Price Matching Guarantees As Signals of Lowest Price: the Role of Perceived Risk and Estimate of Lowest Market Price

This paper presents and tests a model of Price Matching Guarantee (PMG) effects where consumers’ estimates of a product’s lowest market price and their perception of financial risk of an offer mediate the effects of PMG on perception of offer value, shopping intention and search intention. Specifically, the findings indicate that exposure to an offer accompanied by a PMG shifts consumers’ estimates of the lowest market price toward the offer price and leads to lower perceived financial risk of the offer. These effects in turn lead to higher value perception, higher shopping intention and lower search intention.

Citation:

Abhijit Biswas, Sujay Dutta, and Dipayan Biswas (2006) ,"Price Matching Guarantees As Signals of Lowest Price: the Role of Perceived Risk and Estimate of Lowest Market Price", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 527-528.