The Impact of Store Image, Frequency of Discount, and Discount Magnitude on Consumers’ Value Perceptions and Search Intention

A study was conducted to determine if perception of an advertised discount is affected by the magnitude of the discount, frequency of store discounting and store image. Results indicate that the higher the discount, the greater perceived value and interest in the product/brand. There is little indication that stores that have a more prestigious image and those that infrequently discount gain any significant advantage in terms of perceived value, interest in, level of search, or purchase intentions for products/brands over stores that frequently discount or whose image is less prestigious. Discussion and implications are presented.