices, business operators need to

carefully consider what kind of price discount

presentation, to increase the perceived value of the

consumer, in turn, increase consumers' willingness to

buy, finally achieve better promotion effect. Product

type plays a moderating role in the influence of price

discount presentation mode on consumers' perceived

value and purchase intention. Therefore, operators

should select price discount presentation mode

according to specific product types. When the product

is a utilitarian product, the dollar-based deals mode

should be selected. When the product is a hedonic

product, choose the percentage-based deals.

Although the experimental results in this paper

prove the research hypothesis, there are still some

deficiencies. First of all, the average effective data of

each experimental group in this paper are about 30

people, and the representativeness and stability of

experimental results are limited. Secondly, this paper

adopts the experimental method, and there may be

some differences between the performance of the

subjects in the experimental conditions and the real

online shopping. Further research using more realistic

experimental scenarios can provide more useful

reference information for e-commerce operators. In

addition, sports clothing was selected as the stimulus

in this experiment to draw a conclusion. Whether this

conclusion is also applicable to other product needs to

be further studied.

APPENDIX

Please read the material and imagine the following

scenario: you are buying a set of pre-sale sportswear

in an online shop, the sportswear meets your quality

requirements, it wears comfortable, has good air

permeability, not easy to deformation; Appearance

design, image sensing, and fashion sense are

relatively ordinary. According to the pre-sale page of

the sportswear, the original price is 200 yuan, the

deposit is 20 yuan, the payment is 50 yuan less, and

the final payment is 130 yuan, so the purchase price

is only 150 yuan.

Please read the material and imagine the following

scenario: you are buying a set of pre-sale sportswear

in an online shop, the sportswear meets your quality

requirements, it wears comfortable, has good air

permeability, not easy to deformation; Appearance

design, image sensing, and fashion sense are

relatively ordinary. According to the pre-sale page for

the sportswear, the original price is 200 yuan, the

deposit is 10 %, the final payment is 25 % less, and

the final payment is 65 % of the original price.

Please read the material and: you are buying a set

of pre-sale sportswear in an online shop, the sports

clothes meet your quality requirements, this set of

sports clothes has beautiful appearance, fashion

design, the image sensor is very good, can bring you

a happy feeling; Comfort, workmanship and air

permeability are relatively ordinary. According to the

pre-sale page of the sportswear, the original price is

200 yuan, the deposit is 20 yuan, the payment is 50

yuan less, and the final payment is 130 yuan, so the

purchase price is only 150 yuan.

Please read the material and imagine the following

scenario: you are buying a set of pre-sale sportswear

in an online shop, the sports clothes meet your quality

requirements, this set of sports clothes has a beautiful

appearance, fashion design, the image sensor is very

good, can bring you a happy feeling; Comfort,

workmanship and air permeability are relatively

ordinary. According to the pre-sale page for the

sportswear, the original price is 200 yuan, the deposit

is 10 %, the final payment is 25 % less, and the final

payment is 65 % of the original price.

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