Customized online promotions: Moderating effect of promotion type on deal value, perceived fairness, and purchase intent

Abstract

This paper investigated whether consumers differ in their perceptions of deal value, fairness and purchase intentions when presented with individually targeted (or customized) promotions versus universal promotions offered to all consumers at online retail websites. It was found that customized offers lead to significantly higher purchase intent compared to universal offers. Perceived fairness differed significantly across promotion types (free shipping, $ off and temporary reduced price) based on whether they were customized to the consumer or offered universally. Implications for designing customized online promotions are offered.