The effect of saving format (”%-off” vs. ”amount-off”) on the change of internal reference price: an empirical study

Yllka Hoxha

Abstract

Recently, price promotion campaigns have been used increasingly in the commercial sector. Since, for marketing specialists, price presentation has a strong impact on consumer perceptions, it is important to organize price promotions that consumers perceive positively. Purpose: The first objective of this study is to examine the effects on the consumer internal reference price of saving formats displayed in %-off as opposed to those expressed as amount-off. The second objective of the paper is to analyse whether the moderating effect of the discount level (low vs. high) and price confidence (low vs. high) will influence the main relationship between saving format and change of internal reference price. Methodology: In order to achieve the objective of the current research, both primary and secondary data were examined. Secondary data were gathered from reliable sources on price promotion, whereas primary data were collected through a survey. Findings: The results of the empirical research give suggestions to retailers as to which format of price promotion to select in order to diminish or avoid drastic reductions of the consumer internal reference price, considering the discount level and consumer characteristics such as price confidence.
Author Yllka Hoxha (FE)
Yllka Hoxha,,
- Faculty of Economics
Journal seriesWspółczesna Gospodarka, ISSN 2082-677X, (B 9 pkt)
Issue year2018
Vol9
No3
Pages35-46
Publication size in sheets0.55
Keywords in Englishprice promotion, saving format, internal reference price, discount level, price confidence
DOIDOI:10.26881/wg.2018.3.04
URL http://www.wspolczesnagospodarka.pl/wp-content/uploads/2018/10/Hoxha_WG_3_2018_ZiE.pdf
Languageen angielski
LicenseJournal (articles only); published final; Uznanie Autorstwa (CC-BY); with publication
Score (nominal)9
ScoreMinisterial score = 9.0, 08-10-2018, ArticleFromJournal
Ministerial score (2013-2016) = 9.0, 08-10-2018, ArticleFromJournal
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