UNDERSTANDING PURCHASE REGRET THROUGH CONSUMER PSYCHOLOGY: A MODEL FOR DISCOUNT STRATEGIES

Abstract

The Steadily Increasing Discount (SID) manipulates scarcity (availability of the product) and the upcoming discount schedule to maximize profit and move merchandise; on the other hand, such discount strategies can boost sales for brands but can also create regret among customers by purchase or maybe non-purchase. Regret is a negative emotion that occurs when people realize that their present situation would have been better if they had chosen differently, but the purchase regret can be minimized if customers have a strong relationship with the brand. For this descriptive review of the literature a comprehensive database search and applying inclusion criteria, highly impact research articles were incorporated for this conceptual review. It provides insights on how strong brand identification might either increase or decrease the consumer purchase regret and correspondingly affects their repurchase intentions as well. So, this study threw light on post-purchase regret and the moderating role of brand identification to minimize purchase regret and stimulate repurchase intentions. A consumer brand relationship must play a significant role in overcoming consumer financial resistance by dipping down the apparent financial risk and releasing their money anxiety. This article reviews the regret theory and consumer brand identification theory to investigate the effects of external reference points of consumer characteristics on repurchase behaviors and explores how price consciousness, materialism, confirmation, and attractiveness of alternatives influences purchase regret. The results of the review showed that the concept of consumer purchase regret has changed over time as consumer behavioral changes progress. This study will help both managerial and academicians to understand this concept.