Research on Mechanism of Distributors’ Frequent Ordering Intention: A Prospect Theory Perspective

Bingqun Cui¹, Yuping Li²

¹School of Economics and Management, Southwest Jiaotong University, Chengdu, China.
²School of Business Planning, Chongqing Technology and Business University, Chongqing, China.

DOI: 10.4236/me.2015.611110                

Abstract

This article is to carry out in-depth mechanism exploration of influences of three different price promotion strategies on Distributors’ ordering intentions. This research finds out that Distributors have stronger intentions of determining ordering in the case of reward promotion rather than in threat promotion. However, among Distributors who have decided ordering, threat promotion can lead to stronger frequent ordering intention. Promotion intensity has strong adjustment effect on Distributors’ ordering intention both in reward and threat promotions. Rebates strategy has positive influence on Distributors’ intentions of both determining ordering and frequent ordering. The study reveals different price promotion strategies’ different influences on Distributors’ ordering intentions. This study provides a good reference for guiding enterprise managers’ application of price promotion.

Keywords

Mechanism, Ordering Intention, Prospect Theory

Conflicts of Interest

The authors declare no conflicts of interest.

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