Although the use of color in promotional ads is ubiquitous in the market, little is known about the impact of color on price perception. This research reports findings from four studies that assessed the impact of red on consumers' perceptions of savings. These studies reveal that the effect of red versus black prices on perception of savings is moderated by gender. Male consumers perceived greater savings when prices were presented in red than when presented in black (studies 1a and 1b). The effect persists in a multi-ad context (study 2). However, this effect of red abated when the level of involvement in the task was high (study 3). Women appeared to be naturally inclined toward greater elaboration of the ad and showed greater price recall. Theoretical and practical implications are discussed.
- Consumer psychology
- Gender effects