A Business Model of Purchase Stimulus on the Consumer Intention to Buy Products Under Volume Discount Through Consumer Behavior Factors 1

Abstract: The importance of sales promotion has increased dramatically as the purchasing power of money has gone up ever before in developing and developed countries. Malaysia is one of the biggest sales promotion markets where the highest proportion of 81% is driven by retailers in the year 2009 as compared to 77% in 200877% in (Nielsen, 2010. Volume discount is an attractive promotion strategy among Malaysian consumers and is commonly prevalent in the market. Volume discount includes four components namely Buy one get one free (BOGO), Buy one and get next one with 50% discount, up to 50% extra volume and coupons which give extra volume on repurchase. The retailers in the market arbitrarily adopt volume discount without prior information on the purchase stimulus and consumer behavior pattern on the intention to buy products. In the current article, a robust and innovative model has been proposed to explain how the purchase stimulus and consumer behavior factors influence on the consumer intention to purchase products which will in turn help retailers to implement volume discount strategy in the right direction