Effects of Spatial Distance and Paid Card on Price Promotions

Paid card is an important mean of companies to maintain the customers and increase gain. It is applied extensively in retailing, fitness center, and by other service delivers. However, there is lack of studies focused on promotion mechanisms of paid card in the literature. In this paper, the promotion mechanisms of paid card based on the theories of mental accounting, construal level, and customer's perceived value. The study has the results that the intention to purchase of paid card holders is higher than that of the consumers without payment in advance in the same discount rate. When there is large spatial distance between paid card holder and the target store, the traffic mode will impact on the purchase intention of paid card holders. Finally, the study has provided the corresponding suggestions for companies' promotion management.