An Empirical Study On The Impact Of The Price Promotion Extent To The Consumers’ Perceived Risk And Purchase Intention

With the market competition becoming fiercer and fiercer, the price promotion centering on price cut is considered as the most effective method of promoting short-term sales and is adopted frequently by many enterprises. However, many merchants sell some poor-quality products under the mask of promotion. With the frequent exposure of the poor-quality products, the consumers feel the increasing risk day by day. Under such background, strengthening the effects of price promotion and saving costs for the enterprises have become the urgent needs for each marketer. The purpose of this thesis is to study how to carry out the price promotion from the perspective of consumers’perception in order to achieve better results.This thesis firstly reviews the previous research literature and concludes the studying results of the scholars on the consumers’ perceived risk, mechanism of action for price promotion. On the basis of such review and the researching gap of our country and the needs for marketing practice, the influence of the extent of price promotion on consumers’ perceived risk and their purchasing intention is chosen as the research contents of this thesis. Through the analysis of the contents of the advertisement of both the newspapers and the retail sites, it is found that there are three common promotion types adopted by the marketers in the markets of our country:discount, freebie and voucher, with discount as the most commonly used promotion method. Therefore, the specific contents are defined as the study of the differences among these three promotion methods on their influence on the consumers’perceived risk and their purchasing intention.The results obtained from the actual study are that the consumers’perceived risk will increase with the increase of the extent of the three promotion methods. However, the change of each dimension of the perceived risk is not same. Besides, the negative correlation of perceived risk and purchase intention is verified. On the basis of the results, this thesis concludes the mechanism of action of the extent of the price promotion on the consumers’ perceived risk and also proposes some specific advices for the enterprises about how to develop promoting activities more effectively.