Traditional economic theory suggests that consumers are likely to prepay for a product/service that appears to be heavily discounted. However, in reality, many consumers do not think and act to achieve that goal. This is evident in consumer's psychological and behavioral responses toward a new type of price promotion, namely social coupons (SCs)(ie, online coupons that offer consumers a substantial discount with a long redemption period when they prepay for a retailer's products/services). Such responses generate vital impacts not only on consumers themselves in terms of saving maximization but also on service retailers (eg, sit-down dining restaurants) and SC providers (eg, Groupon and LivingSocial) in terms of revenue maximization generated from offering SC campaigns. This dissertation aims to provide insights to the literature in price promotions, specifically SCs. Guided by mental accounting theory (ie, consumers open a mental account when costs are incurred and close a mental account when benefits are received), this dissertation is structured in the form of two separate empirical essays. While Essay 1," Prepaying Less is Preferable to Saving More: The Role of Pain of Prepayment Aversion in Social Coupon Purchasing Decision", focuses on opening a SC mental account (ie, cost incurred), Essay 2," Superfluous Spending: The Role of Neglected Mental Budget Depletion in Spending Decision when Redeeming Social Coupons", focuses on closing a SC mental account (ie, benefit received).