Promotion deals and price reductions are common strategies retailers use to attract consumers. We investigate which of two common types of deals better captures consumers' attention. By tracing eye movements, we examine participants' attention allocation when deciding between “buy-one-get-one free” (BOGO) deals versus deals that offer an equivalent price reduction. Results show that people prefer BOGO deals, and they tend to choose them over price reductions even when the deals are equal in terms of net value. The preference is amplified when the discount is relatively high: In these cases, BOGO deals attract more attention than percentage deals. Overall, our findings can help retailers develop promotional strategies to capture potential consumers' attention in online commerce. At the same time, our results warn consumers to better evaluate their options and not be lured by the first BOGO deal that captures their attention, as it might not be the best deal available.
- Online commerce
- Promotion deals