Risky discounts differ from other discount formats in that the actual discount level is determined by chance (e.g., “scratch & save” cards). Four studies investigated whether consumers prefer to receive risky discounts on a per-purchase or per-item basis. Although these options do not differ...

The purchase of luxury goods is relatively exclusive, limited, and often merely hypothetical. Thus, luxury goods may be perceived as more psychologically distant than ordinary goods. Based on the link between psychological distance and abstract mental representation, we hypothesized and found in...