CEU eTD Collection (2023); Eremić, Ženja: To Add or Not to Add? On the Perception of Discounts in Online Shopping

CEU Electronic Theses and Dissertations, 2023
Author Eremić, Ženja
Title To Add or Not to Add? On the Perception of Discounts in Online Shopping
Summary With the expansion of e-commerce and the wide variety of products offered, businesses employ various marketing strategies to attract prospective consumers. Nowadays, many online shops offer indirect discounts via contingent free shipping policies. This study investigates the impact of shipping costs and recommendations of products on the checkout screen on consumers' perception of discounts and their purchasing decisions. I conduct an online experiment and find that the combination of shipping costs and recommended products influences consumers' interpretation of discounts offered and their purchasing decisions. The findings suggest that consumers treat indirect discounts (via free shipping) and direct discounts in the same way. The results highlight the importance of considering shipping costs and recommended products, as well as the relevance of understanding consumer behavior in designing effective discount strategies for online shops.
Supervisor Köster, Mats
Department Economics MA
Full texthttps://www.etd.ceu.edu/2023/eremic_zenja.pdf

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