Children's response to sales promotions and their impact on purchase behavior

Despite the growth in children's purchasing power, surprisingly little is known about how children respond to sales promotions. We conduct two experiments to address this issue. Study 1 shows that elementary-aged (second and fifth grade) children's purchase decisions are influenced by the presence of sales. Study 2 demonstrates that both age groups favor conceptually easier promotions, even when the sale is inferior. Additionally, we find that children have difficulty applying mathematical concepts to sales promotions, regardless of classroom mastery of the associated operations. Together, these results indicate that elementary-aged children routinely incorporate sales into purchase decisions, sometimes with suboptimal results.