Interaction effects of different price claims and contextual factors on consumers' reference price adaptation after exposure to a price promotion

Silke Bambauer-Sachse and Laura Massera

Journal of Retailing and Consumer Services, 2015, vol. 27, issue C, 63-73

Abstract: This paper examines the effects of price claims on consumers' reference price (RP) adaptation for specific saving formats and after repeated exposure to a price promotion. The reduced (initial reference) price has stronger (weaker) effects with more exposures in the case of the percentage-off format. The initial reference (the reduced) price has stronger (weaker) effects with more exposures in the case of the amount-off format. The findings provide insights to retailers as to how they can avoid strong RP reductions subsequent to a price promotion. The theoretical contribution consists of presenting a new model that goes beyond previous studies that have focused on the direct effects.

Keywords: Price promotion; Reference price; Reduced price; Saving format; Repeated exposure (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:27:y:2015:i:c:p:63-73

DOI: 10.1016/j.jretconser.2015.07.005

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