Boomerang Effect Analysis

Introduction
This essay looks at the “Boomerang Effect Of Low Price Discounts” and how low price discounts affect purchase propensity. This essay further looks into the rationale of the journal article by Fengyan Cai, Rajesh Bagchi and Dinesh K. Gauri on the purpose of the article and what interest this may have for the readers from the author's view as the article questions consumers mindset on purchasing characteristics and habits. The essays continues to look at what the authors main points that are being conveyed with extensive research and statistics as evidence for their claims to show the “Boomerang Effect”. Furthermore, the essay contains critically reviews of the outcomes of the research the authors provided and what conclusions can be made al well as evidence to consumers purchasing propensity and how this evidence can be applied to improve aspects of society. Strengths and limitations of their journal article will be assessed with consistency of well researched evidence and to which is there any faults, further looking at similar …show more content…
Cai et al, further looks at the transactional value when purchasing a non essential product which induces a pleasure, to which this shows that consumers are attracted to non essential products with a low price discount, therefore affecting purchase propensity. To which on the other hand, consumers enjoy a low price discount on essential products leading to high purchases as finding a good deal can lead to positive emotions during the transaction. This is supported with “ Hence, subsequent emotions are positive. Positive emotions reported in advantaged (price) inequality situations are happiness, gratitude, and pride.” (Gelbrich,