Effects of price discount on consumers’ perceptions of savings, quality, and value for apparel products: mediating effect of price discount affect

Abstract

IntroductionA price discount is a very prevalent marketing strategy to attract consumers by providing an extra value or incentive, which encourages consumers to purchase the promoted products immediately (Yin and Huang 2014). In marketing research, theoretical models have been developed to investigate the relationship between price and customers' perceptions of products, and two well-known models in the pricing literature are the pricequality-value model (Monroe and Krishnan 1985) and the means-end model (Zeithaml 1988). According to these models, price increases both perceived quality and perceived AbstractExtending the price-quality-value model (Monroe and Krishnan in The perception of merchandise and store quality 1985) and means-end model (Zeithaml in J Mark 52:2-22, 1988), we developed a conceptual model to investigate the mediating role of price discount affect (feeling aroused by price discounts) in the relationship between price discounts and consumers' perceptions (perceived savings, quality, and value) and in the relationship between perceived value and purchase intentions in the context of online apparel products. A between-subject experimental design with four levels of price discounts (10, 30, 50, and 70%) was used. Jeans were selected as the product stimulus. Web pages were developed to create a fictional online store and to collect data. A total of 209 usable responses were collected by a research firm in the United States, and structural equation modeling was performed to analyze the data. The results showed that price discount affect played an important mediating role in the relationship between price discounts and consumers' perceptions. When the direct effect of price discounts on perceived quality was examined, consumers perceived the apparel product with higher discounts as lower quality (i.e., a negative direct relationship). However, when price discount affect served as a mediator, the feelings created by a price discount led to a positive perception of product quality (i.e., a positive indirect relationship). By considering the influence of price discount affect, our model provides a better understanding of the effect of price discounts on consumers' perceptions of apparel products. Keywords: Apparel, Price discount, Quality, AffectOpen Access © The Author(s) 2018. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creat iveco mmons .org/licen ses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. Lee and Chen-Yu Fash Text (2018) Lee and Chen-Yu Fash Text (2018) 5:13 sacrifice (the sacrifice of paying more), and the trade-off between perceived quality and perceived sacrifice affects perceived value. When the price is high, consumers perceive that the quality of the product is high. With respect to price discounts, accordin...

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