The regulatory fit effect on consumer preferences for price discounts and bonus packs

Although prior research suggests that a bonus pack is perceived as a pure gain and is thus preferred by consumers over a price discount which is perceived as a reduction in loss, the empirical evidence in the literature is mixed about whether consumers prefer price discounts or bonus packs. This research investigates how consumers' regulatory orientation influences their preferences for these two promotional tactics. The authors proposes that prevention-oriented consumers prefer a price discount over a bonus pack, but promotion-oriented consumers prefer a bonus pack over a price discount. This effect is due to the regulatory fit between the promotional tactic and consumers' regulatory orientation. A price discount aligns with a prevention orientation to minimize losses, while a bonus pack aligns with a promotion orientation to maximize gains. Furthermore, the authors propose that this regulatory fit effect on preferences is sequentially mediated by the experience of feeling right and perceived value of the promotional tactics. Four studies using different products and different operationalizations of regulatory orientation in both field and online settings provide converging and robust evidence for the proposed effect and underlying mechanism. Finally, the authors show that the proposed effect is attenuated when consumers' level of involvement increases.