Open Access Dissertation
Date of Award
Management and Information Systems
Retailers offer one of Low Price Guarantees (LPGs) or Price Matching Guarantees (PMGs) to signal their price position in the marketplace. Past literature has assumed that both LPG and PMG work similarly as signals of low prices, and consequently, LPG and PMG have been used interchangeably in both research and practice. In my dissertation, I posit that LPG and PMG send out different price signals, and therefore have different effects on consumers’ evaluations. Across four studies, I show that LPGs signal lower prices than PMGs, and so LPGs lead to superior evaluations in pre-purchase scenarios, especially for promotion focused consumers actively seeking the lowest price. However, if post-purchase consumers identify a lower price in the marketplace, implying a signal default, then repurchase intentions are less in the case of LPGs, especially among promotion focused consumers. In initial studies, in pre-purchase scenarios, I show that purchase intentions are higher when LPGs (vs. PMGs) are used, with the effect stronger amongst promotion focused (vs. prevention focused) consumers. In a subsequent study, which examines post-purchase scenario, I show that upon signal default, consumers’ repurchase intentions are lower when LPGs (vs. PMGs) had been used, and that these effects are stronger amongst promotion focused (vs. prevention focused) consumers. Finally, I run a study wherein the (very) same participants go through a pre-purchase scenario and a post-purchase scenario in succession, and I replicate the above effects.
Verma, Swati, "Are Low Price Guarantees And Price Matching Guarantees Created Equal: Examining The Effects Of Different Types Of Price Guarantees On Consumers’ Evaluations" (2017). Wayne State University Dissertations. 1751.