Short-Term Discounting Frameworks: Insights from Multiple Experiments

Abstract

Ever since the online retailing format has emerged in India, consumers now have wideroptions available for them to buy a product at a discounted price and notably, as onlinestores in India are following the product discounting as one of the key drivers for consumeracquisition, consumers’ perspective towards discount at brick-and-mortar store has changed.This change in consumers’ perspective has put the majority of brick-and-mortar retailers inIndia into a quandary and they are losing out their market share slowly to online retailers. Inthis research which is based on recommendations of empirical research previously carriedout on the impact of changes in retailer and consumer perspective towards discount postemergence of online stores in India, we have carried out multiple experiments on multipleshort-term discounting frameworks to investigate and recommend brick-and-mortar retailerson ideal (a) frameworks, (b) duration, (c) types, (d) assortment coverage, and (e) advertisingtechniques for short-term discounting strategies to enable brick-and-mortar retailers todesign appropriate sales promotions to gain a competitive advantage over online retailing onthe discount component.