The Effect of Plausible and Exaggerated Reference Prices on Consumer Perceptions and Price Search

The effect of store name, brand name and price discounts on consumers' evaluations and purchase intentions

“…Dollar esti mates provided by the respondents formed the basis for internal reference price. They were asked to estimate the bike's normal price, average market price, and a fair price (Lichtenstein and Bearden, 1989;Urbany, Bearden, and Weilbaker, 1988). Perceived brand quality was measured using six Likert statements (Dodds, Monroe, and Grewal, 1991;Rao and Monroe, 1989).…”

Regulation of information and advertising

“…In one experimental study that did find consumers deceived by price ads (Urbany et al, 1988), it was nonetheless found that there was no measurable injury even to those consumers who were deceived. Interestingly, the authors attribute their results regarding deception in part to the fact that their subjects may have believed that it is illegal to exaggerate reference prices, and that the law is strictly enforced.…”

Antecedents and consequences of price promotions effectiveness

“…Se trata de las informaciones promocionales anunciadas por las empresas, cuya finalidad es proporcionar al consumidor un punto de referencia que aumente su valor percibido con relación al producto (Cebollada y Múgica, 1997; Oubiña, 1997), y que aumente también su credibilidad (Blair y Landon, 1981;Burman y Biswas, 2004;Danny y Lee, 2005;Urbany et al, 1988). Esa credibilidad sólo será factible cuando los precios de referencia externos suministrados por las empresas no entren en conflicto con las referencias internas de los consumidores, que en nuestro estudio son, mayoritariamente, incorrectas.…”