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Differential Effects of Price-beating Versus Price-matching Guarantee on Retailers' Price Image

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)

Abstract

The purpose is to study the effect of a low-price guarantee (PG) on store price image and store patronage intention. Two kinds of low-price guarantee are studied, a price-matching guarantee (PMG) where the price difference is refunded and a price-beating guarantee (PBG) where a retailer offers an additional compensation (in this case ten times the price difference).

Suggested Citation

  • Pierre Desmet & Emmanuelle Le Nagard, 2005. "Differential Effects of Price-beating Versus Price-matching Guarantee on Retailers' Price Image," Post-Print halshs-00143377, HAL.
    • Handle: RePEc:hal:journl:halshs-00143377
    DOI: 10.1108/10610420510624558
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    Citations

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    Cited by:

    1. Lombart, Cindy & Louis, Didier & Labbé-Pinlon, Blandine, 2016. "Price image consequences," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 107-116.
    2. 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.
    3. Verma, Swati & Guha, Abhijit & Biswas, Abhijit & Grewal, Dhruv, 2019. "Are Low Price and Price Matching Guarantees Equivalent? The Effects of Different Price Guarantees on Consumers’ Evaluations," Journal of Retailing, Elsevier, vol. 95(3), pages 99-108.
    4. Loy, Jens-Peter & Ceynowa, Christian & Kuhn, Lena, 2020. "Price recall: Brand and store type differences," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    5. Rafael Luis Wagner, 2019. "Lowering consumers’ price image without lowering their internal reference price: the role of pay-what-you-want pricing mechanism," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 332-341, August.
    6. K. Balaji & R. Maheswari, 2021. "Impact of Store Image Dimensions on Shopper’s Attitude, Perceived Value, and Purchase Intention," SAGE Open, , vol. 11(1), pages 21582440219, February.
    7. 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.
    8. Cheah, Jun-Hwa & Waller, David & Thaichon, Park & Ting, Hiram & Lim, Xin-Jean, 2020. "Price image and the sugrophobia effect on luxury retail purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    9. Willart, Sylvain P.C., 2015. "Price competition in retailing: The importance of the price density function," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 125-132.
    10. 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.
    11. Morten Hviid & Greg Shaffer, 2012. "Optimal low-price guarantees with anchoring," Quantitative Marketing and Economics (QME), Springer, vol. 10(4), pages 393-417, December.

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