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Similar to traditional luxuries, affordable luxuries enjoy a high level of perceived product quality and perceived social status, but the effectiveness of price promotions of purchasing affordable luxury products is different from that of traditional luxuries. In order to further investigate the purchases of affordable luxuries, we used event-related potential (ERP) technology to reveal the formation of the purchase intention toward affordable luxuries at original prices (high or low) and current prices (discounted or non-discounted). Compared with the high-priced affordable luxury without a price promotion and the low-priced affordable luxury with a price promotion, consumers showed a stronger intention toward the high-priced affordable luxury with a price promotion, by weighing up three factors, perceived product quality, perceived social status, and perceived monetary saving at the behavioral level. A shorter reaction time emerged in the price promotion condition than in the absent price promotion condition when the original price was low. At the neural level, a decrease in N2 amplitude was found in the high original price and discounted current price condition than the high original price and non-discounted current price condition and the low original price and discounted current price condition, respectively, suggesting that the price information of the latter two conditions might not be the expectation information of subjects, and thus, the enhanced conflict is produced. The high-priced affordable luxury product without a price discount evoked a more positive LPP amplitude than the high-priced affordable luxury product with price promotions or than the low-priced affordable luxury item without price promotions, demonstrating that participants could regard the former as an evaluative inconsistent condition and the latter as evaluative consistent conditions. These results are helpful to better understand the effects of price promotions on purchasing affordable luxury products at different original prices. [ABSTRACT FROM AUTHOR]

There is a connection between the frontal negative slow wave (FNSW) and the arousal inhibition in the hedonic purchase context. To calculate the FNSW (400–800 ms), event-related potentials (ERPs) method was applied to depict the neural substrates on prudent and impulsive consumers' behaviors within various states of promotion. Promotion types include the pure price promotion and the mixed promotion (a mixture of a charitable donation and a discount). Behaviorally, consumers response more quickly in the pure price promotion condition and they express a preference for the mixed promotion. More importantly, a larger FNSW emerged in the impulsive consumers than the prudent, suggesting that the former might tend to control their eagerness to consume hedonic items. Compared with the price promotion as the worse option, the mixed promotion as the better option caused more perceptual conflict, leading to an increase in N2 amplitude. It suggests that consumers incline to reject the worse offers. These results also reveal that people primarily have to search negative promotion information by their insight and subsequently impulsive consumers inhibit the responses to the promotion information. The method of ERPs and FNSW should be helpful for marketing researchers and professionals on hedonic consumption and sales promotion. [ABSTRACT FROM AUTHOR]