The Influence of Deal Exclusivity on Consumer Response to Targeted Price Promotions

Abstract

Although targeted price promotions are becoming increasingly common in the marketplace, relatively little is known about how deal recipients respond to customized pricing offers. The authors investigate the role of a sales promotion characteristic that has received little attention in the literature - deal exclusivity - by examining whether the responsiveness of deal recipients to a targeted price discount are influenced by the number of other consumers receiving the offer. In addition to conceptualizing the effects of deal exclusivity on consumer response to targeted price promotions, results from several studies empirically demonstrate that exclusive deals may be viewed more, equally, or less favorably than inclusive offers depending on the size of the price discount, how strongly recipients identify with the deal target group, and the recipient's gender. Evidence is also provided indicating that deal exclusivity effects are mediated by the ability of the promotional offer to allow consumers to engage in self-enhancement processes. Implications for promotions theory and practice are presented, as are future research directions.