TITLE:
Research on Mechanism of Distributors’ Frequent Ordering Intention: A Prospect Theory Perspective
AUTHORS:
Bingqun Cui, Yuping Li
KEYWORDS:
Mechanism, Ordering Intention, Prospect Theory
JOURNAL NAME:
Modern Economy,
Vol.6 No.11,
November
13,
2015
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.