The effects of lower prices on perceptions of brand quality: a choice task perspective

DelVecchio, Devon; Puligadda, Sanjay

doi:10.1108/10610421211264946

Cited by 23 publications

(16 citation statements)

References 70 publications

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“…According to Kashi (2013) perceived quality is an important variable which has impact on purchase intention. During the evaluation of two different unknown brands, price level can play a significant role; a consumer could perceive a higher priced product as a higher quality product (DelVecchio & Puligadda, 2012).…”

Section: Review Of Literaturementioning

confidence: 99%

“…But the study of Davis, Inman, and McAlister (1992) evidenced that sales promotion does not necessarily undermine perceived quality. According to DelVecchio and Puligadda, (2012) sales promotions do not have negative impact and can be used to the extent they are profitable. Higher quality is identified as one of the utilitarian benefit of sales promotion (Chandon et al, 2000).…”

Section: Review Of Literaturementioning

confidence: 99%

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Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation

Sinha

Verma

2018

Global Business Review

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Sales promotion is known for providing additional benefits to the consumers and these benefits may have an impact on the development of consumer-based brand equity. Although previous studies have reported a positive influence of sales promotion on brand equity, but the impact of sales promotion’s benefits (i.e., hedonic and utilitarian benefits) on brand equity is less understood. This study examined the possible influence of sales promotion’s hedonic and utilitarian benefits on four components of brand equity (i.e., brand awareness, brand association, perceived quality and brand loyalty). A model is proposed to show the relations between sales promotion’s benefits and component of brand equity. This study includes a sample of 265 consumers of fast-moving consumer goods from Madhya Pradesh state in India. A covariance based structure equation modelling technique was used for data analysis and interpretation. Research findings revealed that the utilitarian benefit of sales promotion has maximum impact on brand loyalty, while the hedonic benefit of sales promotion has maximum impact on brand association. It provides a way of utilizing the benefits of sales promotion to create and support brand equity. Hedonic benefits of sales promotion can be utilized to make consumers associated with the brand, while utilitarian benefits of sales promotion can be utilized to enhance a repeat purchase of the brand.

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Section: Review Of Literaturementioning

confidence: 99%

Section: Review Of Literaturementioning

confidence: 99%

Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation

Sinha

Verma

2018

Global Business Review

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“…Though price reduction would help the firms to sell more in the short run, it would affect the revenues in the long run (Jedidi et al , 1999; Pauwels et al , 2002; Zoellner and Schaefers, 2015). Previous research established that price cuts and promotions erode brand equity, which the brand had gained over a period of time because the brands would get trapped in a low-quality image and generate negative brand associations (Yoo et al , 2000; DelVecchio and Puligadda, 2012; Horváth and Fok, 2013; Rao and Schaefer, 2013). These brands would also be vulnerable to the price reduction strategy of other brands (Bertini and Wathieu, 2010).…”

Section: Discussionmentioning

confidence: 99%

Price reduction strategy

Abdul¹

2017

APJML

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Purpose The purpose of this paper is to address consumers’ post-purchase perceptions toward the brand when it adopts price reduction strategy. The study specifically conceptualizes the effect of consumers’ price unfairness perceptions of past purchase (PUPoPP) on customer-based brand equity (CBBE) with a moderating effects of elapsed time since purchase (ETSP) and magnitude of price reduction (MPR) in situations where consumers were aware of the reduction in price of the product that they had purchased earlier. Design/methodology/approach A survey was conducted among consumers who were aware of the reduction in the price of the computer laptop which they had purchased earlier. A sample size of 214 respondents was utilized for the study. The hypotheses were tested by using partial least squares-structural equations modeling. Findings The results of the study show that there is a significant negative impact of PUPoPP on CBBE and the ETSP was found to enhance CBBE and also weaken the negative effect of PUPoPP on CBBE. Furthermore, the MPR was found to strengthen the negative effect of PUPoPP on CBBE. Originality/value The findings of this study are unique and contribute to both pricing and branding areas of research. While extant research in these areas has focused on price fairness perceptions in situations where the price of future purchase increases, particularly for frequently purchased non-durable goods, this study explored PUPoPP in situations where the firm reduces the price of a durable good such as a computer laptop.

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“…On the contrary, Mohd Suki (2013a) put forward that Malaysian studentswere intended to purchase a smartphone though its price was relatively high to enhance their image. Probably, this specific attitude may be interacted with price signalizing theory where consumers consider lower prices as substandard product quality (DelVecchio & Puligadda, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

A study on factors influencing young consumers’ smartphone brand preference in Erzurum, Turkey

Çelik¹,

Eygü²,

Oktay³

2015

EJBE

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Young consumers are the most important users of advanced information and communication technologies among others. Particularly, since the gradually increasing smartphone use among young consumers is taken into consideration, an empirical evidence about their purchase behavior in terms of brand perception may contribute to the existing marketing literature. For this purpose, the main objective of this paper is to determine factors that may possibly contribute to young consumers' smartphone brand preference in a developing country with a particular emphasis on undergraduate students in Turkey. A written-questionnaire is conducted among 1,135 undergraduate students at a well-established university in Turkey. The dependent variable of this study is smartphone brand with a four-category. The data are analyzed using a multinomial logit model due to the unordered nature of the dependent variable. Estimation results suggest monthly individual income and smartphone use in years have an increasing and decreasing impact on the use of a specific brand, respectively. Results also reveal that monthly household income, price of current smartphone, product design, product weight, and after purchase services have both increasing and decreasing influence regarding a specific brand preference. The outcome of this relatively comprehensive study may provide a successful guidance for future marketing strategies and policies.

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The effects of lower prices on perceptions of brand quality: a choice task perspective

Cited by 23 publications

References 70 publications

Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation

Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation

Price reduction strategy

A study on factors influencing young consumers’ smartphone brand preference in Erzurum, Turkey

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