The moderating role of maximizing decision-making style on consumer response to price discounts

Purpose The purpose of this study is to examine whether consumers with a maximizing (versus satisficing) decision-making style are more likely to infer lower quality from price discounts, which negatively impacts product evaluations. Design/methodology/approach Study 1 (n = 203) measured price-discounted purchases as a function of maximizing decision-making style in a field study. Three subsequent experiments examined maximizer response to discount price frames. Study 2 (full price, discount and n = 203) replicated the effect and demonstrated the underlying psychological process. Study 3 (n = 502, full price, shallow discount and deep discount) tested the moderating effect of discount depth. Study 4 (n = 414, full price, shallow discount, bonus pack and free gift) tested promotional format boundary conditions. Findings Maximizers evaluated price-discounted products more negatively because of lower product quality inferences and reduced downward social comparisons. The effect was attenuated by deep discounts and free gift offers. Research limitations/implications Three studies used hypothetical scenarios and online participants, limiting external validity. Practical implications Managers can more effectively target maximizers with promotional formats that decrease [increase] the salience of the price reduction [economic savings]. Social implications Maximizers made aware of their tendency to heuristically devaluate price-discounted products may give additional consideration to such products, leading to more optimal choice outcomes. Originality/value The results of this study bolster emerging findings challenging the conceptualization of maximizers as highly rational and utility-maximizing decision-makers (Ma et al., 2023; Misuraca et al., 2021; Thomas, 2022) by showing that maximizers were more likely than satisficers to engage in heuristic processing in the context of price discounts.