Price versus Nice? How Unfavorable Price Comparisons Help Retain Customers
Journal
Journal of Marketing Theory and Practice
ISSN
1069-6679
ISSN-Digital
1944-7175
Type
journal article
Date Issued
2013
Author(s)
Abstract
This paper examines how a retailer can influence shopping behavior (in its favor) by providing consumers with information about its competitors' offerings. We propose that the provision of such information encourages the simultaneous evaluation of competing options such that consumers' purchasing decisions will be driven by the comparative assessment of the retailers' trustworthiness and of their price position. The results of a simulated-shopping experiment show that a retailer can benefit from encouraging consumers to compare its offerings to those of a superior competitor. Furthermore, the provision of competitor information on one purchase occasion also influences which retailer is chosen on future occasions. However, these effects are contingent upon consumers' willingness to reexamine relevant product information and the level of decision ambiguity present.
Language
English
Keywords
SHOPPING
CONSUMER behavior
COMPETITOR orientation
RETAIL industry
WILLINGNESS to pay
COMPARATIVE studies
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Association of Marketing Theory and Practice
Publisher place
Statesboro, GA
Volume
21
Number
2
Start page
163
End page
178
Pages
16
Subject(s)
Division(s)
Eprints ID
236305