Believability and consumer perceptions of implausible reference prices in retail advertisements (original) (raw)

Advertised reference prices in an Internet environment: Effects on consumer price perceptions and channel search intentions

Journal of Interactive Marketing, 2003

This research examines the effects of inclusion of a reference price in an Internet advertisement on consumer price perceptions and price-search intentions both (1) on the Internet and (2) in brickand-mortar retail channels. Proposed differences between Internet sites and brick-and-mortar channels are examined across three studies using different methodologies: (1) a survey administered in a classroom setting, (2) an Internet survey, and (3) a mail panel survey. Findings show that both price perceptions and price-search intentions differ for the Internet and brick-and-mortar retail

Reference Price and Price Perceptions: A Comparison of Alternative Models

Journal of Consumer Research, 2001

Reference price effects on consumer price perceptions are often explained by Helson's adaptation-level theory, in which the cognitive representation of reference price is the prototype of the relevant category. However, recent conceptualizations and empirical evidence suggest the possibility of an exemplar model, which may be specified using Volkmann's range theory or Parducci's range-frequency theory.

Reference Price and Price Perceptions: A Comparison of Aitemative Models

Reference price effects on consumer price perceptions are often explained by Helson's adaptation-level theory, in which the cognitive representation of reference price is the prototype of the relevant category. However, recent conceptualizations and empirical evidence suggest the possibility of an exemplar model, which may be specified using Volkmann's range theory or Parducci's range-frequency theory.

The Availability and Use of Internal Reference Prices in Evaluating Advertised Deals

Journal of Promotion Management, 1999

The marketing literature has provided considerable evidence concerning consumers' use of external reference prices in the context of advertising deal evaluations, with little emphasis placed on internal reference prices. This study focuses on the internal reference price construct and presents a multidimensional conceptualization with historicallmarket-based and aspirational dimensions. Furthermore, recognizing the practical need to consider consumer antecedent variables,

Effects of shopping information on consumers’ responses to comparative price claims

Journal of Retailing, 2002

This article describes three studies that examine the effects of shopping information on consumers' responses to comparative price claims in retail advertisements. Results of the studies show that 1) the opportunity to shop across retail stores reduces the effect of comparative price claims on consumers' estimates of lowest price for a particular item, but has less impact on their estimates of the store's regular price; 2) access to advertising from competing retailers has the same pattern of effects; and 3) across exposure to a series of ad claims, these effects generalize from estimates of specific item prices to judgments of the store's general pricing. For branded shopping goods, the results show that comparative price claims may prove counterproductive for retail advertisers by leading consumers to believe that the store's regular prices are high without convincing them that its sale prices are low.

Anchoring effects of advertised reference price and sale price: The moderating role of saving presentation format

Journal of Business Research, 2006

This study investigates how consumers utilize an advertised reference price and the posted sale price (SP) as anchors to adjust their internal reference prices (IRP). As expected, the effect of SP on IRP depends on the magnitude and direction of deviation from the IRP. When the posted SP exceeds IRP, it exerts an upward pressure on IRP, whereas when it falls below IRP, it has a negative impact. Consistent with prior research, consumers rely at least partially on the advertised reference price to adjust their IRP. The saving presentation format also moderates the effects of gains and losses on IRP but does not influence offer evaluation directly. Results suggest that retailers can enhance evaluations directly by pricing their products appropriately relative to consumers' IRP and indirectly through the choice of saving presentation format.