Journal article
Quality perception and monetary sacrifice: a comparative analysis of discount and fixed prices
The journal of product & brand management, v 10(3), pp 170-184
01 Jun 2001
Abstract
In this article we analyze price discounts and fixed price offers in terms of their comparative impact on consumer valuation of products. Using a model of consumer valuation, we explore the interaction between the negative quality effect and the positive monetary sacrifice effect associated with price discounts. This model suggests that intermediate levels of price discounts will be more desirable than a fixed price offer. However, a fixed price offer may be more desirable than both high and low levels of price discounts. The results from an experiment conducted to test this model showed support for the predictions from the model.
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23 citations in Scopus
Details
- Title
- Quality perception and monetary sacrifice: a comparative analysis of discount and fixed prices
- Creators
- Vibhas Madan - Associate Professor and Departmental Head, Economics and International Business Department, Drexel University, Philadelphia, Pennsylvania, USARajneesh Suri - Assistant Professor, Marketing Department at Drexel University, Philadelphia, Pennsylvania, USA
- Publication Details
- The journal of product & brand management, v 10(3), pp 170-184
- Publisher
- MCB UP Ltd
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Scopus ID
- 2-s2.0-84986180666
- Other Identifier
- 991014878053004721