TY  - JOUR
A1  - Bruttel, Lisa Verena
T1  - Is There a Loyalty-Enhancing Effect of Retroactive Price-Reduction Schemes?
JF  - Review of industrial organization
N2  - This paper presents an experiment on the effect of retroactive price-reduction schemes on buyers’ repeated purchase decisions. Such schemes promise buyers a reduced price for all units that are bought in a certain time frame if the total quantity that is purchased passes a given threshold. This study finds a loyalty-enhancing effect of retroactive price-reduction schemes only if the buyers ex-ante expected that entering into the scheme would maximize their monetary gain, but later learn that they should leave the scheme. Furthermore, the effect crucially hinges on the framing of the price reduction.
KW  - Buyer behavior
KW  - Experiment
KW  - Loss aversion
KW  - Rebate and discount
KW  - Regulation of dominant firms
KW  - Risk aversion
Y1  - 2018
U6  - https://doi.org/10.1007/s11151-018-9653-9
SN  - 0889-938X
SN  - 1573-7160
VL  - 54
IS  - 3
SP  - 575
EP  - 593
PB  - Springer
CY  - Dordrecht
ER  -