Building trust to increase purchase intentions: The signaling impact of low pricing policies

Research output: Contribution to journalArticle

Abstract

We examine the differential signaling impact of two low pricing policies, Price Matching Guarantees and Everyday Low Prices, on consumers' trusting beliefs and purchase intentions. We demonstrate that both PMG and EDLP pricing policies signal stores' ability to offer lower prices. However, whether these sellers were perceived as benevolent, and-consequently-consumers' purchase intentions, varied critically depending upon price uncertainty. Perceived benevolence and purchase intentions were significantly higher [lower] for sellers offering PMG than EDLP when price dispersion was high [low]. Our findings offer insights into whether and under what conditions firms should adopt these low pricing policies.

Original languageEnglish (US)
Pages (from-to)384-394
Number of pages11
JournalJournal of Consumer Psychology
Volume22
Issue number3
DOIs
StatePublished - Jul 1 2012

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Costs and Cost Analysis
Beneficence
Aptitude
Uncertainty
Pricing policy
Purchase intention
Everyday low price
Seller
Price uncertainty
Benevolence
Price dispersion
Price-matching guarantees

Keywords

  • Consumer trust
  • Pricing perceptions
  • Pricing policies

ASJC Scopus subject areas

  • Applied Psychology
  • Marketing

Cite this

Building trust to increase purchase intentions : The signaling impact of low pricing policies. / White, Tiffany Barnett; Yuan, Hong.

In: Journal of Consumer Psychology, Vol. 22, No. 3, 01.07.2012, p. 384-394.

Research output: Contribution to journalArticle

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