Shopper Search in Response to Conditional Promotions: A Function of Basket Sizes and Incentive Types

ABSTRACT Conditional promotions are designed to entice consumers to increase their basket sizes to meet a preset promotional threshold. In this research, we examine consumers' basket sizes, promotional thresholds, incentive framing and seemingly irrelevant cues in shopping environment as the factors that may jointly influence the effectiveness of a conditional promotion in inducing shoppers to increase their basket sizes. Our findings from five studies demonstrate that (i) the difference between basket sizes and promotional thresholds or seemingly irrelevant cues in shopping environment may induce an experience of psychological distance, (ii) the experience of psychological distance may interact with incentive framing to influence consumers' search likelihood in response to a conditional promotion such that psychological proximity (remoteness) leads to higher search likelihood in response to negatively (positively) framed incentives. We found that this effect is consistent across studies with different values of basket sizes and promotional thresholds and across behavioral and self‐reported measures representing search likelihood.