IDEAS home Printed from https://ideas.repec.org/a/nms/untern/10.5771-0042-059x-2020-4-384.html
   My bibliography  Save this article

Price discount strategies in times of increasing price transparency: How price consciousness and price comparison moderate the effect of discount strategy on store price image

Author

Listed:
  • Scheidegger, Gianluca
  • Linzmajer, Marc
  • Rudolph, Thomas

Abstract

This research uses a large set of price promotion field data to better understand the application of price discount strategies by Swiss grocery retailers. Taking the prevalence of these strategies in the Swiss grocery retail market as a basis, we use an online experiment that builds on recent developments in technology usage by consumers and investigate the impact of price comparison on store price image. The results show that Swiss grocery retailers have increased their number of discounts offered over the observation period of two years. In addition, store price image significantly improved with the number of discounted products offered. On the other hand, discount depth had no influence on store price image. These effects, however, are dependent on consumers’ price consciousness and their (non-) usage of a price comparison tool. Lastly, theoretical and practical implications are being provided.

Suggested Citation

  • Scheidegger, Gianluca & Linzmajer, Marc & Rudolph, Thomas, 2020. "Price discount strategies in times of increasing price transparency: How price consciousness and price comparison moderate the effect of discount strategy on store price image," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 74(4), pages 384-402.
    • Handle: RePEc:nms:untern:10.5771/0042-059x-2020-4-384
    DOI: 10.5771/0042-059X-2020-4-384
    as

    Download full text from publisher

    File URL: https://www.nomos-elibrary.de/10.5771/0042-059X-2020-4-384
    Download Restriction: no
    File URL: https://libkey.io/10.5771/0042-059X-2020-4-384?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
    ---><---

    References listed on IDEAS

    as
    1. Inman, J Jeffrey & Peter, Anil C & Raghubir, Priya, 1997. "Framing the Deal: The Role of Restrictions in Accentuating Deal Value," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(1), pages 68-79, June.
    2. Steven D. Levitt & John A. List, 2007. "Viewpoint: On the generalizability of lab behaviour to the field," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 347-370, May.
    3. repec:feb:natura:0056 is not listed on IDEAS
    4. Urbany, Joel E & Dickson, Peter R, 1991. "Consumer Normal Price Estimation: Market versus Personal Standards," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(1), pages 45-51, June.
    5. Steven Levitt & John List, 2008. "Homo economicus evolves," Artefactual Field Experiments 00095, The Field Experiments Website.
    6. repec:feb:framed:0077 is not listed on IDEAS
    7. Alba, Joseph W, et al, 1994. "The Influence of Prior Beliefs, Frequency Cues, and Magnitude Cues on Consumers' Perceptions of Comparative Price Data," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 219-235, September.
    8. Graciola, Ana Paula & De Toni, Deonir & de Lima, Vinicius Zanchet & Milan, Gabriel Sperandio, 2018. "Does price sensitivity and price level influence store price image and repurchase intention in retail markets?," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 201-213.
    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. 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.
    11. Diehl, Kristin & Kornish, Laura J & Lynch, John G, Jr, 2003. "Smart Agents: When Lower Search Costs for Quality Information Increase Price Sensitivity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(1), pages 56-71, June.
    12. repec:feb:artefa:0095 is not listed on IDEAS
    13. Bodur, H. Onur & Klein, Noreen M. & Arora, Neeraj, 2015. "Online Price Search: Impact of Price Comparison Sites on Offline Price Evaluations," Journal of Retailing, Elsevier, vol. 91(1), pages 125-139.
    Full references (including those not matched with items on IDEAS)

    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. Ahn, T.K. & Ostrom, Elinor & Walker, James, 2010. "A common-pool resource experiment with postgraduate subjects from 41 countries," Ecological Economics, Elsevier, vol. 69(12), pages 2624-2633, October.
    2. Omar Al-Ubaydli & John List, 2013. "On the Generalizability of Experimental Results in Economics: With A Response To Camerer," Artefactual Field Experiments j0001, The Field Experiments Website.
    3. Matteo M. Galizzi & Daniel Navarro-Martinez, 2019. "On the External Validity of Social Preference Games: A Systematic Lab-Field Study," Management Science, INFORMS, vol. 65(3), pages 976-1002, March.
    4. Omar Al-Ubaydli & John A. List, 2013. "On the Generalizability of Experimental Results in Economics: With a Response to Commentors," CESifo Working Paper Series 4543, CESifo.
    5. Jan Stoop, 2014. "From the lab to the field: envelopes, dictators and manners," Experimental Economics, Springer;Economic Science Association, vol. 17(2), pages 304-313, June.
    6. Judd Kessler & Judd B. Kessler, 2013. "When will there be Gift Exchange? Addressing the Lab-Field Debate with Laboratory Gift Exchange Experiments," CESifo Working Paper Series 4161, CESifo.
    7. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    8. Frey, Bruno S. & Gallus, Jana, 2014. "Aggregate effects of behavioral anomalies: A new research area," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-15.
    9. Ashutosh Prasad & Brian T. Ratchford & Sonika Singh, 2021. "Consumer Choice and Multi-Store Shopping: an Empirical Investigation," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 7(3), pages 74-89, October.
    10. Ashutosh Prasad & Brian T. Ratchford & Sonika Singh, 2020. "Consumer Choice and Multi-Store Shopping: an Empirical Investigation," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 7(3), pages 74-89, October.
    11. Julián Vicens & Josep Perelló & Jordi Duch, 2018. "Citizen Social Lab: A digital platform for human behavior experimentation within a citizen science framework," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-20, December.
    12. Feng, Cong & Fay, Scott, 2022. "An empirical investigation of forward-looking retailer performance using parking lot traffic data derived from satellite imagery," Journal of Retailing, Elsevier, vol. 98(4), pages 633-646.
    13. 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.
    14. Maxwell N Burton-Chellew & Stuart A West, 2012. "Correlates of Cooperation in a One-Shot High-Stakes Televised Prisoners' Dilemma," PLOS ONE, Public Library of Science, vol. 7(4), pages 1-10, April.
    15. Lillian L. Cheng & Kent B. Monroe, 2013. "An appraisal of behavioral price research (part 1): price as a physical stimulus," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 103-129, September.
    16. 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.
    17. Ahn, T.K. & Ostrom, Elinor & Walker, James, 2011. "Reprint of: A common-pool resource experiment with postgraduate subjects from 41 countries," Ecological Economics, Elsevier, vol. 70(9), pages 1580-1589, July.
    18. 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.
    19. Wettstein, Dominik J. & Boes, Stefan, 2022. "How value-based policy interventions influence price negotiations for new medicines: An experimental approach and initial evidence," Health Policy, Elsevier, vol. 126(2), pages 112-121.
    20. Thi-Phuong Nguyen, 2021. "Assess the Impacts of Discount Policies on the Reliability of a Stochastic Air Transport Network," Mathematics, MDPI, vol. 9(9), pages 1-13, April.

    More about this item

    Statistics

    Access and download statistics

    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:nms:untern:10.5771/0042-059x-2020-4-384. 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: Nomos Verlagsgesellschaft mbH & Co. KG (email available below). General contact details of provider: http://www.nomos.de/ .

    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.