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Effects of price reduction sale ads on consumer responses

Effects of price reduction sale ads on consumer responses An experiment was conducted in which level of claim (plausible versus implausible), claim type (tensile versus objective), and brand familiarity were manipulated to determine consumer responses to sale ads. Conducted in an Asian setting using percentage instead of dollar value price reductions, the results replicated and extended past findings in the pricing literature. Specifically, implausible claims that purported exaggerated savings led to greater discounting, higher perceived price reduction, higher perceived offer value, and higher shopping intention than those with plausible price reductions. Objective price claims that state the exact amount of reduction generally elicited more favorable responses than tensile claims of the “save up to ____ percent” genre. When the price reductions were implausible, tensile claims resulted in higher discounting, lower perceived price reduction, and lower perceived offer value than did objective claims. Finally, greater brand familiarity resulted in higher claim discounting and lower perceived price reduction when the claims were implausible rather than plausible. Theoretical and managerial implications are furnished together with directions for future research. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Pricing Strategy and Practice Emerald Publishing

Effects of price reduction sale ads on consumer responses

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Publisher
Emerald Publishing
Copyright
Copyright © 1997 MCB UP Ltd. All rights reserved.
ISSN
0968-4905
DOI
10.1108/09684909710171891
Publisher site
See Article on Publisher Site

Abstract

An experiment was conducted in which level of claim (plausible versus implausible), claim type (tensile versus objective), and brand familiarity were manipulated to determine consumer responses to sale ads. Conducted in an Asian setting using percentage instead of dollar value price reductions, the results replicated and extended past findings in the pricing literature. Specifically, implausible claims that purported exaggerated savings led to greater discounting, higher perceived price reduction, higher perceived offer value, and higher shopping intention than those with plausible price reductions. Objective price claims that state the exact amount of reduction generally elicited more favorable responses than tensile claims of the “save up to ____ percent” genre. When the price reductions were implausible, tensile claims resulted in higher discounting, lower perceived price reduction, and lower perceived offer value than did objective claims. Finally, greater brand familiarity resulted in higher claim discounting and lower perceived price reduction when the claims were implausible rather than plausible. Theoretical and managerial implications are furnished together with directions for future research.

Journal

Pricing Strategy and PracticeEmerald Publishing

Published: Sep 1, 1997

Keywords: Advertising; Consumer behaviour; Price discounts; Sale prices

References

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