- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Effects of Retail Tensile Pricing Strategy Based on Consumer Self-confidence
CHUNG, Jaekwon
Abstract
Purpose - Pricing strategy is a very effective marketing activity and has a significant impact on consumer purchasing decisions. Numerous studies have investigated the effects of various pricing strategies. However, tensile price claims have received little attention in the literature. It is thus necessary to investigate how different forms of tensile price claims affect consumer response. This study uses the consumer self-confidence level as a moderator of consumer behavior. Research Research design, data, and methodology - This study investigates the effect of four different tensile price claims (i.e., maximum discount, minimum discount, average discount, and range discount advertisements) on consumers' perceived savings. A survey was conducted to collect data for testing hypotheses. Results - The results show that consumers with high levels of self-confidence perceive more savings for maximum discount advertisements than minimum discount advertisements, for range discount advertisements than average discount advertisements. On the other hand, consumers with low self-confidence feel more perceived savings for average discount advertisements than range discount advertisement. Conclusions - The results of this study provide a new insight into the effectiveness of tensile pricing based on consumer self-confidence levels, which may provide valuable theoretical and practical applications.
- keywords
- Retail Tensile Price, Perceived Savings, Pricing Strategy, Retail Pricing, Self-confidence
Reference
Adelmann, P. K. (1987). Occupational complexity, control, and personal income: Their relation to psychological well-being in men and women. Journal of Applied Psychology, 72(4), 529-537.
Barber, N., Ismail, J., & Taylor, D. C. (2007). Label fluency and consumer self-confidence. Journal of Wine Research, 18(2), 73-85.
Bearden, W. O., Hardesty, D. M., & Rose, R. L. (2001). Consumer self-confidence: refinements in conceptualization and measurement. Journal of Consumer Research, 28(1), 121-134.
Bell, G. (1967). Self-confidence and persuasion in car buying. Journal of Marketing Research, 4(1), 46-52.
Biswas, A., & Burton, S. (1993). Consumer perceptions of tensile price claims in advertisement: An assessment of claim types across different discount levels. Journal of the Academy of Marketing Science, 21(3), 217-229.
Biswas, A., & Burton, S. (1994). An experimental assessment of effects associated with alternative tensile price claims. Journal of Business Research, 29(1), 65-73.
Brody, R. P., & Cunningham, S. M. (1968). Personality variables and the consumer decision process. Journal of Marketing Research, 5(1), 50-57.
Campbell, L., & Diamond, W. D. (1990). Framing and sales promotions: The characteristics of a “Good Deal”. Journal of Consumer Marketing, 7(4), 25-31.
Choi, S., Ge, X., & Messinger, P. R. (2010). Consumer perceptions of ambiguous price promotions: scratch and save promotions versus tensile price claims. Journal of Product & Brand Management, 19(7), 477-486.
Chung, J., & Li, D. (2014). A simulation of the impacts of dynamic price management for perishable foods on retailer performance in the presence of need-driven purchasing consumers. Journal of the Operational Research Society, 65(8), 1177-1188.
Darke, P. R., & Chung, C. M. (2005). Effects of pricing and promotion on consumer perceptions: It depends on how you frame it. Journal of Retailing, 81(1), 35-47.
Del Vecchio, D., Krishnan, H. S., & Smith, D. C. (2007). Cents or percent? The effects of promotion framing on price expectations and choice. Journal of Marketing, 71(July), 158-170.
Della Bitta, A. J., Monroe, K. B., & McGinnis, J. M. (1981). Consumer perceptions of comparative price advertisements. Journal of Marketing Research, 18(4), 416-427.
Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis. Upper Saddle River, NJ: Prentice Hall.
Kim, E. (2016). Differences in perceived financial risk according to price discounts and product types of consumers in Korean and Thailand. International Journal of Industrial Distribution & Business, 7(2), 25-32.
Kim, K. M., & Ryu, G. S. (2008). Regulatory focus and tensile price claims. Journal of Korean Marketing Association, 23(4), 197-217.
Kim, M., & Kim, H. (2017). Differences in perceived risk and product attitudes: Focus on Korea and Thailand consumers. International Journal of Industrial Distribution & Business, 8(6), 41-49.
Kim, J., & Nah, S. (2016). The effect of tensile price claims on purchase intention: Focusing on timing of discount and term of discount. The Korean Journal of Advertising, 27(6), 149-177.
Kotler. P., & Keller. K. L. (2011). Marketing Management (14th ed.). Upper Saddle River, MA: Prentice Hall.
Krishna, A., Briesch, R., Lehmann, D. R., & Yuan, H. (2002). A meta-analysis of the impact of price presentation on perceived savings. Journal of Retailing, 78(2), 101-118.
Lee, Y., Park, S., & Lee, E. (2012). Consumer’s preference on tensile price claims: Focusing consumer’s rational-emotional propensity. Korean Association of Business Education, 27(3), 343-370.
Locander, W. B., & Hermann, P. W. (1979). The effect of self-confidence and anxiety on information seeking in consumer risk reduction. Journal of Marketing Research, 16(2), 268-274.
Mobley, M. F., Bearden, W. O., & Teel, J. E. (1988). An investigation of individual responses to tensile price claims. Journal of Consumer Research, 15(2), 273-279.
Morwitz, V. G., Greenleaf, E. A., & Johnson, E. J. (1998). Divide and prosper: Consumers' reactions to partitioned prices. Journal of Marketing Research, 35(4), 453-463.
Nguyen, D. H., Jeong, E., & Chung, J. (2018). The potential impact of service quality uncertainty and retail pricing strategies on consumer purchase intention. Journal of Distribution Science, 16(12), 13-21.
Perry, P. (2011). Concept analysis: Confidence/Self-confidence. Nursing Forum, 46(4), 218-230.
Prashar, S., Raja, B., Parasaran, V. S., & Venna, V. K. (2015). Factors prompting impulse buying behavior:Shoppers in Dubai. East Asian Journal of Business Management, 5(3), 5-15.
Reed, A. E., Mikels, J. A., & Löckenhoff, C. E. (2012). Choosing with confidence: Self efficacy and preferences for choice. Judgment and Decision Making, 7(2), 173-180.
White, K. A. (2009). Self-confidence: A concept analysis. Nursing Forum, 44(2), 103-114.
Yoo, C., & Hyun, S. (2010). Empirical analyses on the effects of tensile price discounts about product line. Journal of Korean Marketing Association, 25(4), 145-162.
Yoo, C., & Hyun, S. (2011). Comparative analyses on the effects of tensile price discounts by discount size and regulatory focus. Journal of Consumer Studies, 22(2), 253-275.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations