Retail “sale” advertising, perceived retailer credibility, and price rationale,

Abstract

Retailers often advertise products at "reduced" prices. Past research has suggested this is an effective way to appeal to consumers; but recent evidence indicates growing consumer mistrust of this type of advertising claim. This paper presents an experiment that suggests consumer perceptions of retail price reductions may depend on the rationale the retailer provides for the reductions. Directions for future research are discussed.