Discount Doubts About Veterans’ Discounts

Why did consumer evaluations of a T-shirt turn negative when a prominent American flag image was added to the plain green shirt’s front? Was it because the study was based at China’s Zhejiang University and Shanghai University of International Business and Economics, where there could be anti-American sentiment? Probably not, since the study participants were all from the U.S. Maybe it was because the colors in the flag clashed with the color of the shirt. No, that explanation seems inadequate, too, since the same findings held when the item was a tote bag, an insulated beverage bottle, or shoes carrying other colors.
     Additional studies indicated that the real reason had to do with the consumers, ranging in age from 18 to 66 years, seeing the addition of the flag as a contrived appeal to patriotism. The researchers described the study participants’ reaction as outrage.
     If the flag image followed the words “Made in,” the negative bias faded. Then the flag was no longer a shallow gesture. A still meatier appeal to patriotism is to honor military veterans by offering special privileges such as discounts. Study results from Middle Tennessee State University argue strongly for doing this. Both the veterans receiving the special consideration and people who don’t qualify will build positive attitudes toward the retailer. Tapping into the patriotism of the consumers strengthened agreement with statements like “I have a more favorable attitude toward businesses that give discounts to active military and veterans than those that do not” and “I am willing to pay more for products if it means that active military and veterans will be able to get discounts.”
     As a general rule, you should exercise caution when favoring one set of shoppers. The unfavored can feel cheated. But there’s more. When you tell a customer they’re receiving a price discount, they’ll build good will toward your store. If you add that the discount isn’t available to every other customer, the good will might be even greater. Or your announcement might make the customer uncomfortable.
     Researchers at University of Oregon and University of British Columbia analyzed situations in which a consumer receives preferential treatment in front of fellow consumers. Unless the reward could be shared, most recipients were less satisfied with the product or service than if the treat had been delivered outside the earshot of other shoppers.
     These concerns are unnecessary with price discounts for military veterans.

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