Title

Higher Quality or Lower Price? How Value-Increasing Promotions Affect Retailer Reputation via Perceived Value

Authors

Sukki Yoon, Bryant UniversityFollow
Sangdo Oh, Yonsei UniversityFollow
Sugin Song, Korea University - KoreaFollow
Kacy Kim, Bryant UniversityFollow
Yeonshin Kim, Myongji UniversityFollow

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.