Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers: the case of price discounts

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openAccess

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Journal Title

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Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2022-09

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Mcode

Degree programme

Language

en

Pages

23
499-521

Series

MARKETING LETTERS, Volume 33, issue 3

Abstract

A long-lasting debate in marketing literature is whether retail buyers who purchase consumer products behave like consumers or like industrial purchasing managers. We address this question empirically, by focusing on retail buyers’ behavioral responses to price discounts. Cooperating with a national wholesaler of drugstore products, we conduct a field experiment on the wholesaler’s product ordering platform. We expose the retail buyers (n = 780) to a new product offer that either includes a price discount or not. Simultaneously, we vary peripheral cues included in the offer (package color and organic claim). The results support the “industrial buyer resemblance” argument: The price discount decreases the retail buyers’ purchase likelihood, and there is no significant interaction effect between the price discount and the peripheral cues. An additional qualitative study reveals that retail buyers speculate on the motivations behind the price discount, which elicits suspicions about the product’s quality and resale potential.

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Publisher Copyright: © 2022, The Author(s).

Keywords

Consumer, Industrial buyer, Peripheral cues, Price discount, Price promotion, Retail buyers

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Citation

Isojärvi, J, Aspara, J & Movarrei, R 2022, ' Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers : the case of price discounts ', MARKETING LETTERS, vol. 33, no. 3, pp. 499-521 . https://doi.org/10.1007/s11002-022-09634-7