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Interaction effects of different price claims and contextual factors on consumers' reference price adaptation after exposure to a price promotion

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  • Bambauer-Sachse, Silke
  • Massera, Laura

Abstract

This paper examines the effects of price claims on consumers' reference price (RP) adaptation for specific saving formats and after repeated exposure to a price promotion. The reduced (initial reference) price has stronger (weaker) effects with more exposures in the case of the percentage-off format. The initial reference (the reduced) price has stronger (weaker) effects with more exposures in the case of the amount-off format. The findings provide insights to retailers as to how they can avoid strong RP reductions subsequent to a price promotion. The theoretical contribution consists of presenting a new model that goes beyond previous studies that have focused on the direct effects.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:joreco:v:27:y:2015:i:c:p:63-73
    DOI: 10.1016/j.jretconser.2015.07.005
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    References listed on IDEAS

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    5. Büyükdağ, Naci & Soysal, Ayşe Nur & Ki̇tapci, Olgun, 2020. "The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
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    7. Kim, Jungkeun, 2019. "The impact of different price promotions on customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 95-102.
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    9. Thayse Schneider Silva & Marcelo Gattermann Perin & Rafael Luis Wagner & Kenny Basso, 2019. "The influence of advertisement repetition on price image in the context of higher education services," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 342-352, August.
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