Consumers' price perceptions of promoted products

Abstract Two experiments examined how perceptions of various types of promotions affect consumers' perceptions of price. The first experiment found that offering the same product in the context of a sale or with a coupon lowered consumers' price perceptions to a greater extent than offering it in the context of a rebate. Study Two examined how the time at which the savings of a promotion are received and the effort required to redeem the savings affect price perceptions. When savings were received at the time of purchase, price perceptions were lower than when savings were delayed.