The psychological impact of discount on consumer purchasing decision a case study of Pick n Pay: UNANIMOUS OY
Elhag, Rama (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025112329232
https://urn.fi/URN:NBN:fi:amk-2025112329232
Tiivistelmä
The thesis explores the psychological impact of discounts on consumer purchasing decisions, a case study at Pick n Pay, Rauma Finland. The study examines how discounts emotionally influence consumers and how these emotions lead to changes in their buying behaviour, especially when a customer is exposed to a significant discount, it creates various feelings such as, urgency, fear of missing out and excitement. Moreover, these emotions influence consumers shopping habits leading to impulsive buying, especially among Finnish customers aged 18 - 70.
The objective of the study is to determine whether discounts actually psychologically influence purchasing decision in Finnish retail stores, or not, as well as how Finnish consumers perceive discount offers, to provide insights that help Pick n Pay and similar businesses to develop more effective and ethical pricing strategies. To better understand how consumers behaviour among the target group, a quantitative research approach including an online survey was used.
The theoretical framework draws on Prospect theory and Consumer decision-making theory, both theories which helped to better understand the emotional and logical phases of Finnish consumers behaviour when making a purchasing decision. Furthermore, according to prospect theory, consumers feel losses more deeply than the same size gains, meanwhile consumer decision- making theory highlights the journey individuals go through from needing a product, to information search, comparing options, purchase, and finally evaluating the purchase afterwards. However, both theories predicted that dis-counts can interrupt some of these stages in the decision making process.
Analysing both theoretical data and survey findings, the research shows that discounts have a significant impact on consumer’s emotions such as fear of missing out, excitement, and sense of urgency, leading to impulsive buying and shaping consumers mind. On the other hand, the survey shows that big discounts and limited time offers affect consumers more, because it triggers emotions such as urgency that lead to fear of missing out on a good deal making consumers more likely to purchase unnecessary items.
The objective of the study is to determine whether discounts actually psychologically influence purchasing decision in Finnish retail stores, or not, as well as how Finnish consumers perceive discount offers, to provide insights that help Pick n Pay and similar businesses to develop more effective and ethical pricing strategies. To better understand how consumers behaviour among the target group, a quantitative research approach including an online survey was used.
The theoretical framework draws on Prospect theory and Consumer decision-making theory, both theories which helped to better understand the emotional and logical phases of Finnish consumers behaviour when making a purchasing decision. Furthermore, according to prospect theory, consumers feel losses more deeply than the same size gains, meanwhile consumer decision- making theory highlights the journey individuals go through from needing a product, to information search, comparing options, purchase, and finally evaluating the purchase afterwards. However, both theories predicted that dis-counts can interrupt some of these stages in the decision making process.
Analysing both theoretical data and survey findings, the research shows that discounts have a significant impact on consumer’s emotions such as fear of missing out, excitement, and sense of urgency, leading to impulsive buying and shaping consumers mind. On the other hand, the survey shows that big discounts and limited time offers affect consumers more, because it triggers emotions such as urgency that lead to fear of missing out on a good deal making consumers more likely to purchase unnecessary items.