Too Good to Be True Vs. Too High to Be Good: the Role of Product’S Price and Form of Incentive in Sales Promotion Evaluations

Igor Makienko, Louisiana State University

Too Good to be True vs. Too High to be Good: The Role of Product’s Price and Form of Incentive in Sales Promotion Evaluations

 

Igor Makienko, Louisiana State University

 

Study investigates how the form of incentive (monetary vs. nonmonetary) and the price level of a promoted product (normally priced vs. overpriced) affect consumers’ evaluations of economically identical deals. Although the first factor has received significant attention in previous research, only a modest degree of effort has been devoted to the second factor. Contrary to previous findings on strong positive effect of high implausible reference prices, results of this study indicate that when a promoted product is overpriced, respondents’ perceptions of the deal are significantly lower than when a promoted product is normally priced (regardless of the form of incentive).
[ to cite ]:
Igor Makienko (2006) ,"Too Good to Be True Vs. Too High to Be Good: the Role of Product’S Price and Form of Incentive in Sales Promotion Evaluations", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 330-331.