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Oh, Sangdo
School of Business Administration
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Higher quality or lower price? How value-increasing promotions affect retailer reputation via perceived value

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Title
Higher quality or lower price? How value-increasing promotions affect retailer reputation via perceived value
Author
Yoon, SukkiOh, SangdoSong, SujinKim, Kyungok K.Kim, Yeonshin
Keywords
Perception; Price; Promotion; Quality; Retailer; Value
Issue Date
201410
Publisher
ELSEVIER SCIENCE INC
Citation
JOURNAL OF BUSINESS RESEARCH, v.67, no.10, pp.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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DOI
http://dx.doi.org/10.1016/j.jbusres.2014.04.017
ISSN
0148-2963
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