Mix or Match? Consumer Spending Decisions in Conditional Promotions

Abstract

Conditional multi-item promotions are a prevalent marketing tactic whereby consumers have to buy a certain number of products to get a discount. This paper examines how framing a multi-item promotion in terms of savings on multiple items versus a single item (e.g., “buy two, get X% off on both” vs. “buy two, get 2X% off on the cheaper item”) affects consumers’ decision-making and product choices. Two laboratory studies and a field study at a boutique clothing store demonstrate that the “2X% on cheaper” framing makes consumers more likely to select similarly priced primary and secondary items. This strategy is driven by increased focus on promotional savings under the “2X% on cheaper” framing, which leads consumers to spend more on their secondary items. Overall, this research shows how a subtle change in the framing of multi-item promotions changes consumers’ product selection strategies and shopping basket composition.