Document Type
Article
Date of Original Version
2013
Abstract
Behavioral pricing research includes a considerable amount of focus on the effects of semantic cues (phrases) used to label reference and offer prices in price promotions, but a related type of semantic claim also frequently used in price promotions has continued to escape research attention - claims that attempt to encourage purchases by describing the consequences of buying at the discounted price (e.g. Super Savings). Using a variety of methods and conceptual foundations, the present research is the first to comprehensively study consumers' discount and value associations of these semantic claims. In a series of three studies, we find evidence suggesting that at least some semantic claims have consistent numerical interpretations and a subset of those were found to influence discount expectations and perceptions of both transaction and acquisition value. These findings suggest the importance of recognizing that consumers may associate specific claims with certain discount magnitudes.
Citation/Publisher Attribution
Norberg, Patricia A., & Della Bitta, Albert J. (2013.) Price Discount Perception: Consumers' Numeric Interpretation of Semantic Price Claims (Wiliam A. Orme Working Paper Series, 2012/2013 No. 2). Kingston, RI: University of Rhode Island College of Business Administration. Retrieved from
http://www.cba.uri.edu/research/workingpapers/documents/2013/WP2_2013.pdf.
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