Refund depth effects on the impact of price-beating guarantees

Desmet, Pierre; Nagard, Emmanuelle Le; Vinzi, Vincenzo Esposito

doi:10.1016/j.jbusres.2011.02.034

Cited by 7 publications

(6 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A LPG with a higher refund results in a better price-image than a low refund (Desmet and Nagard, 2005). Higher refund size not only attracts customers to a retail outlet but also positively influences their repeat purchase behaviour (Desmet et al, 2011;Dutta and Biswas, 2005), which is higher than thin refund size. Dutta and Biswas (2005) also conclude that this effect is more present mostly for consumers who are more interested in increasing value from their purchase.…”

Section: Comparing Retail Formats In Emerging Marketmentioning

confidence: 99%

“…Consumers are likely to visit a kirana store more frequently (proximity and less transportation costs are few of the reasons) than a modern retail store which leads to better relationship with former over time (Baltas and Papastathopoulou, 2003;Leszczyc and Timmermans, 2001). When consumers develop familiarity with a particular retail store (in this case kirana store), they will continue to visit the same store (Desmet et al, 2011;Pan and Zinkhan, 2006;Uusitalo, 2001) with little or no switching to other stores as long as they are served well and not influenced by any high value offer. Pan and Zinkhan (2006) find that, in emerging markets, small retailers are preferred by consumers as they feel that small store owners help the local community, and are familiar with the local store owners or workers.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Research in this stream of the literature has been done in the context of organised retail (Desmet et al, 2011;Dutta and Bhowmick, 2009;Kukar-Kinney, 2006) with a conspicuous lack of work that is based on non-organised retail formats. Some exceptions are work on non-organised/small retail stores in emerging markets such as small versus large retail stores in Mexico (Paswan et al, 2010), retail patronage in China (Uncles and Kwok, 2009), practices of small retail stores in developing economies (Lenartowicz and Balasubramanian, 2009), unsuccessful international retailers in Chile (Bianchi and Ostale, 2006) and consumers' preferences relating to department/ specialist stores in South Africa ( Jacobs et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Comparing retail formats in an emerging market

Saini

Sahay²

2014

Journal of Indian Business Research

View full text Add to dashboard Cite

Purpose – This study aims to examine the importance of credit and low price guarantee (LPG) on consumer purchase intention across types of retail store formats in an emerging market context. Design/methodology/approach – A 2 (kirana/modern retail)×2 (high/low LPG)×2 (credit/no credit) experimental design was used for this study. A sample of 200 respondents was asked about their purchase intention for a newly introduced hypothetical toothpaste brand and six hypotheses were tested. Findings – Findings show that credit and level of LPG determine consumer's purchase intention across store formats. The presence of credit and high LPG increases the purchase intention; however, relatively importance of these two varies by type of store. The absence of credit at kirana store definitely reduces the buying intention, while same is not true for modern retail store, where level of LPG is more important than the credit. Interestingly, buyer is likely to discount high LPG for a month's credit offered by a kirana store. Practical implications – The study can help practitioners and scholars to understand consumer responses to credit and LPG in buying decisions, and subsequently in designing a better product offer at a particular store format in emerging markets. Originality/value – Important insights are provided about the consumer behavior resulting from the presence or absence of credit and high or low levels of LPG in an emerging market context. The study also has public policy implications in a country where FDI in retail is a hotly debated topic.

show abstract

Section: Comparing Retail Formats In Emerging Marketmentioning

confidence: 99%

Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Comparing retail formats in an emerging market

Saini

Sahay²

2014

Journal of Indian Business Research

View full text Add to dashboard Cite

show abstract

“…In the context of price matching policy, the notion of fractional price matching is akin to the concept of refund‐depth that has been studied recently (e.g., Desmet et al. 2012, Hviid and Shaffer 2012, Tumennasan 2011). 9 Tumennasan (2011) considers two identical firms competing in two‐stage: each firm selects its capacity in the first stage, and each chooses its fractional price matching policy in the second stage.…”

Section: Literature Reviewmentioning

confidence: 99%

Fractional Price Matching Policies Arising from the Ocean Freight Service Industry

Lee

Tang

Yin

et al. 2015

Production and Operations Management

View full text Add to dashboard Cite

W e consider a situation in which shippers (customers) can purchase ocean freight services either directly from a carrier (service provider)in advance or from the spot market just before the departure of an ocean liner. The price is known in the former case, while the spot price is uncertain ex-ante in the latter case. Consequently, some shippers are reluctant to book directly from the carrier in advance unless the carrier is willing to "partially match" the realized spot price when it is lower than the regular price. This study is an initial attempt to examine if the carrier should bear some of the "price risk" by offering a "fractional" price matching contract that can be described as follows. The shipper pays the regular freight price in advance; however, the shipper will get a refund if the realized spot price is below the regular price, where the refund is a "fraction" of the difference between the regular price and the realized spot price. By modeling the dynamics between the carrier and the shippers as a sequential game, we show that the carrier can use the fractional price matching contract to generate a higher demand from the shippers compared to no price matching contract by increasing the "fraction" in equilibrium. However, as the carrier increases the "fraction," the carrier should increase the regular price to compensate for bearing additional risk. By selecting the fractional price matching contract optimally, we show that the carrier can afford to offer this price matching mechanism without incurring revenue loss: the optimal fractional price matching contract is "revenue neutral." 3 revisions. discussion with an executive of a leading (ocean and air) logistics service provider, we learned that every contract is negotiated between the carrier and the

show abstract

“…The rate parity enables OTAs the potential to provide price protection to consumers, to reduce their perceived price risk. Desmet, Nagard, and Vinzi (2012) examine how consumers react to price-matching guarantee and its perceptions and patronage intentions. While there has been some studies to explore steering from a macro or a personalization perspectives (Demirçiftçi et al, 2010;Hannak et al, 2014 ;), and given the importance of rate parity in e-tourism, it is surprising that there is few evidence about the performance of price steering.…”

Section: Introductionmentioning

confidence: 99%

Consumers’ Perceptions of Price Steering in Shopping Online for Tourism

Chapuis¹

2021

jmr

View full text Add to dashboard Cite

When confronting discriminations during the buying process, the consumers may perceive unfair transactions and some untrustworthy providers. Price steering is a common manipulation of listing offers tailored to a customer’s request. The consumers receive a same-products list in a different order for the same query on e-shop. The study questions whether its performance is related to discrimination among consumers. This paper mobilizes the theory of Justice to explore perceptions of fairness and trust in the practice of price steering. The proposed framework states that the post-purchase stage reveals perceptions intervening in the effect of price steering on willingness to pay.An experiment with a total 883 respondents is simulating an online shopping. The list of options shown online is manipulated. This study documents the main effect of price steering such as a higher willingness to pay and driving online purchasers toward certain choices. This effect is found to generate up to 20% of extra revenue. The analysis also finds a negative influence on perceptions with no difference between the discriminated segments of the market. Implications for researchers and managers: the pricing schemes should be carefully tailored to maintain fairness, as well as profitability, by considering rate parity across online channels and purchasing experiences.

show abstract

Refund depth effects on the impact of price-beating guarantees

Cited by 7 publications

References 37 publications

Comparing retail formats in an emerging market

Comparing retail formats in an emerging market

Fractional Price Matching Policies Arising from the Ocean Freight Service Industry

Consumers’ Perceptions of Price Steering in Shopping Online for Tourism

Contact Info

Product

Resources

About