The role of mood in price promotions

Chung‐kue Hsu (Doctoral candidate, Department of Business Administration, the University of Illinois at Urbana‐Champaign, Illinois, USA)
Ben Shaw‐Ching Liu (Assistant Professor of Marketing at the University of Illinois at Urbana‐Champaign, Illinois, USA)

Journal of Product & Brand Management

ISSN: 1061-0421

Publication date: 1 April 1998

Abstract

This paper deals with the issue of mood effects on perceived transaction value in the context of price promotions. Specifically, mood states appear to bias evaluation and judgments in mood congruent direction. Based on Grewal et al.’s model and mood congruent effects, we propose that when encountering price promotions, buyers in a positive mood, as opposed to buyers in a negative mood, will perceive a greater transaction value. Moreover, we hypothesize that the effect of advertised selling price on perceived transaction value is likely to be moderated by buyers’ mood states. Our results support these hypotheses. In addition, we also find asymmetric moderating effects on discount levels in positive mood state vs. in negative mood state. Managerial implications and future research directions are also discussed.

Keywords

Citation

Hsu, C. and Shaw‐Ching Liu, B. (1998), "The role of mood in price promotions", Journal of Product & Brand Management, Vol. 7 No. 2, pp. 150-160. https://doi.org/10.1108/10610429810216928

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Publisher

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MCB UP Ltd

Copyright © 1998, MCB UP Limited

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