Publication Type
Journal Article
Version
acceptedVersion
Publication Date
4-2025
Abstract
This research documents how introducing redemption tasks requiring a token (i.e., trivial) amount of effort—for instance, by asking the consumer to enter a promo code or solve a CAPTCHA to receive a discount—increases price promotion effectiveness compared with equivalent straight discounts (i.e., applied automatically). Eight studies (including two field experiments) and three additional Web Appendix studies provide robust evidence for the beneficial effect of token-effort requirements on redemption rates. This effect occurs because the easy-to-attain redemption task induces a high perceived return on effort. Thus, this effect only occurs when the redemption task requires token-type effort but not when it is effortful. This research offers costless and easy-to-implement managerial recommendations for boosting the promotional effectiveness of price promotions.
Keywords
price promotion, discounts, redemption effort, return on effort, conversion rates, behavioral pricing
Discipline
Advertising and Promotion Management | E-Commerce | Marketing
Research Areas
Marketing
Publication
Journal of Marketing Research
First Page
1
Last Page
17
ISSN
0022-2437
Identifier
10.1177/00222437251338050
Publisher
SAGE Publications
Citation
ZHANG, Kuangjie; ALLARD, Thomas; AGRAWAL, Nidhi; and BAGCHI, Rajesh.
The Token-Effort Effect: Trivial redemption effort increases price promotions effectiveness. (2025). Journal of Marketing Research. 1-17.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7734
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1177/00222437251338050