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Reference prices in retail advertisements: moderating effects of market price dispersion and need for cognition on consumer value perception and shopping intention

Bidisha Burman (Department of Marketing, Appalachian State University, Boone, USA)
Abhijit Biswas (Department of Marketing, School of Business Administration, Wayne State University, Detroit, Michigan, USA)

Journal of Product & Brand Management

ISSN: 1061-0421

Article publication date: 1 October 2004

Abstract

One main concern regarding the use of reference prices in advertisements relates to the possibility of deception due to consumers' positive response towards exaggerated or implausible claims. This paper examines the moderating roles of a contextual variable‐market price dispersion for a product category, and that of an individual level variable‐need for cognition, in influencing consumer evaluation of reference prices across two experiments. The results support the hypothesized effects of need for cognition and demonstrate that, for low need, for cognition individuals, increasing the level of reference price results in positive effects on value perception and shopping intention.

Keywords

Citation

Burman, B. and Biswas, A. (2004), "Reference prices in retail advertisements: moderating effects of market price dispersion and need for cognition on consumer value perception and shopping intention", Journal of Product & Brand Management, Vol. 13 No. 6, pp. 379-389. https://doi.org/10.1108/10610420410560280

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited