Journal article
Comparing fixed price and discounted price strategies: the role of affect on evaluations
The journal of product & brand management, v 11(3)
01 Jun 2002
Abstract
Price is an important variable because it has a direct impact on a company's profitability. However, there is limited evidence to support the effectiveness of competing strategies of fixed pricing and discounted pricing. As a result, both strategies are practised extensively in the industry. This paper draws on theories on affect, information processing, and pricing to provide a conceptual framework. The aim is to examine the effect of fixed pricing and discounted pricing on consumers' affect and evaluation of products. Results from an experiment indicate that a fixed price format elicits more positively valenced thoughts and stronger positive affect than a discounted price format. This affective response, in turn, results in a less thorough processing of price information and, consequently, higher perceptions of quality and value for the fixed price format. Managerial implications of these findings are discussed.
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26 citations in Scopus
Details
- Title
- Comparing fixed price and discounted price strategies: the role of affect on evaluations
- Creators
- Rajneesh Suri - Assistant Professor of Marketing, LeBow College of Business, Drexel University, Philadelphia, Pennsylvania, USARajesh V Manchanda - University of Manitoba, Winnipeg, CanadaChiranjeev S Kohli - Cal State Fullerton, USA
- Publication Details
- The journal of product & brand management, v 11(3)
- Publisher
- MCB UP Ltd
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Scopus ID
- 2-s2.0-84986097739
- Other Identifier
- 991014877684704721