The Effect of Price Promotion Patterns on Consumers’Use of an Expected Price as a Reference Price

摘要

Retailers offer one of”Low Price Guarantees”(LPGs)or”Price Match Guarantees”(PMGs)to signal their price position in the marketplace.Past literature has assumed that both LPGs and PMGs work similarly as signals of low prices, and consequently, LPGs and PMGs have been used interchangeably in both research and practice.In this paper, we examine the differential effect of LPGs versus PMGs on consumers’evaluations.Further, we examine if individual differences relating to consumers’regulatory orientation moderate the above. We report results of two studies using over 250 undergraduate participants.In Study 1, we examine the differences in pre-purchase intentions for LPGs versus PMGs, contingent on whether consumers are promotion(vs.prevention)focused.In Study 2, we examine a post-purchase scenario wherein consumers discover a lower price elsewhere, and then we specifically examine differences in repurchase intentions for LPGs versus PMGs, again contingent on whether consumers are promotion(vs.prevention)focused.