Are Low Price and Price Matching Guarantees Equivalent? The Effects of Different Price Guarantees on Consumers’ Evaluations

Swati Verma, Abhijit Guha, Abhijit Biswas, Dhruv Grewal

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

Some retailers offer price match guarantees, whereas others offer guarantees making the same promise but labeling these low-price guarantees. Do consumers respond differently to these different price guarantee labels? To address this research question, this paper leverages insights from pricing, signaling, and regulatory focus theories to demonstrate – across multiple studies – that consumers perceive price match versus low price guarantees differently. In turn, contingent on consumers’ regulatory focus, this difference in perceptions feeds forward and influences consumers’ purchase intentions and post purchase (e.g., repurchase) intentions. This paper contributes to theory, not only by showing differences across price match versus low price guarantees, but also by being the first to jointly examine purchase and post purchase intentions relating to price guarantees. This paper also speaks to practice, noting contingencies that determine whether the price match or the low-price guarantee label should be used.

Original languageEnglish
Pages (from-to)99-108
Number of pages10
JournalJournal of Retailing
Volume95
Issue number3
Early online date10 Aug 2019
DOIs
Publication statusPublished - 1 Sep 2019

Keywords

  • Low price guarantees
  • Price guarantees
  • Price match guarantees
  • Regulatory focus
  • Signaling

ASJC Scopus subject areas

  • Marketing

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