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Price Promotion (In)consistency and Consumers’ Brand Evaluations: The Role of Reference Prices

Author

Listed:
  • TINA M. Ashok K. Lalwani

    (Indiana University)

  • David H. Silvera

    (University of Texas at San Antonio)

  • Kent B. Monroe

    (University of Illinois/University of Richmond)

Abstract

Research suggests that consumers evaluate a brand that is promoted now but never before less favorably than a brand promoted now and also promoted consistently in the past because the former promotional behavior generates negative attributions. The present research examines the alternative possibility that a brand promoted inconsistently (vs. consistently) may be evaluated more favorably because it has a higher reference price. Three studies contrasting these two explanations reveal that when consumers' reference prices for the competing brands under consideration are similar, attributions drive evaluations. However, when consumers' reference prices for the competing brands differ, reference prices drive evaluations.

Suggested Citation

  • TINA M. Ashok K. Lalwani & David H. Silvera & Kent B. Monroe, "undated". "Price Promotion (In)consistency and Consumers’ Brand Evaluations: The Role of Reference Prices," Working Papers 0022, College of Business, University of Texas at San Antonio.
  • Handle: RePEc:tsa:wpaper:0022
    as

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    File URL: http://business.utsa.edu/wps/mkt/0022MKT-448-2012.pdf
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    References listed on IDEAS

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    6. Collins, Daniel W. & Maydew, Edward L. & Weiss, Ira S., 1997. "Changes in the value-relevance of earnings and book values over the past forty years," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 39-67, December.
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    More about this item

    Keywords

    reference price; adaptation level; price promotion; attributions; brand evaluations;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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