Do Price Promotions Lead to a Reduction of the Internal Reference Price and If So, Under Which Conditions Is This Effect Less Strong?

Silke Bambauer-Sachse, University of Fribourg, Switzerland
Angélique Dupuy, University of Fribourg, Switzerland
This paper examines effects of price promotions on changes of internal reference prices by analyzing moderator effects of price confidence, involvement, and the saving presentation. The results of the empirical study show how marketers should communicate price promotions to avoid strong reductions of consumers’ internal reference prices.
[ to cite ]:
Silke Bambauer-Sachse and Angélique Dupuy (2012) ,"Do Price Promotions Lead to a Reduction of the Internal Reference Price and If So, Under Which Conditions Is This Effect Less Strong?", in NA - Advances in Consumer Research Volume 40, eds. Zeynep Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 334-341.