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Promotional discounts such as premium promotion and price cut may have a great impact on consumer willingness to buy and this kind of promotion being popular nowadays. Product promotions are an important element to attract consumers (Gauri, Ratchford, Pancras, & Talukdar, 2017), and the use of price promotion has risen steadily (DelVecchio, Krishnan, & Smith, 2007). To analyse the impact of promotion, most researches has focused on using price framing (Khan & Dhar, 2010; Mishra & Mishra, 2011; Darke & Chung, 2005), some of them focused on the promotion discounts (Krishna, Briesch, Lehmann, & Yuan 2002; Burman & Biswas 2004) and also on premium promotion (d’Astous & Jacob, 2002; Chang, 2009). Promotional frames increased consumers perceptions of the deal value (Darke & Chung, 2005), alternative price frames are evaluated differently by consumers because the perceived promotion value influences the consumers to deal reaction (Krishna et al., 2002). Discount framing interacts to differentially affect both the immediate value and persistence of consumers price estimates (DelVecchio, Lakshmanan, & Krishnan, 2009).
As price promotion becoming more popular, then every manufacturer needs to set a strategy targeting consumer attention to buy their products. Companies are continuously seeking opportunities to reach new customers more effectively (Kim, Natter, & Spann, 2014). Price discounts are quite costly to use, and marketers need to adjust what consumers want and what promotion is suitable (Palazon & Delgano-Ballester, 2009). In line with previous research, the impact of premiums on purchase behavior is systematically lower than that of equivalent price cuts; also, premiums can be more profitable for manufacturers because the cost is smaller (Foubert, Breugelmans, Gedenk, & Rolef, 2018). In the development of promotion, managers not only learn how to make decisions in the discount depth but also how to frame it whether it is on monetary (such as price discounts or price cuts) or nonmonetary (such as sampling or free gift) promotion because it influences to the way consumers react to the product (DelVecchio, Krishnan, & Smith, 2007). Price discounts are by far the most usual form of sales promotion employed by marketers, and their use has steadily increased in recent years (Darke & Chung, 2005).
Past research indicated that there is a relationship between culture and marketing (Lim & Ang, 2008), also between culture and product choice (Veeck & Burns, 2005), but not for promotional discount and culture, so this study examines the effect of culture on promotional discounts (premium promotions and price cuts). For example, in Taiwan, price discounts are useful for functionally positioned products while premium strategy may be considered for symbolically positioned products (Li, Yang, & Liang, 2015). ‘Blibli.com’ is one of popular online shopping in Indonesia, as they celebrate birthday together with customers, they provide a promotion program that is a gift with the purchase, point rewards, and flash sale on a purchase of gadget, fashion, electronics (Detiknews, 2015). Postmodern consumer different country brings to existing understanding that increasing in the consumption experiences which are grounded into structural frames (Skandalis, Byrom, & Banister, 2019). Studying the influence of cultural conditioning is instructive as marketers become more attuned to the influence of country effect on marketing, such knowledge is especially important for marketers targeting consumers from diverse countries (Ang & Lim, 2006).