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Article
Publication date: 1 February 1978

Mai Anttila

Price is a significant determinant of consumers' purchase decisions. It is assumed in this study that the analysis of consumer price perception is of vital importance to…

1329

Abstract

Price is a significant determinant of consumers' purchase decisions. It is assumed in this study that the analysis of consumer price perception is of vital importance to understanding the effects of price information on purchase decisions. Earlier it has been studied experimentally in isolation, how a single price cue affects consumer perception of a product's quality. In this study there is the main difference that the influence of an array of prices for the product on the consumer's price perception is examined experimentally at the same time.

Details

Management Research News, vol. 1 no. 2
Type: Research Article
ISSN: 0140-9174

Book part
Publication date: 13 July 2011

Kent B. Monroe

This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on…

Abstract

This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on psychophysics and adaptation-level theory the early research efforts concentrated on validating two important concepts relative to behavioral pricing research: reference price and acceptable price range. Then the behavioral pricing research program expanded to explore how the context of a purchase situation, including the structure of the prices available for judgment, influences buyers' price perceptions and willingness to buy. In the early years his research included pricing models and research on patronage behavior. Subsequently, concentrating primarily on behavioral pricing research, he began to integrate findings from the research program into examining how various sellers pricing strategies and tactics influence buyers' judgments and purchase decisions. These efforts led to the first edition of his book Pricing – Making Profitable Decisions published in 1979. The book was subsequently revised and expanded in 1990 and again in 2003.

Details

Review of Marketing Research: Special Issue – Marketing Legends
Type: Book
ISBN: 978-0-85724-897-8

Article
Publication date: 30 May 2008

Juha Munnukka

The purpose of this paper is to investigate customers' intentions to purchase mobile communications services and how these intentions are affected by the customers' price

13228

Abstract

Purpose

The purpose of this paper is to investigate customers' intentions to purchase mobile communications services and how these intentions are affected by the customers' price perceptions in two customer segments – a mobile segment and a combined segment. A further aim was to gain insight into the formation of price perceptions, and customer characteristics that underlie the differences between purchase intentions and price perceptions.

Design/methodology/approach

The study was conducted in the Finnish mobile services market. The sample data were collected through a postal survey (n=3,000) sent to customers of a Finnish teleoperator. In analyzing empirical data the explanatory factor analyses, linear regression analyses, and analysis of variance were applied.

Findings

The results indicated that a significant and positive relationship exists between customers' price perceptions and their purchase intentions, and that the formation of price perceptions is significantly influenced by satisfaction with pricing and services. Price transparency was found to be negatively associated with customers' price perceptions. Gender, age, and experience of service use were found to explain the differences in customers' perceptions.

Practical implications

By segmenting customers according to the research results and targeting pricing schemes specific to these segments would potentially improve customers' price perceptions and their intentions to purchase mobile services. The study also supported the use of multi‐dimensional pricing schemes as it was found to positively influence customers' price perceptions.

Originality/value

This paper provides new practical and theoretical insights into the relationship between purchase intentions and price perception, and into the formation of the price perceptions of mobile services customers.

Details

Journal of Product & Brand Management, vol. 17 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 30 October 2009

Juan (Gloria) Meng and Suzanne Altobello Nasco

The purpose of this paper is to apply Lichtenstein et al.'s price perception model to American, Chinese and Japanese cultures, to test the measurement equivalence across three…

2839

Abstract

Purpose

The purpose of this paper is to apply Lichtenstein et al.'s price perception model to American, Chinese and Japanese cultures, to test the measurement equivalence across three cultures, and to compare the price perception constructs across three cultures using equivalent instruments.

Design/methodology/approach

A questionnaire is used to collect information on more than 500 student respondents from America, China, and Japan.

Findings

Utilizing structural equation modeling, a 21‐item version of Lichtenstein et al.'s scale is created that has good fit across the three cultures. In progressively constraining tests, good model fit is found when constraining or partially constraining the factor loadings, error correlations, factor variances, and correlations between factors to be equal across three cultures tested. In addition, after creating price perception subscales, no significant differences emerge between Chinese, Japanese, and US consumers on value consciousness or price/quality schemas. Significant differences emerge on price consciousness, prestige sensitivity, and sales proneness.

Practical implications

The 21‐item scale of Lichtenstein et al.'s price perception model can be generalized to both China and Japan. The primary conclusions (i.e. that Chinese consumers reported significantly higher price and prestige sensitivity, compared to USA and Japanese consumers, while US consumers showed higher levels of sales proneness than Chinese and Japanese consumers) provide a rationale for international retailers to develop different pricing and promotional strategies when expanding their business into these three cultures.

Originality/value

A 21‐item scale to measure five of Lichtenstein et al.'s price perception constructs that has been validated through measurement invariance tests and compared across consumers in China, Japan, and the USA is provided.

Details

Journal of Product & Brand Management, vol. 18 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 February 2003

Chatura Ranaweera and Andy Neely

This paper presents a holistic model of customer retention incorporating service quality perceptions, price perceptions, customer indifference and inertia. Data from a large‐scale…

7543

Abstract

This paper presents a holistic model of customer retention incorporating service quality perceptions, price perceptions, customer indifference and inertia. Data from a large‐scale postal survey of telephone users in England showed that perceptions of service quality have a direct linear relationship with customer retention even in mass services with low customer contact. Price perceptions and customer indifference too were found to have a direct linear effect on retention. Furthermore, it was also seen how both price perceptions and customer indifference moderated the relationship between service quality perceptions and customer retention. A linear relationship between inertia and customer retention was not found. Furthermore, there was evidence to indicate that inertia was a relatively unstable condition and that reliance by service providers on inertia to retain customers could indeed be a risky strategy.

Details

International Journal of Operations & Production Management, vol. 23 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 19 April 2022

Sunhee Seo, Kawon Kim and Soo Yeon Im

This study aimed to investigate the effects of accessibility, quality perception, and price perception on consumer satisfaction with imported fruit, specifically imported Asian…

Abstract

Purpose

This study aimed to investigate the effects of accessibility, quality perception, and price perception on consumer satisfaction with imported fruit, specifically imported Asian pears. The moderating role of the country image was also assessed.

Design/methodology/approach

A total of 413 Americans aged over 19 years who had purchased imported Asian pears were surveyed through an online questionnaire. Structural equation modeling and multiple group analysis were conducted to test the hypotheses.

Findings

Accessibility, quality perception, and price perception exhibited a significant impact on consumer satisfaction with imported Asian pears and influenced behavioral intention through satisfaction. Multiple group analysis results revealed a moderating effect of the country image on these relationships. Accessibility had a significant impact on consumer satisfaction of consumers with a high country image of Korea, whereas prices had no significant impact on them. In contrast, price was determined as a key satisfaction factor for consumers with a low country image of Korea, whereas accessibility did not have a significant impact.

Originality/value

This study contributes to the literature on imported fruits and provides practical implications for promoting the consumption of imported Asian pears in the US.

Details

International Journal of Emerging Markets, vol. 18 no. 12
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 6 March 2007

Andreas Herrmann, Lan Xia, Kent B. Monroe and Frank Huber

This paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on satisfaction…

14660

Abstract

Purpose

This paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on satisfaction judgments. Further, it seeks to examine specific factors that influence fairness perceptions including price perception and consumer vulnerability.

Design/methodology/approach

The study is conducted in the context of automobile purchases in major German car dealerships. Based on a theoretical conceptualization of the constructs and an empirical pretest, 246 car buyers were surveyed and their fairness perceptions and satisfaction judgments with the car buying process measured.

Findings

The research shows that price perceptions directly influence satisfaction judgments as well as indirectly through perceptions of price fairness. Results also indicated that consumers' vulnerability, which is induced by a perceived demand‐supply relationship and the urgency of need from the consumers' side, had a negative effect on perceived price offer fairness.

Research limitations/implications

The research demonstrated the influence of perceived price fairness on satisfaction judgments empirically. The study was conducted in the context of car purchases and the generalizability of the model should be further tested.

Practical implications

The effect of consumer vulnerability implies that sellers should not only avoid exploiting their customers but should also anticipate consumers' potential feelings of being exploited. Being sensitive to the buyers’ psychological state and assuring buyers of fair treatment will enhance perceptions of price fairness without changing the price offer.

Originality/value

Both the direct and indirect effects of price perception on satisfaction judgment were examined in the paper. Specifically, the influences of consumer vulnerability and price procedure fairness on satisfaction judgments are new and contribute to the dual‐entitlement principle and our existing knowledge in price fairness.

Details

Journal of Product & Brand Management, vol. 16 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 June 2010

Stephan Zielke

The purpose of this paper is to analyse how five price image dimensions influence shopping intentions for different store formats.

7358

Abstract

Purpose

The purpose of this paper is to analyse how five price image dimensions influence shopping intentions for different store formats.

Design/methodology/approach

In total, 306 espondents evaluated three stores from a list of 18 retailers on a multiple‐item scale, resulting in 918 price‐image measurements. Based on these data, a covariance structure analysis in Mplus analyses the direct and indirect impact of five price image dimensions on shopping intentions. A multiple group analysis identifies differences in the effects between store formats.

Findings

The impact of image dimensions differs substantially between store formats. For discount stores, value for money is by far the most important image dimension. For supermarkets, price level and value are equally important, but price perceptibility and price processibility are also relevant. For organic food stores, value is most important, followed by price processibility and evaluation certainty. For the weekly market, price perceptibility plays a key role in explaining customers' shopping intentions.

Practical implications

The results carry several implications for retail pricing practice, as they indicate that retailers should not focus exclusively on price level competition. Depending on the store format, retailers should attach importance to the price image dimensions in varying degrees.

Originality/value

The study contributes to the literature by: advancing price‐image measurement; modelling direct effects on shopping intentions; analysing a number of different indirect effects in an integrated model; and taking the moderating effects of store format into account.

Details

European Journal of Marketing, vol. 44 no. 6
Type: Research Article
ISSN: 0309-0566

Keywords

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

Open Access
Article
Publication date: 13 July 2021

A. Celil Cakici and Sena Tekeli

This study aims to reveal the impact of consumers’ price sensitivity on their purchase intention within the scope of supermarkets. Besides, the study aims to examine the impact of…

9748

Abstract

Purpose

This study aims to reveal the impact of consumers’ price sensitivity on their purchase intention within the scope of supermarkets. Besides, the study aims to examine the impact of consumers’ price sensitivity on their price perception level and emotions and the impact of consumers’ price level perception and emotions toward supermarkets on their purchase intention. It also aims to detect the mediating effects of consumers’ price level perception and emotions toward supermarkets between their price sensitivity and purchase intention.

Design/methodology/approach

The quota sampling method was used to form the study sample. The population was 20–69-year-old consumers. The study sample included 513 consumers, 276 of whom were men, and 237 of whom were women. Data were collected via a questionnaire by the researchers in Mersin’s (Turkey) five central counties. Explanatory and confirmatory factor analyses and structural equation models were used to analyze data.

Findings

Consumers’ price sensitivity, perception of cheapness, perception of expensiveness and positive emotions toward supermarkets affect their purchase intention. Besides, price sensitivity affects their perception of cheapness while it does not affect their perception of expensiveness. It influences negative emotions, but not on positive emotions. Consumers’ perception of cheapness and perception of expensiveness have impacts on positive emotions toward supermarkets. It was additionally discovered that perception of cheapness and perception of expensiveness affected negative emotions toward supermarkets. A contributed finding was that perception of cheapness had a partial mediating role between price sensitivity and purchase intention.

Practical implications

The study provides managerial implications in terms of understanding consumers’ behavioral changes, developing effective pricing strategies and achieving competitive advantages over the other retailing companies.

Originality/value

The study illustrates that consumer behavior can be explained by a theoretical construct considering the price perception levels and emotions toward supermarkets in examining the effect of consumers’ price sensitivity on their purchase intention. Therefore, it contributes to explain consumers’ behavior by bringing the stimulus–organism–response (SOR) model into a theoretical construct.

研究目的

本研究旨在揭示在超級市場的研究範疇內,消費者的價格敏感度對其購買意圖的影響。此外,本研究亦擬探討消費者的價格敏感度對其價格水平感知及情緒的影響,以及消費者的價格水平感知及對超級市場的情感對其購買意圖的影響。本研究亦旨在檢測在消費者的價格敏感度與購買意圖之間,其價格水平感知及對超級市場的情感兩者的仲介效果。

研究的設計/方法/理念

本研究用了配額抽樣法來建立研究樣本。研究的對象為20嵗至69嵗的消費者。研究樣本包括513名消費者,其中276人為男性,237人為女性。數據由研究人員透過一項問卷調查在梅爾辛省 (土耳其) 的五個中心縣取得。使用探索性因素分析,驗證性因素分析及結構方程模型來分析數據。

研究結果

研究結果顯示,消費者的價格敏感度,廉價感,對昂貴的看法及對超級市場的正面情緒,均影響其購買意圖。此外,消費者的價格敏感度會影響其廉價感,唯其對昂貴的看法則不受影響。價格敏感度對負面情緒帶來影響,但正面情緒則不受影響。消費者對廉價的看法及對昂貴的看法均影響他們對超級市場的正面情緒。研究亦發現,廉價感及對昂貴的看法均影響消費者對超級市場的負面情緒。貢獻的發現是:廉價感於價格敏感度與購買意圖之間扮演部分仲介角色。

實際的意義

本研究對管理有其作用。研究結果幫助管理人員更了解消費者行為的改變,發展有效的定價策略,以及比其它零售公司更能發展競爭優勢。

研究的原創性/價值

本研究闡明消費者行為是可以利用一個理論構建來說明的,而這個理論構建是透過考慮價格水平感知及對超級市場的情感來探討消費者的價格敏感度對其購買意圖的影響。因此,本研究透過把「刺激 – 機制 – 反應」模型變成為一個理論構建來說明消費者的行為, 在這方面,本研究是有其貢獻的.

Details

European Journal of Management and Business Economics, vol. 31 no. 1
Type: Research Article
ISSN: 2444-8451

Keywords

1 – 10 of over 66000