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Who Does Not Love a Good Bargain?
08 NEWS
MBA Students Dive into Innovation and Sustainability at Leading Hong Kong Companies
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Research INSIGHT Research EXCELLENCE
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Upcoming EVENTS
Ina metropolis that, like Hong Kong, is teeming with savvy bargain hunters, amidst a landscape replete with shopping malls, chain outlets and family-run shops, even the mere promise of a discount on a Hello Kitty toy can stop traffic. Yet, as discounts can come in many forms, retailers are left to wonder what resonates most with shoppers. In a new paper , researchers explore whether consumers are more inclined to open their wallets when presented with a price reduction that can be seen directly on a product’s price tag or when offered a separate coupon which can be used when buying something.
As consumers, we often face choices among products in the same category, each having unique features. For instance, a store might offer discounts on various mobile phones, each with different functions and price ranges as part of a multi-products promotion. Sometimes, the price tags of these products already include a discount, like HKD50 off for phones with different screen sizes. This is known as an integrated discount. In other cases, we get a coupon of the same value that can be used to buy any phone on sale, which is called a non-integrated discount. From an economic perspective, both promotions offer the same benefit to buyers. But how do consumers respond to these alternatives?
After conducting fourteen experiments including a field study involving real purchases, the results are clear: when conducting multi-products promotions, sellers should favor offering coupons over displaying reductions on price tags, especially when trying to move higher priced products.
When customers check price tags, they usually compare the final prices after discount. However, when using coupons, customers tend to skip the somewhat complex task of calculating the final prices, referring instead to the products’ original prices. Because the numerical difference of, say, HKD 10 appears smaller between two larger numbers (e.g., the list or initial prices) than between two smaller numbers (e.g., the final prices after discount), ignoring the final prices makes the perceived price gap between the compared products smaller. This “final price neglect” – which only happens in promotions involving multiple products – makes higher-
priced options seem more appealing, although the impact is less pronounced for items considered relatively inexpensive or when promotions use a “percent-off” format. Sellers should also be aware that the “final price neglect” associated with non-integrated promotions is much less likely to occur online, where virtual “coupons” and discounted price tags often co-exist on the same web page.
While the lessons for sellers are obvious, what about the buyers? Firstly, when given a voucher, make sure to bring your calculator when you hit the store – especially when looking at pricier items – if you don’t want to be nudged into spending more than necessary. It’s also better to
shop online; the thrill of the in-store bargain hunt may be diminished, but your chances of getting a better deal are higher than when you stroll through the aisles in pursuit of that must-have item!
Dr. Yunhui HUANG Assistant Professor Department of Management, Marketing and Information Systems
A group of 60 MBA students from the Mainland China had the privilege of participating in a series of company visits in Hong Kong on 19 January. The itinerary featured stops at the China Mobile 5G Joint Innovation Center Hong Kong Open Lab, The Hong Kong and China Gas Company Limited (Towngas), and the Hong Kong Technology Venture Company Limited (HKTV). These visits offered the students valuable insights into the business landscape of Hong Kong and served as practical references for their entrepreneurial projects.
Dr. Monique Shui-Ki WAN, Associate Dean (Taught Postgraduate Studies) and the Director of the Master of Business Administration (MBA) and MSc Business Management (MScBM) programmes at the HKBU School of Business, remarked, “Spanning the telecommunications, energy, and e-commerce sectors, these company tours showcased firms that are at the forefront of innovation and sustainable development. The engagement with senior corporate executives provided our students with direct exposure to the unique contributions Hong Kong makes in these areas.”
At the “Joint Innovation Plus” Hong Kong 5G Open Lab, a China Mobile intiative, students engaged with the company’s breakthroughs in 5G technology and its innovative applications. The lab functions as a network testing hub for local business partners to conduct
application research and development. The visit enlightened students on various 5G use cases and explored the technology’s potential to revolutionize various industries, opening up new business opportunities and enhancing customer experiences. Mr. Carl SU, Associate Product Director of Education Corporate Market at China Mobile Hong Kong Company Limited, further enriched the experience by sharing his expertise in 5G technology and discussing digital literacy in today’s networked world.
The tour also included an interactive learning experience at Towngas’s Hall of Future Energy and the Towngas Hall of Innovation. Here, students were introduced to the company’s innovative endeavours, understanding the challenges encountered and the strategies implemented to overcome them. Mr. Trevor TANG, AGM – Strategy & Innovation, The Hong Kong and China Gas Company Ltd, presented “Towngas Innovation Journey”. The presentation illuminated the company’s strategic approach to innovation, shedding light on the company’s innovative tactics that drive business growth and create social impact.
A visit to HKTV provided a window into the operations of “HKTVmall”, the round-the-clock online shopping platform. A visit to HKTV provided a window into the operations of “HKTVmall,” the round-the-clock online shopping platform. The company’s integrated services span online retailing, promotional marketing, digital analytics, smart logistics, and brickand-mortar operations, forming a distinctive business ecosystem. Students witnessed the sophisticated automated systems and smart logistics in action, appreciating how HKTV efficiently handles a high volume of transactions and deliveries. Mr. Jerry TSANG, Senior Manager – Business Development at HKTV, discussed the company’s commitment to sustainability, the challenges and prospects of AI, and their strategic plans for global expansion.
Our MBA programme consistently organises insightful corporate excursions that enable students to engage with innovative practices and sustainable growth strategies of businesses in Hong Kong and Mainland China, including Tencent, Skyworth Group, DJI, among others. These experiences not only broaden their horizons but also deepen their understanding of the business world. For additional information on admissions and programme specifics, please visit our Programme page.
Dr. Zi WANG
Associate Professor
Department of Accountancy, Economics and Finance
Trade wars and industrial policy competitions: Understanding the US-China economic conflicts Journal
https://doi.org/10.1016/j.jmoneco.2023.10.012
Date
22 Mar 2024
14:00-15:30
WLB 602
1 Mar 2024
13:00-17:30
WLB 602
4 Mar 2024
13:00-17:30
WLB 602
7 Mar 2024
10:30-12:00
WLB 602
6 Mar 2024
9:00-10:30
Zoom
Speaker
Topic
Accountancy, Economics & Finance
Prof. Chen ZHAO
University of Hong Kong Logic-Based Updating
Management, Marketing, and Information Systems
Prof. Gordon CHEUNG
Management and International Business University of Auckland Business School
Prof. Gordon CHEUNG
Management and International Business University of Auckland Business School
Prof. Martin KILDUFF
School of Management University College London
MMIS Departmental WorkshopEvaluating Reliability, Discriminant and Convergent Validity of Measurement Scales in Empirical Studies
MMIS Departmental WorkshopModeration and Moderated Mediation with Mplus
Seminar on Star Connections Buffer the Effects of Work Performance on Career Outcomes
Joint with CEIBS, NTU, and NUS
7 Mar 2024
16:00-17:30
Zoom
Joint with Monash, NTU, and RUC
20 Mar 2024
16:00-17:30
Zoom
Joint with Kyoto, NTU, Osaka, and Sinica
27 Mar 2024
16:00-17:30
Zoom
Joint with CEIBS, NTU, and NUS
25 Apr 2024
16:00-17:30
Zoom
Joint with Monash, NTU, and RUC
Prof. Joseph TORIGIAN
American University Prestige, Manipulation, and Coercion
Prof. Ganesh VISWANATHNATRAJ
University of Warwick
Blockchain Currency Markets
Prof. Péter ESÖ
University of Oxford
Prof. Jamus Jerome LIM
ESSEC Business School
Evidence Disclosure in Competitive Markets
Dr. Reinhold KESLER
University of Zurich
Institutional Development, Capital Accumulation, and the Emergence of Civilizations
Existence, Antecedents and Consequences of Non-Compliance in Mobile App Markets
The Research Espresso, a bimonthly e-publication covering everything you need to know about the latest research developments at the HKBU School of Business, focuses on four key areas: Research Insights (the main research topic of the month), Research Excellence (recognition of faculty members’ research achievements), News (research-related updates), and Seminars (sharing research skills and knowledge).
The idea is to provide business practitioners with the most recent research findings from the School‘s faculty. We want to build links between research and practice and to ensure that the School's research has business and societal impact.
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