This e.g. when a person’s income rises they will



This assessment will be focused on a review of a journal
article, focussing on issues addressed in the article by the author and what
the author is trying to set forward, his ideas, research, strengths and
limitation to it. The essay will focus on the boomerang effect, and if it does
really have the effect that the Author sets forward for it to have.  This essay will also address whether the
points mentioned in the article does justice.


The purpose of this article is to show that low price
discount (vs no) discount can lower purchase propensity of low-priced products
under certain conditions. This is due only when the product is nonessential and
available in low quantity.  Whereas
essential product with huge quantity can increase the purchase propensity. The
key issues which are being addressed, that an essential good with low price
discount can increased the purchase 
percentage rate whereas an nonessential 
good with low discount can decrease the purchase rate. But there are
other factors which can for e.g. when a person’s income rises they will
purchase more expensive even if it’s non-essential, as they have income to
support their extra needs, whereas a person with low income, will only be able
to purchase what they can afford, e.g. inferior goods, which is at low price,
which is essential to their needs (V?duva, 2015), this goes to show that low
purchase discount product is more applicable to lower income group compare to
higher income group. The author thinks this may have interest in people is
because, reader might come to think why do high price products sell more than
low price products, furthermore the reader wants to increase his knowledge and
fulfil his curiosity “when attention becomes focused on a gap in one’s
knowledge. Such information gaps produce the feeling of deprivation labelled
curiosity the curious individual is motivated to obtain the missing information
to reduce or eliminate the feeling of deprivation.” (Loewenstein, 1994). The
authors have found a gap in the literature, as their research on this topic is
completely different. Not many authors have talked about this specific topic in
their research, for e.g. many comment on how your wealth effects your
capability to buy a specific product. Where an increase in price causes an
increase in demand. The reason is that the income effect the rise in the price because
you to buy more o cheap good because you can’t afford more expensive goods
(Pettinger, 2016). This author talks about effect on change in income, where
this theory is completely different, and doesn’t consider change in income. Based on the purchase value (Grewal, Monroe and
krishnan 1998; Thaler 1983) have seen that offering a low price discount
can lower the consumer’s purchase propensity… Basically when prices of goods
fall the demand for good also falls. Let us take the example of onions, if the
price of onion falls people won’t buy it considering the possibility of low
quality. Looking at the other side some people may buy the onions in spite of
low quality due to factors like low income, poverty, etc. When argue that when
purchasing a low- priced essential product, a low or no discount may increase the
purchase likelihood and when purchasing a low-priced non-essential product, a
low or no discount product leads to boomerang effect which decreases the
purchase likelihood. So, considering all these assumptions can conclude that
low price discount affects purchase propensity.

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The research method that the authors have used is
quantitative research. Quantitative research methods are also used to gather
insights but the size and range of the user group can be expanded. This type of
research focuses more on collecting user “data” as opposed to just insight. In
general, it would describe quantitative research as answering the “who” and
“what” of user behaviour. Examples of quantitative methods include: structured,
unmoderated testing, surveys, and questionnaires (, 2015). The
methods which are used are appropriate  can use quantitative research
methods such as A/B testing for validating or choosing a design based on user
satisfaction scores, perceived usability measures, and/or task performance. You
will find the insight will be more superficial, but the data is statistically
valid and can be generalised to the entire user population. (,
2015). By using graphs and table the author is able to show, compare each
product at its discount price and effects of high price discount vs no to low price,
with essential and non-essential product. With huge data, he is able back up
his point, and successfully address his point. The strengths to this research
method is that larger sample sizes often make the conclusions from quantitative
research generalizable (quantitativevqualitativeresearchanswers, 2016). Statistical
methods mean that the analysis is often considered reliable, also this is
useful because it is appropriate for situations where systematic, standardised
comparisons are needed likewise in the article. Where the authors compare low
discount vs no discount on essential to non-essential product. The advantage of
legitimate quantitative data, that is data which is collected rigorously, using
the appropriate methods and analysed critically, is in its reliability (ACAPS,
2012: 6) Furthermore there is one more strength like “Quantitative analysis
techniques such as graphs, charts and statistics allow us to do this, helping
us to explore, present, describe and examine relationships and trends within
our data” (Saunders, Lewis and Thornhill, 2016). The limitation to this
research method is that quantitative research is the context of the study or
experiment is ignored (Jones, 2017). Quantitative research does not study
things in a natural setting or discuss the meaning things have for different
people as qualitative research does. Another disadvantage is that a large
sample of the population must be studied; the larger the sample of people
researched, the more statistically accurate the results will be. The results
which may be achieve may differ from day to day, which will be unreliable to
the research. “Replicability and generalisability. This means that over a
quarter of the sample do not feel that it is crucial for the researcher to be
able to generalise findings to a population and nearly 40% feel that the
ability to reproduce findings is not a crucial issue” (Bryman, Becker and Sempik, 2008).

The conclusion which are drawn are that it has helped people understand various
reasons for low price discount which affects purchase propensity. As discussed
previously, the boomerang effect only occurs when the purchase is nonessential
and the discount is low, and hence the perceived transaction value is also low.
Therefore, if the perceived transaction value was to be increased, then the
boomerang effects should disappear or even reverse. There are no such problems which aren’t addressed but the question which
really comes up is do price discount solve customer service issues? Consider
product positioning before choosing a discount pricing strategy. Consumers
associate low price with low quality, particularly when the brand name is not
familiar. Pursuing a discount pricing strategy increases the chance that your
product will be perceived as lower in quality. While you may gain customers who
make decisions on price alone, other customers may choose competitor products
because of perceived quality. Low prices may drive sales for a limited time,
but do not build customer loyalty



4. The authors have achieved what they set out to do, by
using references from other sources to back up their point for e.g. they
support their point by saying “While this is supported by prior findings” and
using a source to back up their point. They have given evidence such a graphs and
tables for stronger analysis. Things which has went well are that the authors
have used reputable sources as , Articles in journals are usually regarded as
the most reputable sources as, in order to be published, they have to be
reviewed and selected by other leading academic  (Cottrell, 2011). Which
gave strength to the authors point. The authors also compares many case studies
and product for e.g. skittles, which was on discount and one was on original price.
Which worked well as it compared each other. By doing many case studies it made
the authors point stronger and overall a strong article. This are what went
well. The limitation to this paper is that, it has some weak flaws in the
research for e.g. “we did not have access to the actual frequency with which
the promotions were offered by the retailer” which shows that the authors were
not able to fully back up their research as some evidence is not obtainable.
Which shows lack in research, as it could be a key evidence to their research
if they would have obtained it. Furthermore some research which they conducted
could not repeatable. If the outcomes were similar, this increases the
probability that the findings are reliable. (Cottrell, 2011, p.131


It is concluded that the boomerang effect occurs because of the effect
of manipulations has on perceived acquisition and transaction values. Consumers
do not have a need to purchase nonessential products at the current moment, and
hence transaction value could provide a good justification for making this
purchase. When no discount is on offer, perceived transaction value is assessed
based on the original price that is well within the norm of prices for similar
products, and so transaction value is not low.  The basic boomerang effect
for nonessential purchases—with smaller volumes, purchase likelihoods are lower
with low (vs. no) discounts. . In addition to analysing
secondary as our findings show, the answer to the seemingly simple question
that was raised at the beginning of this article is not that simple after all.
Results from the scanner panel data set and five laboratory studies demonstrate
that low price discounts backfire when consumers purchase small packages of
nonessential products.







ACAPS (2012) Qualitative
and Quantitative Research Techniques for Humanitarian Needs Assessment.

Bryman, A., Becker, S. and
Sempik, J. (2008). Quality Criteria for Quantitative, Qualitative and Mixed
Methods Research: A View from Social Policy. International Journal of
Social Research Methodology, 11(4), pp.261-276.

Cai, F., Bagchi, R. &
Gauri, D. K. (2016) ‘Boomerang Effects of Low Price Discounts: How Low Price
Discounts Affect Purchase Propensity’. Journal
of Consumer Research, 42 (5), 804-816.

Cottrell, S.
(2011). Critical Thinking Skills. 2nd ed. Basingstoke: Palgrave Macmillan,
(2015). When to apply qualitative and quantitative research. online
Available at:
Accessed 11 Dec. 2017.

Jones, C.
(2017). Advantages & Disadvantages of Qualitative & Quantitative
Research | Synonym. online Available at:
Accessed 11 Dec. 2017.

 Loewenstein, G.
(1994). The psychology of curiosity: A review and
reinterpretation. Psychological Bulletin, 116(1), pp.75-98.

Pettinger, T.
(2016). Cite a Website – Cite This For Me. online
Available at:
Accessed 11 Dec. 2017.

(2016). ebook university of Lancaster, pp.2-2. Available at:
Accessed 11 Dec. 2017.

Saunders, M., Lewis, P. and
Thornhill, A. (2016). Research methods for business students. 7th ed.
harlow: Pearson Education Limited, p.496.

V?duva, M. (2015).
Consumption And Demand For Goods. International conference KNOWLEDGE-BASED