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Effects of Expiration Date-Based Pricing on Brand Image Perceptions

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  • Theotokis, Aristeidis
  • Pramatari, Katerina
  • Tsiros, Michael

Abstract

Expiration date-based pricing (EDBP) occurs when a grocery retailer reduces the price of a perishable product according to its remaining shelf life. While, conventional wisdom suggests that this practice leads to negative consumer evaluations of brand quality, a series of field experiments reveal negative effects on brand quality perceptions only among loyal consumers and those who perceive low risk associated with perishables. The effect is also mediated by consumer distrust (Study 1). In addition, EDBP has no effect on brand quality image if consumers are already familiar with this pricing practice (Study 2), and it may even generate positive consumer evaluations when framed as a cause-related marketing activity to reduce waste (Study 3). Additional evidence indicates that psychological contract violation perceptions provide the underlying mechanism for explaining consumer responses to EDBP (Study 4). This article ends with an agenda for further research and implications for retail practice.

Suggested Citation

  • Theotokis, Aristeidis & Pramatari, Katerina & Tsiros, Michael, 2012. "Effects of Expiration Date-Based Pricing on Brand Image Perceptions," Journal of Retailing, Elsevier, vol. 88(1), pages 72-87.
    • Handle: RePEc:eee:jouret:v:88:y:2012:i:1:p:72-87
    DOI: 10.1016/j.jretai.2011.06.003
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    1. Gabler, Colin B. & Myles Landers, V. & Reynolds, Kristy E., 2017. "Purchase decision regret: Negative consequences of the Steadily Increasing Discount strategy," Journal of Business Research, Elsevier, vol. 76(C), pages 201-208.
    2. Clara Cicatiello & Luca Secondi & Ludovica Principato, 2019. "Investigating Consumers’ Perception of Discounted Suboptimal Products at Retail Stores," Resources, MDPI, vol. 8(3), pages 1-10, July.
    3. Li, Tongzhe & Messer, Kent D. & Kaiser, Harry M., 2020. "The impact of expiration dates labels on hedonic markets for perishable products," Food Policy, Elsevier, vol. 93(C).
    4. Riquelme, Isabel P. & Román, Sergio & Cuestas, Pedro J. & Iacobucci, Dawn, 2019. "The Dark Side of Good Reputation and Loyalty in Online Retailing: When Trust Leads to Retaliation through Price Unfairness," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 35-52.
    5. Waheed Kareem Abdul, 2023. "Probing permanent price reduction strategy of manufacturer brands: pre- and post-purchase perceptions," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 455-469, December.
    6. Afshar-Nadjafi, Behrouz, 2016. "The influence of sale announcement on the optimal policy of an inventory system with perishable items," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 239-245.
    7. Wilson, Norbert L.W. & Rickard, Bradley J. & Saputo, Rachel & Ho, Shuay-Tsyr, 2015. "Food Waste: The Role of Date Labels, Package Size, and Product Category," Working Papers 250016, Cornell University, Department of Applied Economics and Management.
    8. Birau, Mia M. & Faure, Corinne, 2018. "It is easy to do the right thing: Avoiding the backfiring effects of advertisements that blame consumers for waste," Journal of Business Research, Elsevier, vol. 87(C), pages 102-117.
    9. Hoang Viet Nguyen & Wilson Dang & Hoang Nguyen & Thi Nguyen Hong Nguyen & Thi My Nguyet Nguyen & Tuan Duong Vu & Ninh Nguyen, 2021. "How Does Environmental Interpretation Affect Psychological Well-Being? A Study Conducted in the Context of COVID-19," Sustainability, MDPI, vol. 13(15), pages 1-15, July.
    10. Choi, Kang Jun & Jia, He Michael & Lee, Jae Young & Kim, B. Kyu & Kim, Keunwoo, 2022. "Hedonic myopia: Emphasizing hedonic benefits of non-perishable food makes consumers insensitive to expiration dates in food purchase," Journal of Business Research, Elsevier, vol. 138(C), pages 193-202.
    11. Richards, Timothy J. & Hamilton, Stephen F., 2018. "Food waste in the sharing economy," Food Policy, Elsevier, vol. 75(C), pages 109-123.
    12. Lorenzo Compagnucci & Alessio Cavicchi & Francesca Spigarelli & Lorenza Natali, 2018. "A multi-stakeholder attempt to address food waste: The case of Wellfood Action EU project," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(3), pages 503-528.
    13. Ouesleti, Bilel & Costa-Font, Montserrat & Kallas, Zein & Chema Gil, Jose Maria, 2015. "Determinant Factors Affecting The Point of Purchase Selection: valuation and Perceptions," 2015 Conference, August 9-14, 2015, Milan, Italy 212603, International Association of Agricultural Economists.
    14. Malhotra, Neeru & Sahadev, Sunil & Purani, Keyoor, 2017. "Psychological contract violation and customer intention to reuse online retailers: Exploring mediating and moderating mechanisms," Journal of Business Research, Elsevier, vol. 75(C), pages 17-28.
    15. Dye, Chung-Yuan, 2020. "Optimal joint dynamic pricing, advertising and inventory control model for perishable items with psychic stock effect," European Journal of Operational Research, Elsevier, vol. 283(2), pages 576-587.
    16. Woo, Hongjoo & Chung, Angie & Richey, Robert Glenn & Hopkins, Christopher & Lee, Kangbok, 2022. "Product-flyer location and type of product categories in retailing," Journal of Business Research, Elsevier, vol. 138(C), pages 146-160.
    17. Dorota Zielińska & Beata Bilska & Katarzyna Marciniak-Łukasiak & Anna Łepecka & Monika Trząskowska & Katarzyna Neffe-Skocińska & Marzena Tomaszewska & Aleksandra Szydłowska & Danuta Kołożyn-Krajewska, 2020. "Consumer Understanding of the Date of Minimum Durability of Food in Association with Quality Evaluation of Food Products After Expiration," IJERPH, MDPI, vol. 17(5), pages 1-19, March.
    18. Hagtvedt, Henrik & Patrick, Vanessa M., 2016. "Gilt and Guilt: Should Luxury and Charity Partner at the Point of Sale?," Journal of Retailing, Elsevier, vol. 92(1), pages 56-64.
    19. Ouidade Sabri & Van Doan Hai & Faten Malek & Hager Bachouche, 2019. "When Is Transparent Packaging Beneficial?," Working Papers 2019-006, Department of Research, Ipag Business School.
    20. Chairy Chairy & Chandra Raharja & Jhanghiz Syahrivar & Mahjus Ekananda, 2020. "Waste not: selling near-expired bread in Indonesia," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 17(4), pages 391-407, December.
    21. Chairy Chairy & Chandra Raharja & Jhanghiz Syahrivar & Mahjus Ekananda, 0. "Waste not: selling near-expired bread in Indonesia," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 0, pages 1-17.
    22. Yang, Xiying & Hua, Guowei & Cheng, T.C.E. & Zhang, Li & Zhang, Yi & Xu, Yadong, 2022. "Buy two and get X% off: Quantity discount under consumers’ anticipated regret," International Journal of Production Economics, Elsevier, vol. 250(C).

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