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Refund depth effects on the impact of price-beating guarantees

Author

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  • Desmet, Pierre
  • Le Nagard, Emmanuelle
  • Vinzi, Vincenzo Esposito

Abstract

Refund depth may influence the effectiveness of a price guarantee when a store offers to reimburse customers more than the price difference. Using an experimental study that features real stores with high credibility, this article shows that a simple price-matching guarantee has no effect on either the perceived value of an offer or intentions to visit the store. Low and high penalty levels have smaller effects than intermediate penalties, but the believability of price guarantee offers that contain a penalty remains constant; this finding may reflect a general distrust of additional penalties.

Suggested Citation

  • Desmet, Pierre & Le Nagard, Emmanuelle & Vinzi, Vincenzo Esposito, 2012. "Refund depth effects on the impact of price-beating guarantees," Journal of Business Research, Elsevier, vol. 65(5), pages 603-608.
    • Handle: RePEc:eee:jbrese:v:65:y:2012:i:5:p:603-608
    DOI: 10.1016/j.jbusres.2011.02.034
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    References listed on IDEAS

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    2. Babin, Barry J. & Borges, Adilson & James, Kevin, 2016. "The role of retail price image in a multi-country context: France and the USA," Journal of Business Research, Elsevier, vol. 69(3), pages 1074-1081.

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