The Attraction Effect in Consumers’ Response to Coupon Promotions
(A2025-126409)

AUTHORS

Sören Köcher, TU Dortmund University - Department of Marketing; Sarah Köcher, Kiel University

ABSTRACT

Coupon promotions are ubiquitous and enjoy great popularity on both sides, among marketers and consumers. The current research investigates whether, when, and why the construction of a set of promotional coupons can evoke an attraction effect wherein consumers’ reactions to a target coupon (e.g., “save 20% today with coupon A”) are more favorable when it is distributed along with an inferior decoy coupon (e.g., “save 10% tomorrow with coupon B”)—that is dominated by the target coupon—than when it is distributed alone. A series of four studies, including online studies and a field experiment, provides substantial empirical evidence of the existence of the effect and sheds light on the mechanism underlying this phenomenon. In addition, considering a context-specific moderator, the studies reveal that the effect is stronger among price-conscious consumers.