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Refund depth effects on the impact of price-beating guarantees

Author

Listed:
  • Pierre Desmet

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, ESSEC Business School)

  • Emmanuelle Le Nagard

    (ESSEC Business School)

  • Vincenzo Esposito Vinzi

    (ESSEC Business School)

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

  • Pierre Desmet & Emmanuelle Le Nagard & Vincenzo Esposito Vinzi, 2012. "Refund depth effects on the impact of price-beating guarantees," Post-Print hal-01631381, HAL.
  • Handle: RePEc:hal:journl:hal-01631381
    DOI: 10.1016/j.jbusres.2011.02.034
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    Cited by:

    1. Lin, Hsin-Hui & Tseng, Timmy H. & Yeh, Ching-Hsuan & Liao, Yi-Wen & Wang, Yi-Shun, 2020. "What drives customers’ post-purchase price search intention in the context of online price matching guarantees," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).

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