INVESTIGATING THE INFLUENCE OF REFERENCE PRICE ADVERTISEMENTS ON CONSUMER PERCEPTION

Swati Kakati

Authors

Swati Kakati Professor, Department of Business Administration, Gauhati University, Guwahati, Assam, India

Keywords:

Reference price advertisements, consumer perception, perceived value

Abstract

This study investigates the influence of reference price advertisements on consumer perception. Reference prices, often presented as discounts or comparisons to regular prices, play a significant role in shaping consumers' perceptions of product value and purchase decisions. Through a combination of experimental design and survey methods, this research examines how different types of reference price advertisements impact consumers' perceived value, trust in advertising, and purchase intentions. The findings shed light on the cognitive processes underlying consumer responses to reference prices, offering insights for marketers seeking to optimize pricing strategies and enhance consumer engagement.

References

Abhijit Biswas, Chris Pullig, Balaji C. Krishnan and Scot Burton (1999), “Consumer Evaluation of Reference Price Advertisements: Effects of Other Brands' Prices and Semantic Cues “, Journal of Public Policy & Marketing, Vol. 18

Donald R. Lichtenstein,Scot Burton and Eric J. Karson (1991), “The Effect of Semantic Cues on Consumer Perceptions of Reference Price” ,Journal of Consumer Research, Vol. 18

William D. Diamond, and Leland Campbell (1989) “The Framing of Sales Promotions: Effects on Reference Price Change” ,Advances in Consumer Research, Vol. 16

Dhruv Grewal, Kent B. Monroe and R. Krishnan (1998) “The Effects of Price-Comparison Advertising on Buyers' Perceptions of Acquisition Value, Transaction Value, and Behavioral Intentions”, Journal of Marketing, Vol. 62, No. 2

Larry D. Compeau and Dhruv Grewal(1998), “Comparative Price Advertising: An Integrative Review”, Journal of Public Policy & Marketing, Vol. 17

U. Kalwani and Chi Kin Yim (1992), “Consumer Price and Promotion Expectations: An Experimental Study” ,Journal of Marketing Research, Vol. 29

Ajay Kalra and Ronald C. Goodstein (1998) “The Impact of Advertising Positioning Strategies on Consumer Price Sensitivity”, Journal of Marketing Research ,vol 35

Paul W. Farris and Mark S. Albion (1980), “The Impact of Advertising on the Price of Consumer Products” Journal of Marketing, Vol. 44

Anil Kaul and Dick R. Wittink (1995), “Empirical Generalizations about the Impact of Advertising on Price Sensitivity and Price, Marketing Science No. 3, Part 2 of 2: Special Issue on Empirical Generalizations in Marketing, Vol. 14

Joseph W. Alba, Carl F. Mela, Terence A. Shimp, and Joel E. (1999), “The Effect of Discount Frequency and Depth on Consumer Price Judgments” ,Journal of Consumer Research, Vol. 26