Price-Matching Refunds and Consumer Price Perceptions: Effect on Store Price Image and Processing of Price Information

ABSTRACT - This paper examines how price-matching refund policies affect consumer perceptions and processing of product price information. Study 1 finds that price-matching policies affect perceptions of overall store prices only in the absence of other low-price cues. Study 2 finds that price-matching policies are effective when such policies accompany high, but not low, prices. Study 3 finds that price-matching policies change consumer estimates of lowest and expected market prices and that these estimates of market prices mediate price perceptions. Despite lowering store price perceptions, price-matching policies are not found to have a deleterious effect on quality perceptions.

Citation:

Nicholas Lurie and Joydeep Srivastava (2001) ,"Price-Matching Refunds and Consumer Price Perceptions: Effect on Store Price Image and Processing of Price Information", in NA - Advances in Consumer Research Volume 28, eds. Mary C. Gilly and Joan Meyers-Levy, Valdosta, GA : Association for Consumer Research, Pages: 324.

Advances in Consumer Research Volume 28, 2001     Page 324

PRICE-MATCHING REFUNDS AND CONSUMER PRICE PERCEPTIONS: EFFECT ON STORE PRICE IMAGE AND PROCESSING OF PRICE INFORMATION

Nicholas Lurie, University of North Carolina, Chapel Hill

Joydeep Srivastava, University of California, Berkeley

ABSTRACT -

This paper examines how price-matching refund policies affect consumer perceptions and processing of product price information. Study 1 finds that price-matching policies affect perceptions of overall store prices only in the absence of other low-price cues. Study 2 finds that price-matching policies are effective when such policies accompany high, but not low, prices. Study 3 finds that price-matching policies change consumer estimates of lowest and expected market prices and that these estimates of market prices mediate price perceptions. Despite lowering store price perceptions, price-matching policies are not found to have a deleterious effect on quality perceptions.

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