Differential Impact of What Is Available and What Is Inferred: Promotional Element Salience Effect in Reference Price Promotions

Igor Makienko, Louisiana State University

 Differential Impact of What is Available and What is Inferred:

Promotional Element Salience Effect in Reference Price Promotions.

 

Igor Makienko, Louisiana State University

 

Study represents an extension of the study by Urbany et al. (1988) on the effect of exaggerated and plausible reference prices. In addition to reference price level, the effect of the salience of different promotional elements (sale price and respective discount) on consumers’ deal perceptions and market price estimates is investigated. Results show that salience of promotional elements did not have any significant effect at the plausible reference price level. However, presenting a discount instead of a sale price in a high implausible reference price condition had detrimental effect on respondents’ deal perceptions and at the same time significantly enhanced retailer credibility.
[ to cite ]:
Igor Makienko (2006) ,"Differential Impact of What Is Available and What Is Inferred: Promotional Element Salience Effect in Reference Price Promotions", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 328-330.