The price facade: Symbolic and behavioral price cues in service environments

Verhoeven, Joost W.M.; Rompay, Thomas Johannes Lucas van; Pruyn, Adriaan T.H.

doi:10.1016/j.ijhm.2009.03.013

Cited by 23 publications

(9 citation statements)

References 78 publications

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“…We therefore assume that accentuation increases the perceived pleasure. As outlined above, inferences drawn from pleasure result in an inferior (more expensive) price perception and better quality perception (e. g., Baker et al 2002;Grewal and Baker 1994;Verhoeven et al 2009) and pleasure also increases the shopping intention (e. g., Ha and Lennon 2010;Sherman et al 1997). Furthermore, customers might characterise stores with accentuated lighting as more upscale, which directly signals an inferior (more expensive) price perception and better quality perception.…”

Section: Brightness and Accentuationmentioning

confidence: 99%

“…Inference theory assumes that individuals use information cues to make inferences in situations with incomplete information and which they cannot assess directly (Nisbett and Ross 1980). A pleasant store atmosphere can serve as a cue for higher prices and superior quality (e. g., Baker et al 1994;Baker et al 2002;Grewal and Baker 1994;Verhoeven et al 2009). Hence, when brightness has a positive impact on the store atmosphere, it results indirectly in a more expensive price level and better quality perception.…”

Section: Brightness and Accentuationmentioning

confidence: 99%

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Effects of Illumination on Store Perception and Shopping Intention: Shedding Light on Conflicting Theories

Zielke¹,

Schielke²

2016

MAR

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This paper analyses how store lighting influences store atmosphere, price and quality perception, and the intention to shop in a retail store. A first experiment shows how the brightness and accentuation of lighting influence these dependent variables. The findings demonstrate that brightness especially results in higher pleasure and shopping intention, while for price and quality perception inferences via pleasure and direct categorisation effects cancel each other out. Accentuation has marginally significant positive effects on perceived pleasure and quality perception. A second experiment shows that warm orange light (compared to cool blueish light) results in greater quality perception and shopping intention via greater pleasure. However, this effect exists only when colours are saturated, but not for pastel colours. We recommend that retailers optimize their lighting concept based on our findings after filtering options, which fit with their positioning and store design concept.

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Section: Brightness and Accentuationmentioning

confidence: 99%

Section: Brightness and Accentuationmentioning

confidence: 99%

Effects of Illumination on Store Perception and Shopping Intention: Shedding Light on Conflicting Theories

Zielke¹,

Schielke²

2016

MAR

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“…Consumers may even evaluate a service organization's capacity by just assessing tangible factors. [23] For instance, patients feel comfortable, sitting and relaxing in gardens, which are situated inside hospitals. [24] In addition, staff, physical surroundings, atmospheric environment and wayfinding positively affect consumers' experience, loyalty and willingness to spend more for healthcare services.…”

Section: Healthcare Servicescapes Literaturementioning

confidence: 99%

Servicescapes in Healthcare: A qualitative study on the elderly’s perception of an aged care facility

Pham

Hossain³

et al. 2020

APJHM

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Objective: The paper aims to understand how the elderly perceive the healthcare services of their aged care facilities. This paper explores different dimensions of servicescape elements, which ultimately affect the development of healthcare services. Design: Both naturalistic observations and in-depth interviews were conducted to discover the perceptions servicesape elements. Results: The authors discovered that servicescape elements rely not only on physical, social and socially symbolic dimensions but also on cultural dimensions. Conclusions: This study uses the elderly home context in City of Harlingen, Rio Grande Valley, Texas, USA, and finds support to Rosenbaum and Massiah [1]’s multidimensional model and suggests improvements in servicescape elements. We found that factors such as ambience, signage, layout, and socially symbolic structure at the aged care facility, were highly appreciated by the elder residents. Other factors such as privacy, quiet environment, and social interactions among patients via group activities require improvements and further attention. Findings of the study can be generalized in other similar social contexts, particularly in improving Asia Pacific region’s healthcare services.

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“…Consequently, the reference price is the price that the customer applies to compare and resolve whether a product is expensive or cheap (Gupta and Kim, 2010; Monroe, 1973). The customer establishes the reference price based on information about previous prices, contextual variables and future price expectations when making a purchase decision, considering the economic conditions, consumer characteristics, feelings and all the information available at the time of choosing (Verhoeven et al , 2009). Furthermore, the reference price is expected to be within the acceptable price range, and price limits are slightly “shaped” by the prices to which they are exposed all through their shopping event (Kosenko, 2015).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Setting acceptable prices: a key for success in retailing

Cataluña

Escobar‐Pérez

Moreno-Prada³

2019

SJME

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Purpose This research enables the authors to highlight the importance of proper pricing for retailers. The purpose of this paper is to demonstrate the importance of demand-based pricing, providing empirical results that reveal the validity of this pricing philosophy in the sport retailing industry. In particular, this study has identified the limits of acceptable prices for the products studied, selected the most appropriate method for pricing products suffering from high competition and compared the impact produced on price perceptions according to different retail environments to be able to relate changes in the acceptable prices ranges according to the geographical location of each point of sale, differentiating between rural or urban environment and type of client. Design/methodology/approach The authors have carried out surveys of 350 customers in each of the three points of sale analysed. Therefore, there are a total of 1,050 interviewees, for the three products analysed. The direct method of acceptable prices setting is developed. In addition, ANOVA and t-test have been carried out to find differences between the three shops. Findings One main finding is that the acceptable price range is not unique. Each point of sale has one that is distinct because it depends on many factors: the competition, the economic capacity of the closest residents, the location of the point of sale or the ability to attract customers. Originality/value The foremost contribution of this paper is to demonstrate empirically how considering the local demand at setting prices would generate larger earnings, even for a small retail chain. The direct method of setting acceptable prices enables us to set the prices according to the demand. The best option is if these prices are above the costs. It can be noted that the prices should be set according to each shop, and a different price used in each point of sale to maximise profits and to adapt to what the typical customer of each shop is willing to pay, despite the products being the same and the points of sale belonging to the same retail chain.

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The price facade: Symbolic and behavioral price cues in service environments

Cited by 23 publications

References 78 publications

Effects of Illumination on Store Perception and Shopping Intention: Shedding Light on Conflicting Theories

Effects of Illumination on Store Perception and Shopping Intention: Shedding Light on Conflicting Theories

Servicescapes in Healthcare: A qualitative study on the elderly’s perception of an aged care facility

Setting acceptable prices: a key for success in retailing

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