A minimum discount level for a consideration set
Lehmann, Donald R.
|Summary||We examine the role of price discounts in the consideration set formation. Price discounts affect the consideration set by determining the size and membership of the consideration sets of consumers. A consumer compares the price discount with his/her threshold value at that purchase occasion. A given brand belongs to the consideration set of a consumer if the discount is above a certain threshold value. If the discount reach the threshold, the brand does not enter the consideration set. We propose a model in which the threshold is modeled as a probabilistic variable which varies by brands, across consumers and over time.|
Files in this item: