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Bargain effectiveness in differentiated store environments: The role of store affect, processing fluency, and store familiarity

Doucé, Lieve, Kim Willems and Arjun Chaudhuri

Journal of Retailing and Consumer Services, 2022, vol. 69, issue C

Abstract: Two main types of value have been established in the retail literature: merchandise value based on the quality and price of a store's offerings and differentiation value based on the extent of atmospheric cues in the environment. However, it is not clear what happens when a store offers both types of value to a high degree. We investigate how offering a bargain (or price cut) affects consumer responses for high and low differentiation store environments. In two studies, using a simulated store environment in a behavioural laboratory, we find that the presence of bargains in a highly differentiated store environment negatively influences store affect and, in turn, approach behaviour. This effect, however, only holds true for low familiarity stores and can be explained by processing fluency theory. Consequently, retailers focusing on store environment differentiation should reconsider their use of bargains.

Keywords: Merchandise value; Differentiation value; Store atmospherics; Affect; Processing fluency; Approach behaviour; Familiarity (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:69:y:2022:i:c:s0969698922001783

DOI: 10.1016/j.jretconser.2022.103085

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