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Improving the Effect of Guarantees: The Role of a Retailer's Reputation

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  • Roggeveen, Anne L.
  • Goodstein, Ronald C.
  • Grewal, Dhruv

Abstract

This research examines the interaction of two cues, retailer reputation and guarantees on evaluations. Extending Mandler's (1982) incongruity framework, we illustrate across three studies how moderately incongruent signals can be combined to enhance evaluations. Unique to our application of moderate incongruity, however, is the fact that guarantee cues can be incongruent with the retailer's reputation, in terms of domain (e.g., price matching guarantee (PMG) offered by provider whose reputation is based on service, not pricing) or valence (e.g., PMG offered by retailer known for carrying expensive merchandize). This dual perspective on the source of incongruity (domain or valence) is important and highlights when guarantees enhance evaluations.

Suggested Citation

  • Roggeveen, Anne L. & Goodstein, Ronald C. & Grewal, Dhruv, 2014. "Improving the Effect of Guarantees: The Role of a Retailer's Reputation," Journal of Retailing, Elsevier, vol. 90(1), pages 27-39.
    • Handle: RePEc:eee:jouret:v:90:y:2014:i:1:p:27-39
    DOI: 10.1016/j.jretai.2013.11.003
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    3. Wenyan Zhou & Oliver Hinz & Alexander Benlian, 2018. "The impact of the package opening process on product returns," Business Research, Springer;German Academic Association for Business Research, vol. 11(2), pages 279-308, September.
    4. Sujay Dutta & Abhijit Guha & Abhijit Biswas & Dhruv Grewal, 2019. "Can attempts to delight customers with surprise gains boomerang? A test using low-price guarantees," Journal of the Academy of Marketing Science, Springer, vol. 47(3), pages 417-437, May.
    5. Hsieh, Jung-Kuei, 2023. "The impact of influencers' multi-SNS use on followers’ behavioral intentions: An integration of cue consistency theory and social identity theory," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    6. Locander, Jennifer A. & White, Allyn & Newman, Christopher L., 2020. "Customer responses to frontline employee complaining in retail service environments: The role of perceived impropriety," Journal of Business Research, Elsevier, vol. 107(C), pages 315-323.
    7. Lazaris, Chris & Vrechopoulos, Adam & Sarantopoulos, Panagiotis & Doukidis, Georgios, 2022. "Additive omnichannel atmospheric cues: The mediating effects of cognitive and affective responses on purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    8. Fürst, Andreas & Pečornik, Nina & Binder, Christian, 2021. "All or Nothing in Sensory Marketing: Must All or Only Some Sensory Attributes Be Congruent With a Product’s Primary Function?," Journal of Retailing, Elsevier, vol. 97(3), pages 439-458.
    9. Jean-Pierre Thomassen & Marijke C. Leliveld & Kees Ahaus & Steven Walle, 2020. "Prosocial Compensation Following a Service Failure: Fulfilling an Organization’s Ethical and Philanthropic Responsibilities," Journal of Business Ethics, Springer, vol. 162(1), pages 123-147, February.
    10. Jeng, Shih-Ping & Lo, Min-Fang, 2019. "Lowest price guarantees on airline websites: Perceived believability, perceived value, and purchase intentions," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 85-91.

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