An investigation of consumer evaluations of reference price discount claims

Abstract

Utility, correspondent inference, and adaptation-level theories were used as bases for examining the effects of merchant-supplied reference prices on consumers' internal reference prices. Reference prices, along with two attribution theory-based contextual variables, consistency and distinctiveness, were manipulated in a 2×2×2 design. The results supported the role of merchant-supplied reference prices in influencing consumer perceptions, but failed to provide statistical support for the hypothesized effects of the contextual variables.