Consumer Engagement Through Conditional Promotions

Abstract

This paper investigates consumers' response to conditional promotions (CP) offered in an offline retail store. Using qualitative research inquiry, we decipher the consumer decision-making process by finding the linkages between 'pre-cart' and the 'post-cart' add-on purchases. Thematic analysis of qualitative data (focus groups and personal interviews) resulted in four themes, i.e. 'Criticality of Product Utility,' 'Mode of Payments,' 'Loss Aversion by Consumers,' and 'Inability to Think Out-of-Box by the Consumers.' We add value to the existing marketing literature by finding the relationship between products purchased in 'pre-cart', i.e., without the knowledge of CP and 'post-cart', defined as add-on products added to the cart to avail the CP offer while purchasing in an offline retail store. Further, we find that consumers' willingness to avail CP varies with different relative distances from the target purchase cart value (high vs. low) and mode of payments (cash vs. digital). We discuss the theoretical and managerial implications of the research.