Who wants a price discount? The differential effects of price discounts on luxury brands and fast­fashion brands

Abstract

The fashion industry is a significant contributor to the global economy, and marketing strategies, such as price promotions, are commonly used to attract customers and promote sales. However, the impact of these promotions on consumers' perceptions of product quality and value can vary depending on the type of product. This study aims to investigate the effect of price promotions on consumers' perceptions of quality and value for apparel products, as well as the impact on consumer’s self­esteem and social­-display­-self­-esteem, with a focus on the differences between luxury fashion and fast-fashion brands. The research employed a between­-subjects experimental design and collected and analyzed survey data to compare how price discounts impact fast­-fashion and luxury fashion brands in terms of their effects on consumers' perceptions and behavior. The findings revealed that price promotions have negative effects on the perceived value of luxury goods, but the inverse effect was observed on fast-­fashion brands. Regarding perceived quality, luxury-­fashion brands, which rely on their image and reputation to convey a sense of high quality, are more sensitive to the negative effects of price promotions, while fast­-fashion brands are less affected. Additionally, consumers in the luxury-­promotion category had higher self­-esteem than those in the fast­-fashion promotion category, and consumers had higher levels of social­-display-­self­esteem, when consuming luxury­-fashion brands. This dissertation provides theoretical and managerial implications for fashion retailers and marketing management in understanding the potential positive and negative effects of price promotions on apparel consumption for different brand categories.

Date of Award	25 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Pedro Niza Braga (Supervisor)