IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v15y2008i3p211-223.html
   My bibliography  Save this article

Evaluating consumer response to EDLPs

Author

Listed:
  • Bailey, Ainsworth Anthony

Abstract

This paper reports on an investigation of factors influencing consumer response to every-day low prices (EDLP) policies. In study 1, an experimental study, sale proneness was found to have a significant effect on attitude toward EDLP and patronage intentions for the store implementing a new EDLP policy. Store loyalty affected patronage intentions but not attitude toward the EDLP. While there were no significant interactions between sale proneness and store loyalty, follow-up univariate tests revealed that consumers’ level of sale proneness has an impact on attitude toward the EDLP policy when store loyalty is low but not when store loyalty is high. In a follow-up survey, a number of predictions regarding the relationships among sale proneness, store loyalty, and income level and the dependent variables of attitude toward EDLP, attitude toward the retailer, and patronage intentions were made and tested. Support was found for all but two of the 9 hypotheses. Implications of the findings for retailers and future research agendas are discussed.

Suggested Citation

  • Bailey, Ainsworth Anthony, 2008. "Evaluating consumer response to EDLPs," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 211-223.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:3:p:211-223
    DOI: 10.1016/j.jretconser.2007.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698907000732
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2007.08.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gupta, Sunil & Cooper, Lee G, 1992. "The Discounting of Discounts and Promotion Thresholds," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(3), pages 401-411, December.
    2. Aradhna Krishna, 1992. "The Normative Impact of Consumer Price Expectations for Multiple Brands on Consumer Purchase Behavior," Marketing Science, INFORMS, vol. 11(3), pages 266-286.
    3. Mobley, Mary F & Bearden, William O & Teel, Jesse E, 1988. "An Investigation of Individual Responses to Tensile Price Claims," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 273-279, September.
    4. Laroche, Michel & Pons, Frank & Zgolli, Nadia & Cervellon, Marie-Cecile & Kim, Chankon, 2003. "A model of consumer response to two retail sales promotion techniques," Journal of Business Research, Elsevier, vol. 56(7), pages 513-522, July.
    5. 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.
    6. Garretson, Judith A. & Burton, Scot, 2003. "Highly Coupon and Sale Prone Consumers: Benefits Beyond Price Savings," Journal of Advertising Research, Cambridge University Press, vol. 43(2), pages 162-172, June.
    7. Lichtenstein, Donald R & Netemeyer, Richard G & Burton, Scot, 1995. "Assessing the Domain Specificity of Deal Proneness: A Field Study," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 22(3), pages 314-326, December.
    8. Liefeld, John & Heslop, Louise A, 1985. "Reference Prices and Deception in Newspaper Advertising," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(4), pages 868-876, March.
    9. Mulhern, Francis J. & Leone, Robert P., 1990. "Retail promotional advertising : Do the number of deal items and size of deal discounts affect store performance?," Journal of Business Research, Elsevier, vol. 21(3), pages 179-194, November.
    10. Alford, Bruce L. & Biswas, Abhijit, 2002. "The effects of discount level, price consciousness and sale proneness on consumers' price perception and behavioral intention," Journal of Business Research, Elsevier, vol. 55(9), pages 775-783, September.
    11. Aradhna Krishna, 1994. "The Impact of Dealing Patterns on Purchase Behavior," Marketing Science, INFORMS, vol. 13(4), pages 351-373.
    12. Lafferty, Barbara A. & Goldsmith, Ronald E., 1999. "Corporate Credibility's Role in Consumers' Attitudes and Purchase Intentions When a High versus a Low Credibility Endorser Is Used in the Ad," Journal of Business Research, Elsevier, vol. 44(2), pages 109-116, February.
    13. Rajiv Lal & Ram Rao, 1997. "Supermarket Competition: The Case of Every Day Low Pricing," Marketing Science, INFORMS, vol. 16(1), pages 60-80.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jagrook Dawra & Kanupriya Katyal, 2023. "Decoding price promotions: a moderated mediation model of fairness, trust, and deal proneness," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 248-265, August.
    2. Praharsi, Yugowati & Wee, Hui-Ming & Sukwadi, Ronald & Padilan, Marivic V., 2014. "Small-independent retailers vs. organized retailers: An empirical study in Indonesian economics of service industries," Journal of Retailing and Consumer Services, Elsevier, vol. 21(2), pages 108-117.
    3. Septianto, Felix & Lee, Michael SW. & Putra, Pragea Geldoffy, 2021. "Everyday “low price†or everyday “value†? The interactive effects of framing and construal level on consumer purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    4. Kacen, Jacqueline J. & Hess, James D. & Walker, Doug, 2012. "Spontaneous selection: The influence of product and retailing factors on consumer impulse purchases," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 578-588.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Teck-Hua Ho & Christopher S. Tang & David R. Bell, 1998. "Rational Shopping Behavior and the Option Value of Variable Pricing," Management Science, INFORMS, vol. 44(12-Part-2), pages 145-160, December.
    2. Eisenbeiss, Maik & Wilken, Robert & Skiera, Bernd & Cornelissen, Markus, 2015. "What makes deal-of-the-day promotions really effective? The interplay of discount and time constraint with product type," International Journal of Research in Marketing, Elsevier, vol. 32(4), pages 387-397.
    3. Gázquez-Abad, Juan Carlos & Martínez-López, Francisco J., 2016. "Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 263-273.
    4. Gauri, Dinesh K. & Ratchford, Brian & Pancras, Joseph & Talukdar, Debabrata, 2017. "An Empirical Analysis of the Impact of Promotional Discounts on Store Performance," Journal of Retailing, Elsevier, vol. 93(3), pages 283-303.
    5. Palazon, Mariola & Delgado-Ballester, Elena, 2011. "The expected benefit as determinant of deal-prone consumers' response to sales promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 18(6), pages 542-547.
    6. Lindsey-Mullikin, Joan & Petty, Ross D., 2011. "Marketing tactics discouraging price search: Deception and competition," Journal of Business Research, Elsevier, vol. 64(1), pages 67-73, January.
    7. Carlson, Jeffrey R. & Kukar-Kinney, Monika, 2018. "Investigating discounting of discounts in an online context: The mediating effect of discount credibility and moderating effect of online daily deal promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 153-160.
    8. Bambauer-Sachse, Silke & Massera, Laura, 2015. "Interaction effects of different price claims and contextual factors on consumers' reference price adaptation after exposure to a price promotion," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 63-73.
    9. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
    10. Volpe, Richard J., III, 2011. "Evaluating the Performance of U.S. Supermarkets: Pricing Strategies, Competition from Hypermarkets, and Private Labels," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-16, December.
    11. Ray, Sourav & Snir, Avichai & Levy, Daniel, 2023. "Retail Pricing Format and Rigidity of Regular Prices," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1-1.
    12. Aniko Ory, 2016. "Consumers on a Leash: Advertised Sales and Intertemporal Price Discrimination," Cowles Foundation Discussion Papers 2047, Cowles Foundation for Research in Economics, Yale University.
    13. Béatrice Parguel & Pauline de Pechpeyrou & Ouidade Sabri-Zaaraoui & Pierre Desmet, 2007. "Format Effects in Volume Discounts to Consumers," Post-Print halshs-00145917, HAL.
    14. Hyeong Kim & Thomas Kramer, 2006. "“Pay 80%” versus “get 20% off”: The effect of novel discount presentation on consumers’ deal perceptions," Marketing Letters, Springer, vol. 17(4), pages 311-321, December.
    15. Jamal, Ahmad & Peattie, Sue & Peattie, Ken, 2012. "Ethnic minority consumers' responses to sales promotions in the packaged food market," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 98-108.
    16. Kukar-Kinney, Monika & Xia, Lan, 2017. "The effectiveness of number of deals purchased in influencing consumers' response to daily deal promotions: A cue utilization approach," Journal of Business Research, Elsevier, vol. 79(C), pages 189-197.
    17. repec:dgr:rugsom:99b35 is not listed on IDEAS
    18. Carlo Russo & Rachael Goodhue, 2018. "Farmgate prices, retail prices, and supermarkets' pricing decisions: An integrated approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 24-43, December.
    19. Richard C. Hanna & Scott D. Swain & Paul D. Berger, 2016. "Optimizing time-limited price promotions," Journal of Marketing Analytics, Palgrave Macmillan, vol. 4(2), pages 77-92, July.
    20. Souiden, Nizar & Chaouali, Walid & Baccouche, Mona, 2019. "Consumers’ attitude and adoption of location-based coupons: The case of the retail fast food sector," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 116-132.
    21. Foubert, Bram & Gijsbrechts, Els, 2010. "Please or Squeeze? Brand performance implications of constrained and unconstrained multi-item promotions," European Journal of Operational Research, Elsevier, vol. 202(3), pages 880-892, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:15:y:2008:i:3:p:211-223. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.