Price promotions are commonly used by retailers to motivate consumers to make a purchase. Both the amount off and percentage off are in widespread use, and research on when to use each method has been mixed. The current study evaluated intent to purchase for a lower- and higher-priced item using either a fixed amount or a percentage off. For the lower-priced item, participants saw a promotion for balloons regularly selling for 48 pesos, but on sale with either a 12-peso or a 25% discount. The higher-priced item was a 480-peso sweater on sale with either a 120-peso discount or a 25% discount. One hundred and fifty-one students were randomly assigned to the treatments and responded to two questions measuring value perceptions: “I would be saving a lot of money if I made my purchase at this store,” and “This store is selling the advertised product at a considerable discount.” Participants answered each question on the scale 1 (“strongly disagree”) to 5 (“strongly agree”)
