The Quantity Integration Effect: When Integrating Purchase and Quantity Decisions Increases Sales

50 Pages Posted: 7 Feb 2018 Last revised: 14 May 2020

See all articles by Kristen Duke

Kristen Duke

University of Toronto - Rotman School of Management; University of California, San Diego (UCSD), Rady School of Management

On Amir

University of California, San Diego (UCSD) - Rady School of Management

Date Written: January 10, 2018

Abstract

Customers often must decide not only whether to purchase, but also what quantity to buy. The current research introduces and compares the quantity-sequential (QS) selling format, under which shoppers make the purchase and quantity decisions separately, with the quantity-integrated (QI) selling format, under which shoppers simultaneously indicate whether and how much to buy. Although many retailers use the QS format, we demonstrate that the QI format often earns higher purchase rates. A field experiment conducted with a large technology company found that this simple change in decision process yielded considerably higher sales of a major supplies item, amounting to an over $1M annual revenue increase. Laboratory experiments testing various product offers and shopping contexts, totaling over 18,000 experimental observations, document the robustness of this quantity integration effect. The authors detail the psychological mechanisms that contribute to this effect and identify boundary conditions.

Keywords: framing effects, consumer choice, purchase likelihood, purchase quantity

Suggested Citation

Duke, Kristen and Amir, On, The Quantity Integration Effect: When Integrating Purchase and Quantity Decisions Increases Sales (January 10, 2018). Available at SSRN: https://ssrn.com/abstract=3099746 or http://dx.doi.org/10.2139/ssrn.3099746

Kristen Duke (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

University of California, San Diego (UCSD), Rady School of Management ( email )

9500 Gilman Drive
La Jolla, CA 92093
United States

On Amir

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States
858-534-2023 (Phone)
858-534-0745 (Fax)

HOME PAGE: http://management.ucsd.edu/faculty/directory/amir/

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