Marketing tactics discouraging price search: Deception and competition
AbstractRetailers attempt to assure consumers that their deals are bargains using a variety of marketing tactics. Because consumers continue information and price searches until satisfied with the amount of the information to make a purchase, such bargain assurances (BAs) can change consumers' shopping behavior. This article identifies twelve common BAs and reviews extant marketing literature to derive evidence of how BAs affect consumers' purchasing behavior. It then examines how these practices are regulated to prevent consumer deception or a reduction in competition. This article concludes by offering three policy recommendations: BAs influence consumers and require regulation; the regulation of BAs demands a comprehensive rather than a piecemeal approach; and consumer policy should facilitate and encourage accurate price comparisons.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Business Research.
Volume (Year): 64 (2011)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jbusres
Deception Pricing Competition Marketing tactics Search behavior Legal;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rajiv Lal & Ram Rao, 1997. "Supermarket Competition: The Case of Every Day Low Pricing," Marketing Science, INFORMS, vol. 16(1), pages 60-80.
- Johnson, Eric J. & Payne, John W. & Bettman, James R., 1988. "Information displays and preference reversals," Organizational Behavior and Human Decision Processes, Elsevier, vol. 42(1), pages 1-21, August.
- Mobley, Mary F & Bearden, William O & Teel, Jesse E, 1988. " An Investigation of Individual Responses to Tensile Price Claims," Journal of Consumer Research, University of Chicago Press, vol. 15(2), pages 273-79, September.
- Inman, J Jeffrey & Peter, Anil C & Raghubir, Priya, 1997. " Framing the Deal: The Role of Restrictions in Accentuating Deal Value," Journal of Consumer Research, University of Chicago Press, vol. 24(1), pages 68-79, June.
- Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. " Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research, University of Chicago Press, vol. 17(1), pages 74-81, June.
- David R. Bell & James M. Lattin, 1998. "Shopping Behavior and Consumer Preference for Store Price Format: Why “Large Basket” Shoppers Prefer EDLP," Marketing Science, INFORMS, vol. 17(1), pages 66-88.
- Sanjay K. Dhar & Claudia González-Vallejo & Dilip Soman, 1999. "Modeling the Effects of Advertised Price Claims: Tensile Versus Precise Claims?," Marketing Science, INFORMS, vol. 18(2), pages 154-177.
- Srivastava, Joydeep & Lurie, Nicholas, 2001. " A Consumer Perspective on Price-Matching Refund Policies: Effect on Price Perceptions and Search Behavior," Journal of Consumer Research, University of Chicago Press, vol. 28(2), pages 296-307, September.
- Eric T. Anderson & Duncan I. Simester, 2001. "Are Sale Signs Less Effective When More Products Have Them?," Marketing Science, INFORMS, vol. 20(2), pages 121-142, March.
- Yadav, Manjit S, 1994. " How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment," Journal of Consumer Research, University of Chicago Press, vol. 21(2), pages 342-53, September.
- Eric T. Anderson & Duncan I. Simester, 1998. "The Role of Sale Signs," Marketing Science, INFORMS, vol. 17(2), pages 139-155.
- Byung-Do Kim & Mengze Shi & Kannan Srinivasan, 2001. "Reward Programs and Tacit Collusion," Marketing Science, INFORMS, vol. 20(2), pages 99-120, June.
- Lichtenstein, Donald R & Burton, Scot & Karson, Eric J, 1991. " The Effect of Semantic Cues on Consumer Perceptions of Reference Price Ads," Journal of Consumer Research, University of Chicago Press, vol. 18(3), pages 380-91, December.
- Kaltcheva, Velitchka D. & Winsor, Robert D. & Patino, Anthony & Shapiro, Stewart, 2013. "Impact of promotions on shopper price comparisons," Journal of Business Research, Elsevier, vol. 66(7), pages 809-815.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.