Higher Quality or Lower Price? How Value-Increasing Promotions Affect Retailer Reputation via Perceived Value
Document Type
Article
Keywords
value; price; quality; promotion; retailer; perception
Identifier Data
https://doi.org/10.1016/j.jbusres.2014.04.017
Publisher
ScienceDirect
Publication Source
Journal of Business Research, 67(10), 2088-2096
Abstract
Marketers often attempt to increase consumers' perceptions of value by raising the quality or reducing the price of products. Five studies demonstrate that consumers are generally more sensitive to lower-price promotions than to higher-quality promotions as they form their perceptions of retailer reputation (Study 1), that the perceived value mediates this effect (Study 2), that store image (prestigious vs. thrifty) moderates the effect (Study 3), and that perceived price level (Study 4) and quality level (Study 5) independently drive the moderating effect of store image.
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