The Moderating Roles of Price Consciousness, Product Knowledge, and Product Type in the Reference Price Advertisement Effect
Author(s)
Yuan-Shuh Lii , Chin-Sheng Yang ,
Download Full PDF Pages: 15-21 | Views: 697 | Downloads: 210 | DOI: 10.5281/zenodo.3702214
Abstract
Most academic research has found that an advertised reference price (ARP) has a significant and positive effect on consumers’ price perceptions and purchase intentions. However, the ARP effect may not be independent of individual differences and product types. The study presents empirical evidence on the effect of ARP on consumers’ price judgments as well as on the moderating effects of price consciousness, product knowledge, and product type. Using a 2 x 2 factorial design experiment, the results indicate that an ARP (both plausible and implausible) exerts a significant and positive effect on consumers’ price judgments. However, no significant effect was found for the three moderating variables
Keywords
Price Consciousness, Product Knowledge, Product Type
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