The effects of price-matching guarantees on consumer response in an online retail context: The moderating role of consumer search costs
Abstract
Purpose
The purpose of this paper is to investigate the effects of three price-matching guarantee (PMG) variables, including refund depth, refund period and competitive scope, on consumer response; the moderating role of consumer search costs is also examined.
Design/methodology/approach
This study uses a scenario simulation method with a 2×2×2 factorial design to test the research model and hypotheses.
Findings
The results indicate that refund depth has a significant effect on price perception and purchase intention, while competitive scope has a significant effect on purchase intention. In addition, the effects of both refund depth and competitive scope on price perception are moderated by consumer search costs.
Originality/value
This study is a pioneering effort to explore the effects of PMGs variables on consumer response in the context of online retailing. These findings provide several important theoretical and practical implications for the PMG strategy of online retailing.
Keywords
Acknowledgements
This research was substantially supported by the Ministry of Science and Technology (MOST) of Taiwan under grant number MOST 103-2410-H-025-020. The author would like to thank Ms. Hsiang-Hsi Fang for her assistance in collecting the sample data.
Citation
Lin, H.-H. (2015), "The effects of price-matching guarantees on consumer response in an online retail context: The moderating role of consumer search costs", Journal of Service Theory and Practice, Vol. 25 No. 6, pp. 658-679. https://doi.org/10.1108/JSTP-05-2014-0100
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited