Consumer perceptions of refund depth and competitive scope in price-matching guarantees: effects on store patronage

The study investigates the effect of two characteristics of price-matching guarantees—the depth of refund offer and the scope of competitors eligible for price matching—on consumer perceptions of price-matching guarantee believability and value and consumer intentions to patronize the retailer. The results show that large refund offers built consumer patronage intentions by enhancing perceptions of the value of the price-matching guarantee, while simultaneously exerting a negative impact on patronage by reducing believability of the price-matching promise. The competitive scope also affected the patronage intentions by influencing the perceived value of the price-matching policy.     

Consumer responses to characteristics of price-matching guarantees: The moderating role of price consciousness

The present study develops and tests a conceptual model of consumer response to different types of price-matching characteristics (i.e., refund depth, length, and scope) across consumer segments with varying levels of price consciousness. A computer shopping simulation results show that a deep refund is interpreted as a signal of low prices by nonprice conscious consumers. However, price conscious consumers are found to associate deep refunds with increased prices, an unintended outcome for the retailer. The effects of price-matching characteristics on search and purchase behavior were also found to vary across more and less price conscious consumer segments.     

Price fairness perceptions and customer loyalty in a retail context

Loyalty and fairness are major research topics in the marketing literature. However, research examining how customer loyalty and fairness perceptions affect each other is lacking. This study examines these two topics in the context of a retailer increasing its prices, develops hypotheses, and tests these hypotheses using an experimental design approach. Results indicate that loyalty has a positive effect on fairness perceptions when price increases are low, though no such effect is found when price increases are high. Also, justifiable reasons for price increases lead to increased fairness perceptions when price increases are low, but any reason offered when price increases are high increases fairness perceptions. Whether distributive or procedural fairness influences post customer loyalty in the presence of price increases is dependent on both the level of the price increase and the reason offered for the price increase. This research provides implications for retailers and directions for future research.     

Consumers’ perceptions of GM‐free labelled foods: A sensory experiment

As of today, the views of European consumers and policy makers on GM foods are still divided. While only few GM labelled foods (‘does contain’) have entered the market, GM‐free labelling (‘does not contain’) is increasingly introduced in many EU member states. This study aims to examine whether GM‐free labelling affects consumers’ sensory profiling, emotional conceptualizations and overall liking. Based on a within‐subjects experimental design, 126 Belgian subjects evaluated GM‐free and nonlabelled samples of three food products: yogurt, traditional biscuit (‘speculoos’) and crisps. The results show that overall liking did not differ significantly according to label (no vs. GM‐free), regardless of participants’ knowledge of, or attitude towards GMOs. Furthermore, regarding the impact of GM‐free labelling on consumers’ subjective taste perceptions and emotional profiling, few significant differences were reported for crisps and traditional biscuit. Regarding the latter, less positive and more negative emotional terms have been assigned to the GM‐free labelled sample. The findings of this study should be viewed in the context of the stringent EU mandatory GM food labelling policy, which led to an increase of GM‐free rather than GM labels. Future research is needed to further underpin these findings and examine differently framed labels in various settings.     

Price-matching guarantees as signals of low store prices: survey and experimental evidence

Many retailers offer a price-matching guarantee that promises to pay consumers the difference if they find a lower price elsewhere. This article proposes that the effectiveness of a price-matching guarantee as a signal of low store prices depends on individuals’ beliefs about the degree to which other consumers in the market engage in price search, enforce price-matching guarantees, or both. Consistent with signaling theory, results of a survey and two experimental studies demonstrate that market level factors affect consumer beliefs about the extent to which others engage in price search and thereby the effectiveness of price-matching guarantees in lowering perceptions of store prices. The implications of the findings for retail strategy are discussed along with directions for future research.     

Maximizing earnings and price fairness perceptions in online consumer-to-consumer auctions

We examine the effects of starting bids on seller earnings in online consumer-to-consumer auctions. As starting bids increase, and the number of bidders increase, seller earnings increase. Both the affiliated private value model and a reference price explanation explain seller earnings. Bidder price fairness perceptions are also evaluated and, higher starting bids positively impact price fairness perceptions for winning bidders but have an adverse effect on losing bidders. In total, these findings suggest that sellers receive greater earnings as well as no adverse price fairness perceptions from winning bidders by setting starting bids higher.     

Effects of price reframing tactics on consumer perceptions

This article compares the effects of three pricing tactics—temporal reframing of prices (TRP), measure-based unit pricing (UP), and usage-based UP—on various consumer perceptions. Although these tactics are similar as they all reframe retail prices to a smaller amount, dissimilarity also exists as the respective units used for calculating these reframed prices differ. A laboratory experiment was performed to draw comparisons among the three types in a context of print advertisement. The results suggest that usage-based UP provided the most beneficial information for consumers; however, the differences between usage-based UP and TRP were not substantial.     

Home economists’ perceptions of international development

Little is known about home economists’ perceptions of international development (ID). This paper offers some insights about this issue gained from an interpretative, thematic analysis of a very small sample of participants who attended the 1996 International Federation of Home Economics Congress. The analysis suggests inconsistencies in how home economists understand ID and what is seen to constitute ID activities, a lack of consensus about the meaning of development work, a lack of certainty about the difference between criticism and critique and concern for the imposition of western ideology on southern countries. Seven themes for future research are offered to help gain a better understanding of how home economists perceive ID including: (1) the role of participatory action research, critical theory, science and critical reflective practice in ID; (2) meanings attached to the concepts of international, development and economic growth; (3) the necessity of positioning an ID philosophy in practice, curricula, research and policy; and (4) perceptions of what constitutes development activities at home and abroad.     

How price complexity takes its toll: The neglected role of a simplicity bias and fairness in price evaluations

Marketing managers commonly employ complex price plans. Surprisingly, limited and conflicting evidence reports how customers perceive and react to complex prices. This study examines perceptions about price complexity and shows that customers tend to prefer simple prices. Two experimental studies show that perceived price complexity negatively affects customer perceptions of price fairness and influences product choice because customers negatively evaluate the transparency of the firm's pricing practices and infer higher total prices. Customers comparing alternate offerings may therefore prefer simple over complex prices, even when the latter are less expensive. Study results suggest limiting price plan variations positively affects customer inferences about transparency and fairness, and thus customer choice.     

Implementing price increases in turbulent economies: Pricing approaches for reducing perceptions of price unfairness

Consumer frustration over having less money in their pockets and, at the same time facing higher prices for products and services in the marketplace, arises during turbulent economic times (e.g., post-2007). Sellers suffer increased costs and pass along increases by raising prices to consumers. The current article discusses trends in the pricing literature and in practice that sellers utilize in limiting perceptions of price unfairness, particularly when increasing price in turbulent economic times. Specifically, engaging in transparency in pricing by revealing information about price changes to the consumer during poor economic times potentially reduces perceptions of price unfairness. Using industry-common price-setting practices, shrinking product volume, providing automatic rebates promotions, or offering price-matching promotions also likely reduces perceptions of price unfairness.     

Examining differences in consumer reactions to partitioned prices with a variable number of price components

Partitioned pricing is a tactic in which a seller presents multiple prices for a single product or service instead of one, all-inclusive price. This research investigates effects of partitioned prices containing a variable number of price components, under varying levels of seller trustworthiness, and with or without the presentation of the total price. The results indicate that partitioning into a large number of price components, relative to a small number of price components, negatively affects perceived fairness and purchase intentions for less trustworthy, but not more trustworthy, sellers when the total price is not presented. However, partitioning into a large number of price components positively affects fairness and purchase intentions, regardless of seller trustworthiness, when the total price is presented. The research also examines effects of partitioning on price estimation and recall.     

Consumers’ perceptions of food waste: A pilot study of U.S. students

Participants in this pilot study are asked to rank their perceptions of food waste by choosing between pairs of four types of foods of equal weight: chicken, cheese, bread and peas. We examine whether these perceptions are consistent for proportionally different weights and whether they are linked to the perceived cost of the items. The subjects (n = 106) who are students are randomly assigned to one of three information treatments: a control, a food waste video or the text of the food waste video. We find that the subjects have very accurate perceptions of the environmental impacts of food waste and the relative wastefulness of different food groups. These perceptions are not related to cooking skills or frequency. We find that the perceptions are consistent for proportionally different weights of food: 25 and 50 g. We also find that the perceptions are linked to participants’ assessments of the relative prices of the foods. However, while the participants have somewhat accurate estimates of the relative prices, they vastly overestimate the actual prices of foods. This implies that more accurate information about the true prices could actually decrease their perceptions of the wastefulness of throwing out food. Given that the participants had highly accurate perceptions of the environmental impacts of food waste and the relative wastefulness of animal vs. plant products, we found no significant increase in overall accuracy of perceptions due to information treatment, except for bread, for those who saw the food waste video.     

Consumers’ Understanding of Privacy Rules in the Marketplace

Studies suggest the general structure of Web sites leads consumers away from demanding that online merchants take certain approaches to privacy as a condition for dealing with them. This article presents findings from a nationally representative survey showing that the absence of such a privacy marketplace can also be attributed to the public’s incomplete knowledge of privacy regulations. Most respondents correctly understood that regulations regarding merchants’ sharing information are domain specific. The respondents were only sporadically correct, however, regarding which domains have which rules. The study raises questions about the best approaches to education in the absence of a coherent national policy of privacy regulation.     

The 99 price ending as a signal of a low-price appeal

There is evidence that the rightmost digits, or endings, of retail prices can communicate meanings to consumers. To better understand how such meanings are formed, this paper addresses the question of how the 99 price ending can have a low-price meaning even though 99-ending prices tend to be higher rather than lower competitive prices. Analysis of two large samples of newspaper price advertising indicates that there is a strong and robust correlation between the use of the 99 price ending and the presence of a low-price appeal such as a claimed discount. It is suggested that the salience of price advertising leads it to dominate other sources of information in the consumer's learning of price-ending meanings.     

The Impact of Store-Price Signals on Consumer Search and Store Evaluation

Always low price (ALP) and low price guarantee (LPG) are store-price signals that retailers frequently use to induce favorable store-price image and discourage consumers from comparing prices across stores. Although both policies signal low prices, only LPG is an obligatory promise to beat rival stores’ prices. Results of two shopping simulations show that when consumer search costs are relatively low, ALP may effectively discourage consumer search whereas LPG may trigger more search. Paradoxically, consumers tend to evaluate ALP stores less favorably (as having lower integrity and higher self-serving intention) than LPG stores even when both signals appear to be credible. These findings suggest that LPG is a superior tactic for creating a favorable store image while ALP is more effective for discouraging consumer search. The results also indicate that consumers visit fewer stores when the LPG is not a credible signal of lowest market price than when it is credible. This is because consumers are inclined to either claim discounts or refunds at the non-credible LPG store or to purchase at the competing store with a lower price rather than continue searching.     

Learning good judgement: young Europeans’ perceptions of key consumer skills

A convenience sample of 27 European Union (EU) citizens and two Romanians residing in the Scottish Central Belt took part in in‐depth interviews to explore a wide range of consumer decision‐making scenarios which ranged from borrowing and saving to impulse buying and ‘value for money’ choices. The aim of the research was to identify and assess how well educated young EU consumers perceive the consumer education process and the precise nature of consumption specific skills. Given the focus of the present paper on consumer judgement, the role of values received particular attention. The Schwartz Value Inventory served as a conceptual framework for analysing the responses. The results show that the family in its role as primary creator of values was considered the most important agent in the consumer education process because it establishes a routine pattern of decision making. Further support from social networks in the wider community and real‐life experience through trial and error were cited as equally significant for acquiring useful consumer skills. There was consensus that the influence of schools was limited to providing generic citizenship education rather than specific consumer studies classes. The findings of this study point to the need for changing the current focus of consumer education and consumer policy from an emphasis on training the vulnerable consumer to a more inclusive agenda which concentrates on value education for all market players including producers and marketers.     

Shopping context and consumers’ mental representation of complex shopping trip decision problems

Depending on the shopping context, consumers may develop different mental representations of complex shopping trip decision problems to help them interpret the decision situation that they face and evaluate alternative courses of action. To investigate these mental representations and how they vary across contexts, the authors propose a causal network structure that allows for a formal representation of how context-specific benefits requirements affect consumers’ evaluation of decision alternative attributes. They empirically test hypotheses derived from the framework, using data on consumers’ mental representations of a complex shopping trip decision problem across four shopping contexts that differ in terms of opening hour restrictions and shopping purpose, and find support for the proposed structure and hypotheses.     

Innovative approaches to domestic heating: homeowners' perceptions and factors influencing their choice of heating system

The paper focuses on Swedish homeowners' perceptions of innovative heating systems, and those factors that influence their decision to adopt a new heating system. The systems studied were: district heating, heat pumps and pellet boilers. Results of two household surveys – one covering the whole of Sweden in autumn 2004 and the other in the city of Östersund in summer 2005 – revealed that approximately 80% of the survey respondents, particularly those with resistance heaters, did not intend to install an innovative heating system. Economic aspects, functional reliability and indoor air quality were found to be the most important factors influencing respondents' choice of a heating system. Survey respondents thought that a bedrock heat pump system has a number of advantages with respect to the annual cost of heating, security of fuel supply, environmental benignity, market value of the home and low greenhouse gas emission. A district heating system has advantages regarding functional reliability, system automation and time required to obtain information. A pellet boiler system has one main advantage: investment cost. Compared with homeowners having other types of heating systems, those with resistance heaters accorded more importance to investment cost due to the high cost of installing a water‐based system for heat distribution within the home.     

Teenagers’ use of alternative shopping channels: A consumer socialization perspective

The consumer socialization (CS) perspective is applied to explore factors that influence a developing consumers’ use of different shopping channels—mall and Internet. The effects of channel involvement, access to funds, access to the channel, and socialization agent communication on adolescent shopping and intentions are examined using a high school student sample. Results indicate that involvement with a channel has a major influence on agent communication, time and money spent, and future intentions to shop in that channel. Agent communication was also found to influence shopping behaviors and intentions. Differences between channels are noted. Additional findings, implications, limitations, and future research directions are also presented.