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Applying transaction utility theory to sales promotion – the impact of culture on consumer satisfaction

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Customer satisfaction is known to have a positive impact on market share and satisfaction levels may be moderated by factors such as price sensitivity and perceived value. Transaction utility theory tells us that consumers make overall cognitive judgements about a price-based promotion after the experience, driving their intention to repeat the process in the future. Studies do show a link between unexpected product promotions and increased cognitive processing of satisfaction and pleasure, and other studies highlight the relationship between consumption satisfaction and culture. However, few studies consider links between culture and acquisition and transaction utility. This study examines the impact of culture on satisfaction and pleasure with, and resultant preference for, price-based sales promotion in two culturally dissimilar consumer markets, New Zealand and China. The study finds that, while transaction utility theory is supported in the collectivist market of China, it is not in the individualist market of New Zealand, suggesting a need for further investigation cross-culturally.

Keywords: China; culture; equity theory; sales promotion

Document Type: Research Article


Affiliations: 1: Department of Marketing, University of Otago, Dunedin, New Zealand 2: Department of Marketing, Victoria University, Wellington, New Zealand 3: Department of Marketing, Kazakhstan Institute of Management, Economics and Strategic Research, Kazakhstan, Republic of Kazakhstan

Publication date: March 15, 2014

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