Price promotions are commonly used by retailers to motivate consumers to make a purchase. Both the amount off and percentage off are in widespread use, and research on when to use each method has been

Price promotions are commonly used by retailers to motivate consumers to make a purchase. Both the amount off and percentage off are in widespread use, and research on when to use each method has been mixed. The current study evaluated intent to purchase for a lower- and higher-priced item using either a fixed amount or a percentage off. For the lower-priced item, participants saw a promotion for balloons regularly selling for 48 pesos, but on sale with either a 12-peso or a 25% discount. The higher-priced item was a 480-peso sweater on sale with either a 120-peso discount or a 25% discount. One hundred and fifty-one students were randomly assigned to the treatments and responded to two questions measuring value perceptions: “I would be saving a lot of money if I made my purchase at this store,” and “This store is selling the advertised product at a considerable discount.” Participants answered each question on the scale 1 (“strongly disagree”) to 5 (“strongly agree”)