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Reduce Content or Raise Price? The Impact of Persuasion Knowledge and Unit Price Increase Tactics on Retailer and Product Brand Attitudes

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  • Kachersky, Luke

Abstract

This research investigates consumer reactions to the practice of increasing unit prices of products by either reducing product content or increasing total prices. Using pricing tactic persuasion knowledge (PTPK) as a lens for understanding, I predict that total price increases garner less favorable attitudes toward retailers for relatively low PTPK consumers, while content reductions garner less favorable attitudes toward product brands for relatively high PTPK consumers. The results of an experiment with a nationally representative sample of U.S. consumers support these asymmetric predictions about PTPK consumer segments as well as expectations about the underlying psychological processes.

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  • Kachersky, Luke, 2011. "Reduce Content or Raise Price? The Impact of Persuasion Knowledge and Unit Price Increase Tactics on Retailer and Product Brand Attitudes," Journal of Retailing, Elsevier, vol. 87(4), pages 479-488.
    • Handle: RePEc:eee:jouret:v:87:y:2011:i:4:p:479-488
    DOI: 10.1016/j.jretai.2011.08.001
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    References listed on IDEAS

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    Cited by:

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    2. Kim, Claire Heeryung & Han, Eunjoo, 2020. "Premiums Paid for What You Believe In: The Interactive Roles of Price Promotion and Cause Involvement on Consumer Response," Journal of Retailing, Elsevier, vol. 96(2), pages 235-250.
    3. Jun Yao & Harmen Oppewal & Di Wang, 2020. "Cheaper and smaller or more expensive and larger: how consumers respond to unit price increase tactics that simultaneously change product price and package size," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1075-1094, November.
    4. A. Fecher & T. Robbert & S. Roth, 2020. "Unit Price Measures in Retailing: Consistency Effects on Product Choice and Store Evaluations," Journal of Consumer Policy, Springer, vol. 43(3), pages 611-633, September.
    5. Qin, Chang-Xiong & Liu, Zhao, 2022. "Reference price effect of partially similar online products in the consideration stage," Journal of Business Research, Elsevier, vol. 152(C), pages 70-81.
    6. Golovacheva, E., 2016. "When consumers activate persuasion knowledge: Review of antecedents and consequences," Working Papers 6440, Graduate School of Management, St. Petersburg State University.
    7. Vahid Rahmani, 2023. "Persuasion knowledge framework: Toward a comprehensive model of consumers’ persuasion knowledge," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 12-33, June.
    8. Weeks, Clinton S. & Mortimer, Gary & Page, Lionel, 2016. "Understanding how consumer education impacts shoppers over time: A longitudinal field study of unit price usage," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 198-209.
    9. James J. Zboja & Ronald A. Clark & Diana L. Haytko, 2016. "An offer you can’t refuse: consumer perceptions of sales pressure," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 806-821, November.
    10. Golovacheva, K., 2015. "Consumer response to unit price increase: The role of pricing tactics and consumer knowledge," Working Papers 6421, Graduate School of Management, St. Petersburg State University.
    11. Das, Gopal & Roy, Rajat & Naidoo, Vik, 2020. "When do consumers prefer partitioned prices? The role of mood and pricing tactic persuasion knowledge," Journal of Business Research, Elsevier, vol. 116(C), pages 60-67.
    12. Qin, Fei & Ma, Meilin, 2022. "Unit Pricing Regulation and Non-Price Responses of Retailers: Evidence from the U.S. Yogurt Market," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322243, Agricultural and Applied Economics Association.
    13. Yao, Jun & Oppewal, Harmen, 2016. "Unit Pricing Increases Price Sensitivity Even When Products are of Identical Size," Journal of Retailing, Elsevier, vol. 92(1), pages 109-121.

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