Do Price Judgments Always Influence Choice? the Effects of Retailer Discount Frequency and Depth

Shai Danziger, Ben-Gurion University, Israel
Sharon Gal, Ben-Gurion University, Israel
Vicki Morwitz, New York University, USA
Consumers’ perceptions of retailers’ prices are affected by the depth and frequency of their discounts (Alba et al. 1999; Lalwani and Monroe, 2005). In past research, prices for depth and frequency retailers were revealed and their effect on price perceptions examined. We instead examine the effect of frequency and depth on retailer choice when respondents only see prices for the chosen retailer. Respondents’ buy more often from retailers offering frequent shallow discounts than from those offering deep infrequent discounts, though perceived price is lower for the latter. Choice is more strongly associated with perceived price fairness than with perceived average price.
[ to cite ]:
Shai Danziger, Sharon Gal, and Vicki Morwitz (2009) ,"Do Price Judgments Always Influence Choice? the Effects of Retailer Discount Frequency and Depth", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 184-187.