Buy One, Get One Free: How Framing Sales Promotions Affects the Whole Shopping Basket

Abstract

Abstract According to this study, sales promotions not only affect the sales of promoted items, but also of unpromoted brands and, therefore, the whole shopping basket. The authors demonstrated, in a series of experiments, that the framing of promotions matters. Specific promotions motivate consumers to add more items to their baskets if they are well aligned with the shoppers´ dominant shopping orientation as well as different types of brands. Well-known brands, which represent safe choices, worked well with a savings orientation and with coupons framed as “Save $x” and “Buy one, get one free”. Less familiar brands, which represent a need for variety, were consistent with a promotion focus and with coupons framed as “Get $x off”. Well-known brands were also more compatible with immediately expiring coupons, whereas less familiar brands were compatible with coupons that have longer time horizons. For retailers, it seems advisable to have a closer look at consumer shopping orientations. Among the design variables for promotions, the framing of the savings message and the expiration date restriction are important variables. Depending on the individual shopping orientation, the right cues positively influence whole shopping baskets and hence sales. Further, consistency is beneficial between the positioning strategies used to differentiate themselves from other retailers (e.g., everyday low-price strategies as opposed to value oriented positions) and their price promotional strategies.