 Hidden price promotions: Could retailer price promotions backfire?Wenjing Li, David M. Hardesty, Adam W. Craig and Lei Song Journal of Retailing and Consumer Services, 2022, vol. 64, issue C Abstract: Hidden-price promotions, a type of uncertain price promotion in which the final price is not revealed when consumers first encounter the product, have been recently adopted by retailers. However, current research suggests that hidden-price promotions have the potential to backfire and result in reduced consumer purchase intention. Across seven studies, we reveal that hidden-price promotions can be effective but risk increasing discount expectations, as consumers expect a large discount. Only when the discount level meets or exceeds inflated expectations does the excitement built by the promotion positively impact purchase intention. For cognitive purchases, even without providing a high discount, hidden-price promotions are as effective as traditional ones. This research provides guidelines for retailers that want to employ hidden-price promotions. Keywords: Hidden-price promotions; Discount expectations; Discount levels; Cognitive purchase; Affective purchase (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:64:y:2022:i:c:s0969698921003635 DOI: 10.1016/j.jretconser.2021.102797 Access Statistics for this article Journal of Retailing and Consumer Services is currently edited by Harry Timmermans More articles in Journal of Retailing and Consumer Services from Elsevier |
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