Promoting a product without increasing the promotion budget: How chance in promotions can heighten consumer demand

Abstract

This research proposes a new promotional selection method, showing in seven laboratory studies, one field experiment, and five supplemental studies that consumers prefer promoted hedonic products when a company selects which products to promote using chance rather than more traditional intentional methods. This preference arises because consumers can perceive chance selection as fun and consequently view a company engaging in such chance selection as more fun. We find converging evidence for this preference, demonstrating the effect on consumer intentions, click-through rates, and real consumption decisions, while ruling out a variety of alternative explanations. Importantly, because this increased preference is driven by heightened hedonic perceptions, we find that this preference emerges for hedonic products but not for utilitarian products, for which more traditional selection methods are preferred.