Project Report
On
Effect of discount offer on customer buying behaviour
Submitted in Partial Fulfillment for the Award of the
Degree of MBA (G) 2024-26
Under the Guidance of: Submitted By:
Ms Neha Solanki Mahi jain
04912303924
DELHI INSTITUTE OF ADVANCED STUDIES
Plot No. 6, Sector-25, Rohini, Delhi-110085
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(Approved by AICTE and Affiliated with GGSIP University for B. Com (H), BBA, MBA & MBA
(FM) Programmes)
(An ISO 9001:2015 Certified Institution)
CERTIFICATE (ISSUED BY THE COLLEGE)
CHAPTER 1:
INTRODUCTION
TO COMPANY AND TOPIC
1.1 Introduction to the Topic
Discount offers are among the most commonly used promotional tools by businesses to
influence consumer purchase decisions. In a highly competitive retail environment—both
online and offline—brands use a variety of discounts to attract customers, increase sales
volume, and enhance customer retention. These may include percentage discounts, buy-one-
get-one-free (BOGO) offers, seasonal sales, cashback schemes, and festival-based promotions.
Consumers today are highly aware and often wait for discount seasons before making a
purchase. This behaviour is largely influenced by pricing strategies, perceived value, and
urgency created by limited-time offers. Marketers leverage this consumer psychology to boost
impulse buying, clear inventory, or increase customer engagement.
This project focuses on analyzing the effect of such discount offers on the buying behaviour of
consumers, particularly within the retail and e-commerce sectors.
1.2 Introduction to the Companies
This study includes both online and offline retail companies known for using promotional
offers effectively:
• Amazon India: A leading e-commerce platform offering regular discounts, flash sales,
and festival deals like the Great Indian Festival and Prime Day.
• Flipkart: A key online competitor known for major sales such as The Big Billion Days,
offering heavy discounts across categories.
• Reliance Retail: A major offline retail chain using combo offers, bulk discounts, and
seasonal sales to attract customers across its various formats.
• Big Bazaar (Now part of Reliance): Previously known for Wednesday Bazaar and
festive deals, it was popular for value shopping and discount offers.
These companies serve as the basis for understanding how discounts influence consumer
buying decisions in both online and offline retail sectors
1.3 Need for the Study
In the current market scenario, discounts have become a strategic necessity rather than just a seasonal
trend. Understanding how discount offers impact consumers helps businesses:
• Plan effective promotional strategies
• Improve conversion rates
• Retain customers and reduce cart abandonment
• Predict market demand during offer periods
This study helps identify the factors that drive consumer interest during discounts and the extent to
which it influences buying behaviour.
1.3 Purpose of the Study
The main goal of this project is to find out how discount offers influence people’s shopping
habits. Are they just helpful in getting quick sales, or do they actually help brands build long-
term customer loyalty? By studying this, businesses can get better ideas on how to design their
offers in a way that keeps customers happy and helps their brand grow.
1.4 Objectives of the Study
1. To analyze the impact of discount offers on consumer buying behaviour.
2. To determine the types of discount offers that influence customers the most.
3. To study whether discount offers lead to brand switching or brand loyalty.
4. To assess consumer preferences regarding discounted and non-discounted products.
5. To evaluate the role of psychological pricing and urgency created by discounts.
1.5 Scope of the Study
• The study focuses on consumers in Delhi NCR.
• It targets the age group of 18–35 years who actively shop online or offline.
• Retail sectors considered: Fashion, electronics, groceries, lifestyle products.
• The project includes analysis of primary data (questionnaire-based survey) and
secondary sources such as reports, articles, and market studies.
1.7 Limitations of the Study
• The study is limited to a specific geographical area (Delhi NCR).
• The sample size may not be fully representative of the entire population.
• The data is based on respondents’ opinions and may include biases.
• The project does not analyze the long-term impact of discounts on consumer loyalty.
CHAPTER 2:
LITERATURE REVIEW/
REVIEW OF LITERATURE
purchase back to the consumer. These schemes elevate average order values and appeal
strongly to cost-conscious shoppers.
• Limited-Time Offers: Short-duration deals such as Flipkart’s flash sales exploit
scarcity and the fear of missing out (FOMO), compelling shoppers to act quickly.
• Bundled/Combo Deals: Packaging multiple items together at a reduced combined
price. Reliance Retail’s Reliance Fresh outlets, for example, often bundle
complementary products to boost overall sales volume.
• Loyalty-Member Discounts: Exclusive savings programs (e.g., Amazon Prime and
Flipkart Plus) that reward frequent buyers, bolster customer retention, and motivate
repeat purchases.
Overall, online retailers lean heavily on urgency-inducing formats and cashback schemes,
while brick-and-mortar outlets often prioritize flat-rate price cuts and bundled deals to deliver
immediate perceived value.
2.3 Psychological Impact of Discounts
• Perceived Value: Discounts increase consumers’ perceived value of a product
(Cialdini’s Reciprocity Principle).
• Scarcity and Urgency: Flash sales and limited offers trigger fear of missing out
(FOMO), increasing impulse buys (Tversky & Kahneman’s Loss Aversion).
• Anchoring: Consumers view the discounted price as a gain, driving purchases
(Thaler’s Mental Accounting Theory).
• Brand Loyalty vs. Price Sensitivity: Younger consumers tend to switch brands for
discounts, while older consumers value loyalty and service (Jain & Kapoor, 2024).
2.4 Consumer Demographics and Discount Sensitivity
• Age: Younger consumers are more influenced by discounts, especially online.
• Income: Higher-income individuals may prioritize quality over price, while lower-
income consumers are more price-sensitive.
• Shopping Habits: Impulse buyers respond more to discounts compared to planned
shoppers.
2.5 Effects on Brand Perception and Loyalty
Excessive discounting can diminish a brand’s perceived value, making it seem cheap rather than high-
quality (Desai & Malhotra, 2024). However, loyalty programs and cashback offers can enhance long-
term customer relationships.
2.6 Industry Examples
• Amazon India: Successful flash sales like the Great Republic Day Sale demonstrate
the power of significant discounts in driving high-ticket purchases.
• Flipkart: The Big Billion Day Sale uses deep discounts and exclusive deals to boost
sales.
• Reliance Retail: Combo offers and loyalty programs, like Big Bazaar’s Wednesday
Bazaar, attract customers seeking value.
2.7 Conclusion
Discounts are crucial in influencing consumer buying behavior, with different types having
varying effects depending on demographics and the buying context (online/offline). While
discounts drive immediate sales, excessive discounting may harm long-term brand loyalty.
