TY  - JOUR
AB  - An experiment was conducted in which level of claim (plausible versus implausible), claim type (tensile versus objective), and brand familiarity were manipulated to determine consumer responses to sale ads. Conducted in an Asian setting using percentage instead of dollar value price reductions, the results replicated and extended past findings in the pricing literature. Specifically, implausible claims that purported exaggerated savings led to greater discounting, higher perceived price reduction, higher perceived offer value, and higher shopping intention than those with plausible price reductions. Objective price claims that state the exact amount of reduction generally elicited more favorable responses than tensile claims of the “save up to ____ percent” genre. When the price reductions were implausible, tensile claims resulted in higher discounting, lower perceived price reduction, and lower perceived offer value than did objective claims. Finally, greater brand familiarity resulted in higher claim discounting and lower perceived price reduction when the claims were implausible rather than plausible. Theoretical and managerial implications are furnished together with directions for future research.
VL  - 5
IS  - 3
SN  - 0968-4905
DO  - 10.1108/09684909710171891
UR  - https://doi.org/10.1108/09684909710171891
AU  - Hoon Ang Swee
AU  - Meng Leong Siew
AU  - Lin Tey Wei
PY  - 1997
Y1  - 1997/01/01
TI  - Effects of price reduction sale ads on consumer responses
T2  - Pricing Strategy and Practice
PB  - MCB UP Ltd
SP  - 116
EP  - 125
Y2  - 2024/04/23
ER  -