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Brand evaluations: a comparison of fixed price and discounted price offers

Rajneesh Suri (Assistant Professor of Marketing, Lebow College of Business, Drexel University, Philadelphia, Pennsylvania, USA)
Rajesh V. Manchanda (Assistant Professor of Marketing, Faculty of Management, University of Manitoba, Winnipeg, Canada)
Chiranjeev S. Kohli (Professor of Marketing, College of Business, California State University, Fullerton, USA)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 1 June 2000

Abstract

While fixed price offers are quite common in the marketplace, there is limited empirical evidence that documents the effectiveness of these offers in comparison to price discounting tactics. Drawing on information processing theory we provide a conceptual framework that explains the differential impact of fixed price and price discounting tactics. The empirical study shows that consumers’ perceptions of quality and value for the product were higher when price information was presented in a fixed format (versus a discount). Furthermore, perceptions of sacrifice were higher in the discount format than the fixed price format. Overall, this study finds empirical support for the notion that fixed price formats may be more effective than price discounts.

Keywords

Citation

Suri, R., Manchanda, R.V. and Kohli, C.S. (2000), "Brand evaluations: a comparison of fixed price and discounted price offers", Journal of Product & Brand Management, Vol. 9 No. 3, pp. 193-207. https://doi.org/10.1108/10610420010332458

Publisher

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MCB UP Ltd

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