Effects of low price guarantees on consumer post-purchase search intention: The moderating roles of value consciousness and penalty level

Dutta, Sujay Kumar; Biswas, Abhijit

doi:10.1016/j.jretai.2005.08.001

Cited by 75 publications

(53 citation statements)

References 22 publications

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“…Second, if less favorable consumer outcomes result from a default, can consumer confidence in the retailer be restored if consumers receive the promised refund? In three experiments, we investigate these questions and reexamine recent suggestions that using LPG as a tool to influence consumer prepurchase cognitions and behavior, without considering its potential postpurchase effects, may limit the signal's long-term benefits (Dutta & Biswas, 2005;Estelami, Grewal, & Roggeveen, 2007). In addition, we contribute to the literature by applying attribution theory (Folkes, 1988;Weiner, 2000) to propose that an LPG default prompts consumers to attribute such default to probable causes and perceptions about the seller are based on analysis of such causes.…”

Section: Introductionmentioning

confidence: 94%

Low price signal default: an empirical investigation of its consequences

Dutta

Biswas

Grewal

2007

J. of the Acad. Mark. Sci.

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Low-price guarantees (LPG) signal the market position of a seller's offer price and promise to compensate consumers in case that information is erroneous. In this research, we demonstrate that when retailers default on the information provided by an LPG, consumer perceptions of the retailer suffer, but the extent of the damage depends on the conditions associated with the default. On the basis of attribution theory, we posit that consumers may attribute default to the retailer's opportunism but emphasize this attribution differently in various default conditions. Furthermore, we show that the restoration of consumer perceptions after a refund depends on consumers' focus in terms of the signal itself. If they consider the protective, compensatory function of a low price signal, their postrefund outcomes are more favorable; when they focus on the informational function, these outcomes are less favorable. We discuss the theoretical and practical implications of these findings.

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Section: Introductionmentioning

confidence: 94%

Low price signal default: an empirical investigation of its consequences

Dutta

Biswas

Grewal

2007

J. of the Acad. Mark. Sci.

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“…Sinha and Batra (1999) also found that price consciousness was a significant reason driving consumers to buy store brands in some categories more often than in others. In particular, prior research in sales promotions has suggested that price consciousness moderated the effects of low price guarantees on consumers' pre-purchase evaluations, behavioral intentions (Dutta and, Biswas, 2005), and store loyalty (Kukar-Kinney and Walters, 2003).…”

Section: Researches On Coupon Proneness and Price Consciousnessmentioning

confidence: 99%

The Role of Moderating Factors in Mobile Coupon Adoption: An Extended TAM Perspective

Jayasingh¹,

Eze²

2010

CIBIMA

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This research represents a theoretical extension of the extended Technology Acceptance Model (TAM) to study the consumer adoption of mobile coupons. We developed a model to test the relationship between theoretical constructs spanning technological and cognitive influence processes and their impact on Behavioural Intention. This study aims to integrate price consciousness and value consciousness into the promotional effectiveness framework. The results of the study indicate that perceived usefulness and perceived ease of use influence attitude, which in turn influences the intention to use m-coupons. Social influence and compatibility play a major role in influencing the intention to use mobile coupons. The key objective of this research paper is to study the role of value consciousness and price consciousness as moderating variable in predicting the customer intention to use mobile coupons. The high value conscious and price conscious customers indicate more interest in redeeming m-coupons than other customers. This result confirms that in the mobile technology context, traditional adoption models such as TAM could be applied but needs to be modified and extended in order to increase their prediction and explanation power.

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“…Kukar-Kinney et al (2007) suggest that there exists a group of "less price-conscious" consumers who purchase from a PMG retailer to avoid costly prepurchase search because prepurchase search cost is high compared with the gain from search. Dutta and Biswas (2005) investigate the moderating role of value consciousness in the relationship between PMG and consumers' postpurchase search intentions. They find that consumers who have "high value consciousness" are prone to conduct postpurchase search, as the benefit from postpurchase search exceeds its cost.…”

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confidence: 99%

Price-Matching Guarantees with Endogenous Consumer Search

2017

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Abstract. Price-matching guarantees (PMGs) are offered in a wide array of product categories in retail markets. PMGs offer consumers the assurance that, should they find a lower price elsewhere within a specified period after purchase the retailer will match that price and refund the price difference. The goal of this study is to explain the following stylized facts: (1) many retailers that operate both online and offline implement PMG offline but not online; (2) the practices of PMG vary considerably across retail categories; and (3) some retailers launch specialized websites that automatically check competitors' prices for consumers after purchase. To this end, we build a sequential search model that endogenizes consumers' pre-and postpurchase search decisions. We find that PMG expands retail demand but intensifies price competition on two dimensions. PMG drives retailers to offer deeper promotions because it increases the overall extent of consumer search, which we call the primary competition-intensifying effect. We also find a new secondary competition-intensifying effect, which results from endogenous consumer search. As deeper promotions incentivize consumers to continue price search, retailers are forced to lower the "regular" price to deter consumers from searching. The strength of the secondary competition-intensifying effect increases with the ratio of product valuation to search cost, which explains the variation in PMG practices online versus offline and across retail categories. We show that an asymmetric equilibrium exists such that one retailer offers PMG while the other does not. In this equilibrium, the PMG retailer may benefit from launching a price check website to facilitate consumers' postpurchase search.History: Accepted by J. Miguel Villas-Boas, marketing.

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Effects of low price guarantees on consumer post-purchase search intention: The moderating roles of value consciousness and penalty level

Cited by 75 publications

References 22 publications

Low price signal default: an empirical investigation of its consequences

Low price signal default: an empirical investigation of its consequences

The Role of Moderating Factors in Mobile Coupon Adoption: An Extended TAM Perspective

Price-Matching Guarantees with Endogenous Consumer Search

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