Logo image
Back
The effects of the timing of post-purchase price reductions and brand strength on consumers' price unfairness perceptions
Dissertation   Open access

The effects of the timing of post-purchase price reductions and brand strength on consumers' price unfairness perceptions

Umit Koc
Doctor of Philosophy (Ph.D.), Drexel University
Jun 2014
DOI:
https://doi.org/10.17918/etd-4549
pdf
Koc_Umit_20142.47 MBDownloadView
PDF Open Access Open Access (License Unspecified)

Abstract

Industrial management Pricing--Mathematical models Marketing
Pricing literature examined the impact of price increases or decreases on price unfairness perceptions in pre-purchase contexts but post-purchase price reduction context received limited attention. Moreover, the impact of brand strength on perceptions of price unfairness in a post-purchase price reduction context has received little attention despite evidence that shows that brand names impact consumers' internal reference price and quality perceptions. Hence, this dissertation aims to close this gap by inquiring about the impact of brand strength and depth of post-purchase price reductions on price unfairness perceptions over time by relying on construal level theory and acquisition-transaction value model. In two experiments, four new scales that are suitable for post-purchase price reduction context were developed and refined: Perceived price unfairness, perceived negative transaction value, perceived loss in acquisition value, and internal reference price. The model was tested with a structural equations model. In experiment one, when the temporal distance was proximal, advertised selling price, which is a low level construal, was more influential on perceived loss in acquisition value. On the other hand, when the temporal distance was far, perceived quality, which is a high level construal, was more influential on perceived loss in acquisition value in line with predictions of construal level theory that assert high level construals are more influential at far but low level construals are more impactful at proximal temporal distance. Consumers perceived more price unfairness and negative transaction value when the post-purchase price reduction was proximal to their purchase than when it was far. In the high price reduction condition, consumers perceived higher perceived negative transaction value and higher perceived price unfairness than in the low price reduction condition. In experiment two, temporal distance moderated the relationship from advertised selling price to perceived negative transaction value such that advertised selling price was influential on perceived negative transaction value at proximal temporal distance but not at far temporal distance as expected by construal level theory.

Metrics

37 File views/ downloads
31 Record Views

Details

Logo image