- Apply for Authority
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS
ISSN : 1738-3110
The Influence of Price Discount Preannouncing in the Distribution Process on Regret and Price Fairness Perception
HWANG, Hee-Joong
- Downloaded
- Viewed
Abstract
Purpose: This research investigates whether the existence of preannouncing price discount before purchase has an effect on after regret about purchasing and price fairness perception. Moreover, this paper examines whether the preannouncing effects on regret (or price fairness perception) are moderated by motive inference type (or brand trust). Research design, data and methodology: This experimental design consisted of total 8 between-subjects full factorial, which is completed by 2 (preannouncing price discount before purchase) × 2 (motive inference type) × 2 (consumer's brand trust level). Results: First, regret (or price fairness) differs depending on the presence/absence of preannouncing price discount before purchase and price discount motive inference type. Second, interaction effect of preannouncing price discount presence/absence before purchase and price discount motive inference type on regret (or price fairness) after purchase differs depending on motive inference type (or brand trust). Conclusions: Preannouncing external cue could decrease the possibility of consumers to regret and prevent consumers perceiving price change as unfair. Thus, corporations should sufficiently explain to consumers about preannouncing and specific reason of price fall in order to decrease regret caused by price fall and to increase price fairness perception from preannouncing effect.
- keywords
- Price Discount, Preannouncing, Discount Motive Inference Level Type, Consumer's Brand Trust, Regret, Price Fairness Perception
Reference
Ryu, G., & Gang, H. (2004). The Effects of Inferred Motives for a Price Discount on Consumer Responses: The Moderating Role of Discount Size and Time Resources. Marketing Research, 23(4), 197-217.
Chu, W., & Hwang, H. (2008). How Post-purchase & Anticipated Regrets Shape a Consumer’s Subsequent Decision Making. Consumer Research, 19(2), 215-146.
Baek, T. H., & King, K. W. (2011). Exploring the Consequences of Brand Credibility in Services. Journal of Services Marketing, 25(4), 260-272.
Bem, D. J. (1965). An experimental analysis of self-persuasion. Journal of Experimental Social Psychology, 1, 199-218.
Bem, D. J. (1967). Self-Perception: The Dependent Variable of Human Performance. Organizational Behavior and Human Performance, 2, 105-121.
Bies, R. J., & Shapiro, D. L. (1988). Voice and Justification: Their Influence on Procedural Fairness Judgments. Academy of Management Journal, 31, 676-685.
Bobinski, G. S. Jr., Cox, D., & Cox, A. (1996). Retail “Sale”Advertising, Perceived Retailer Credibility, and Price Rtionale. Journal of Retailing, 72(3), 291-306.
Bolton, L. E., Warlop, L., & Alba, J. W. (2003). Consumer Perceptions of Price (Un)Fairness. Journal of Consumer Research, 29(4), 474-491.
Campbell, M. C. (2007). Says “Who?!” How the Source of Price Information and Affect Influence Perceived Price (Un)fairness. Journal of Marketing Research, 44(2), 261-171.
Campbell, M. C. (1999). Perceptions of Price Unfairness. Journal of Consumer Research, 29(March), 474-491.
Cianci, A. M., & Kaplan, S. (2008). The Effects of Management’s Preannouncement Strategies on Investors’ Judgments of the Trustworthiness of Management. Journal of Business Ethics, 79, 423-444.
Darke, P. R., & Dahl, D. W. (2003). Fairness and Discounts: The Subjective Value of a Bargain. Journal of Consumer Psychology, 13(3), 328-338.
Dutta, S., Biswas, A., & Grewal. D. (2011). Regret from Postpurchase Discovery of Lower Prices: Do Price Refunds Help?. Journal of Marketing, 75(November), 124-138
Dodson, J. A., Tybout, A. M., & Sternthal, A. (1978). Impact of Deals and Deal Retraction or. Brand Switching. Journal of Marketing Research, XV(February), 72-81.
Eagly, A. H., Wood, W., & Chaiken, S. (1978). Causal Inferences About Communicators and Their Effect on Opinion Change. Journal of Personality and Social Psychology, 36, 424-435.
Eliashberg, J., & Robertson, T. S. (1988). New product preannouncing behavior: A marketsignaling study. Journal of Marketing Research, 25, 282-292.
Erdem, T., & Swait. J. (1998). Brand Equity as a Signaling Phenomenon. Journal of Consumer Psychology, 7(2), 131-157.
Erdem, T., Swait, J. , & Jordan, L. (2002). The Impact of Brand Credibility on Consumer Price Sensibility. International Journal of Research in Marketing, 19, 1-19.
Erdem, T., & Swait, J. (2004). Brand credibility, brand consideration, and choice. Journal of Consumer Research, 31(1), 191-198.
Fathollah, S., & Aghdaie, A. (2012). An Analysis of Impact of Brand Credibility and Perceived Quality on Consumer Evaluations of Brand Alliance. International Journal of Marketing Studies, 4(2), 93-102.
Folkes, V. S. (1988). Recent Attribution Research in Consumer Behavior: A Review and New Directions. Journal of Consumer Research, 14, 548-565.
Harrison, J. R., & March, J. G. (1984). Decision Making and Postdecision Surprises. Administrative Science Quarterly, 29(1), 26-42.
Hendel, I., & Izerri, A. (1999). Adverse Selection in Durable Goods Markets. American Economic Review, 89(5), 1097-1115.
Jain, S., & Srivastava, J. (2000). An Experimental and Theoretical Analysis of Price-Matching Refund Policies. Journal of Marketing Research, 37(3), 351-362.
Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, Econometric Society, 47(2), 263-91.
Kahneman, D., & Tversky, A. (1982). The psychology of Preferences. Scientific American, 246, 160-73.
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1986a). Fairness as a Constraint on Profit Seeking: Entitlement in the Market. The American Economic Review, 76(4), 728-741.
Kahneman, D., & Tversky, A. (1996). On the Reality of Cognitive Illusions: A Reply to Gigerenzer's Critique. Psychological Review, 103, 582-591.
Krishnamurthi, L., Mazumdar, L. T., & Raj, S. P. (1992). Asymmetric Response to Price in Consumer Brand Choice and Purchase Quantity Decisions. Journal of Consumer Research, 19(3), 387-400.
Kumar, A., & Oliver, R. L. (1997). Cognitive Appraisal, Consumer Emotions, and Consumer Response. Advances in Consumer Research, 24, 17-18.
Lichtenstein, D. R., Burton, S., & Karson, E. J. (1991). The Effect of Semantic Cues on Consumer Perceptions of Reference Price Ads. Journal of Consumer Research, 18(December), 380-391.
Mercer, N. (2005). Sociocultural Discourse Analysis: Analysing Classroom Talk as a Social Mode of Thinking. Journal of Applied Linguistics, 1(2), 137-168.
McConnell, A. R., Niedermeier, K. E., Leibold, J. M., El-Alayli, A. G., Chin, P. P., & Kuiper, N. M. (2000). What if I Fnd it Cheaper Somewhere Else? Role of Prefactual Thinking and Anticipated Regret in Consumer Behavior. Psychology and Marketing, 17, 281-298.
Monroe, K. B., & Petroshius, S. (1981). Buyers’ Perception of Price: An Update of the Findings, in H. Kassarjian and T. S. Robertson, eds., Perspectives in Consumer Behavior 3rd Edition, Glenview, IL: Scott, Foresman and Company, 43-55.
Neslin, S. A., & Shoemaker, R.W. (1989). An Alternative Explanation for Lower Repeat Rates Following Promotion Purchases. Journal of Marketing Research, 26(May), 205-213.
Nyer, P. U. (1997). A Study of the Relationships between Cognitive Appraisals and Consumption Emotions. Journal of the Academy of Marketing Science, 25(4), 296-335.
Rotemberg, J. J. (2010). Altruistic Dynamic Pricing with Customer Regret. The Scandinavian Journal of Economics, 112(4), 646-672.
Spence, M. (1974). Market Signaling: Informational Transfer in Hiring and Related Screening Processes, Cambridge. MA:Harvard University Press
Tversky, A. and Kahneman, D. (1981). The Framing of Decisions and the Psychology of Choice. Science, New Series, 211(4481), 453-458.
Tirole, J. (1990). The theory of industrial organization. Cambridge, MA: MIT Press
Tsiros, M., & Mittal, V. (2000). Regret: A model of Its Antecedents and Consequences in Consumer Decision-Making. Journal of Consumer Research, 26, 401-417.
Urbany, J. E., Bearden, W. O., & Weilbaker, D. C. (1988). The Effect of Plausible and Exaggerated Reference Price on Consumer Perceptions and Price Search. Journal of Consumer Research, 15(June), 95-110.
Weiner, B. (1992). Human Motivation: Metaphors, Theories, and Research, Sage Publications.
Weiner, B. (2000). Intrapersonal and Interpersonal Theories of Motivation from an Attributional Perspective. Educational Psychology Review, 12(1), 1-14.
Wernerfelt, B. (1988). Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond. Rand Journal of Economics, 19, 458-466.
Xia, L., Monroe, K. B., & Jennifer, L. C. (2004). The Price is Unfair! A Conceptual Framework of Price Fairness Perceptions. Journal of Marketing, 68(October), 1-15.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations