Low price signal default: an empirical investigation of its consequences |
| |
Authors: | Sujay Dutta Abhijit Biswas Dhruv Grewal |
| |
Institution: | (1) School of Business Administration, Wayne State University, Detroit, MI 48202, USA;(2) Department of Marketing, Babson College, Babson Park, MA 02457, USA |
| |
Abstract: | Low-price guarantees (LPG) signal the market position of a seller’s offer price and promise to compensate consumers in case
that information is erroneous. In this research, we demonstrate that when retailers default on the information provided by
an LPG, consumer perceptions of the retailer suffer, but the extent of the damage depends on the conditions associated with
the default. On the basis of attribution theory, we posit that consumers may attribute default to the retailer’s opportunism
but emphasize this attribution differently in various default conditions. Furthermore, we show that the restoration of consumer
perceptions after a refund depends on consumers’ focus in terms of the signal itself. If they consider the protective, compensatory
function of a low price signal, their post-refund outcomes are more favorable; when they focus on the informational function,
these outcomes are less favorable. We discuss the theoretical and practical implications of these findings.
|
| |
Keywords: | Low-price guarantee Signal default Attribution theory Information focus Protection focus |
本文献已被 SpringerLink 等数据库收录! |
|