ArticlePDF Available

Effects of price discount on consumers’ perceptions of savings, quality, and value for apparel products: mediating effect of price discount affect

Authors:

Abstract

Extending the price–quality–value model (Monroe and Krishnan in The perception of merchandise and store quality 209–232, 1985) and means-end model (Zeithaml in J Mark 52:2–22, 1988), we developed a conceptual model to investigate the mediating role of price discount affect (feeling aroused by price discounts) in the relationship between price discounts and consumers’ perceptions (perceived savings, quality, and value) and in the relationship between perceived value and purchase intentions in the context of online apparel products. A between-subject experimental design with four levels of price discounts (10, 30, 50, and 70%) was used. Jeans were selected as the product stimulus. Web pages were developed to create a fictional online store and to collect data. A total of 209 usable responses were collected by a research firm in the United States, and structural equation modeling was performed to analyze the data. The results showed that price discount affect played an important mediating role in the relationship between price discounts and consumers’ perceptions. When the direct effect of price discounts on perceived quality was examined, consumers perceived the apparel product with higher discounts as lower quality (i.e., a negative direct relationship). However, when price discount affect served as a mediator, the feelings created by a price discount led to a positive perception of product quality (i.e., a positive indirect relationship). By considering the influence of price discount affect, our model provides a better understanding of the effect of price discounts on consumers’ perceptions of apparel products.
Eects ofprice discount onconsumers
perceptions ofsavings, quality, andvalue
forapparel products: mediating eect ofprice
discount aect
Jung Eun Lee* and Jessie H. Chen‑Yu
Introduction
A price discount is a very prevalent marketing strategy to attract consumers by provid-
ing an extra value or incentive, which encourages consumers to purchase the promoted
products immediately (Yin and Huang 2014). In marketing research, theoretical models
have been developed to investigate the relationship between price and customers’ per-
ceptions of products, and two well-known models in the pricing literature are the price–
quality–value model (Monroe and Krishnan 1985) and the means-end model (Zeithaml
1988). According to these models, price increases both perceived quality and perceived
Abstract
Extending the price–quality–value model (Monroe and Krishnan in The perception of
merchandise and store quality 209–232, 1985) and means‑end model (Zeithaml in J
Mark 52:2–22, 1988), we developed a conceptual model to investigate the mediating
role of price discount affect (feeling aroused by price discounts) in the relationship
between price discounts and consumers’ perceptions (perceived savings, quality, and
value) and in the relationship between perceived value and purchase intentions in the
context of online apparel products. A between‑subject experimental design with four
levels of price discounts (10, 30, 50, and 70%) was used. Jeans were selected as the
product stimulus. Web pages were developed to create a fictional online store and to
collect data. A total of 209 usable responses were collected by a research firm in the
United States, and structural equation modeling was performed to analyze the data.
The results showed that price discount affect played an important mediating role in
the relationship between price discounts and consumers’ perceptions. When the direct
effect of price discounts on perceived quality was examined, consumers perceived the
apparel product with higher discounts as lower quality (i.e., a negative direct relation‑
ship). However, when price discount affect served as a mediator, the feelings created
by a price discount led to a positive perception of product quality (i.e., a positive
indirect relationship). By considering the influence of price discount affect, our model
provides a better understanding of the effect of price discounts on consumers’ percep‑
tions of apparel products.
Keywords: Apparel, Price discount, Quality, Affect
Open Access
© The Author(s) 2018. This article is distributed under the terms of the Creative Commons Attribution 4.0 International License
(http://creat iveco mmons .org/licen ses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium,
provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and
indicate if changes were made.
RESEARCH
Leeand Chen‑Yu Fash Text (2018) 5:13
https://doi.org/10.1186/s40691‑018‑0128‑2
*Correspondence:
eljung@vt.edu
Department of Apparel,
Housing, and Resource
Management, Virginia
Tech, 295 W. Campus Drive,
Blacksburg, VA 24061, USA
Page 2 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
sacrifice (the sacrifice of paying more), and the trade-off between perceived quality
and perceived sacrifice affects perceived value. When the price is high, consumers per-
ceive that the quality of the product is high. With respect to price discounts, according
to the price–quality–value model (Monroe and Krishnan 1985) and means-end model
(Zeithaml 1988), consumers should perceive that more highly discounted products are
of lower quality. However, researchers have found inconsistent results in the effects of
price discounts on perceived product or service quality. Huang etal. (2014) and Rungtra-
kulchai (2013) found a positive relationship—a high price discount led to a perception of
high product quality, Garretson and Clow (1999) found a negative relationship—a high
price discount led to a perception of low quality, and Grewal etal. (1998a) found no rela-
tionship between price discounts and product quality. A possible reason for these incon-
sistent results is that the price–quality–value model and means-end model consider only
the momentary effect of price, but price discounts have an affective effect that can create
positive feelings. Chandon etal. (2000) identified the hedonic benefits of price promo-
tions, including the value expression (self-perception of being smart or good shoppers),
exploration (stimulation to explore a variety of new products due to the price promo-
tion), and entertainment benefits (fun to use the price promotion).
e affective feeling, especially for apparel products, may have an important influ-
ence on consumers’ perceptions of the product and the shopping experience (Clore etal.
2001). Chandon etal. (2000) found that price promotions were more effective when the
benefits of the promotions were congruent with the type of products (i.e., hedonic vs.
utilitarian products). When they purchase hedonic products, consumers prefer price
promotions that come with the hedonic benefits to price promotions that come with
the utilitarian benefits. In other words, the affective effect of promotion is particularly
important for hedonic products. Unlike many other product categories, apparel prod-
ucts have a high hedonic value (Kim and Forsythe 2007; Kim and Hong 2011), which
refers to the sense of pleasure associated with the product (Kaul 2007). In addition to
the hedonic value of the product itself, consumers may also perceive a high hedonic
shopping value associated with the price discount that they received when they shop
for apparel (Jin etal. 2003). e affect created by price discounts (hereafter product dis-
count affect) may play an important role in consumers’ perceptions of apparel quality
and value.
Although price promotion is especially popular in the apparel industry because of a
short product life cycle, the study of price discount in apparel research remains a largely
unexplored area, and no study to date has used pricing models to examine the affec-
tive influences of price discounts. To fill this void, this study investigated (a) the direct
effects of price discount on consumers’ perceptions of savings, quality, and price dis-
count affect, (b) the direct effects of price discount affect on consumers’ perceptions of
savings, quality, and value, (c) the mediating role of price discount affect in the relation-
ships between price discounts and consumers’ perceptions of savings, quality, and value,
(d) the direct effects of perceived savings on perceived value and of perceived quality on
perceived value, and (e) the direct effect of perceived value on purchase intentions, par-
ticularly in online apparel shopping.
Page 3 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Literature review andhypothesis development
Price–quality–value model andmeans‑end model
e price–quality–value model proposed by Monroe and Krishnan (1985) and the
means-end model proposed by Zeithaml (1988) have been widely used to investigate
the relationship between price and customers’ perceptions of products. e price–qual-
ity–value model describes the relationships between price, perceived quality, sacrifice,
value, and willingness to buy. In the model, price is one of the external characteristics
of a product that customers perceive as a stimulus. Perceived sacrifice is a measure of
customers’ perceptions about paying a price. Monroe and Krishnan (1985) proposed
that consumers perceive price differently; some may perceive the objective price as high,
while others may perceive it as low. Consumers’ perceptions of product quality and
monetary sacrifice are derived from consumers’ perceptions of price. Consumers infer
that a higher price signals a higher quality, but at the same time, the higher price indi-
cates a greater monetary sacrifice in purchasing the product. Consequently, the trade-off
between perceived quality (i.e., gain) and perceived sacrifice (i.e., loss) results in per-
ceived value. Finally, customers base their purchase decisions on perceived value, and
their willingness to buy increases as their perception of value increases.
Consistent with the price–quality–value model (Monroe and Krishnan 1985), the
means-end chain model proposed by Zeithaml (1988) also describes the relationships
between price, perceived quality, and perceived value. Originally proposed by Gutman
(1982), a means-end chain is defined as one consisting of an interconnected set of cogni-
tive elements that allows people to select objects or activities that enable these people to
achieve their desired goals. is approach can help marketers understand the cognitive
structure of product information that consumers retain in their memory at several levels
of abstraction. Peter and Olson (1987) describe that a means-end chain is a conceptual
structure linking product attributes to functional and psychosocial consequences, and
then to personal perception of value. Zeithaml (1988) proposed a means-end model for
consumers’ perceptions of price, quality, and value, in which price is considered as an
extrinsic cue of product attribute and price promotion can be a cue that signals quality
change. is model supports that price promotion (an extrinsic cue of product attribute)
may influence consumers’ perception of product quality (perceptions of functional and
psychosocial consequences) and consumers’ perception of product quality is linked to
consumers’ perception of value. e means-end model shows that price influences per-
ceived monetary price; perceived monetary price influences perceived sacrifice and per-
ceived quality. en perceived sacrifice and perceived quality influence perceived value,
which in turn influences purchase intentions.
Researchers have applied the price–quality–value model (Monroe and Krishnan 1985)
and the means-end chain model (Zeithaml 1988) to explain the effect of price on cus-
tomers’ perceptions and confirmed the relationships proposed in these models (Dodds
etal. 1991; Palma etal. 2016; Rao and Monroe 1989; Suri and Monroe 2003). ese stud-
ies have consistently shown that there is a positive effect of price on consumers’ percep-
tions of quality. When the price is high, consumers perceive high product quality.
Page 4 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Eects ofprice discounts
Previous studies in marketing have shown that price discounts have both positive and
negative effects on customers’ evaluations and purchasing behavior (Darke and Dahl
2003; Dorzdenko and Jensen 2005; Kocas and Bohlmann 2008). Raghubir etal. (2004)
identified three routes of promotional effects: (a) economic, (b) informational, and (c)
affective. ey argued that the final effect of a price promotion on purchasing deci-
sion is a combination of positive and negative economic, informational, and affective
influences.
Economic eects ofprice discounts
Economic effects of price discounts are created by a monetary gain or non-mone-
tary (e.g., time and effort) gain or loss from a price promotion provided to customers
(Raghubir etal. 2004). A positive monetary effect of price promotion can be produced by
the face value of a coupon or the amount of a rebate. An example of a positive non-mon-
etary effect is that price promotion can help customers simplify the decision process and
reduce the transaction time or effort. However, there are potential negative economic
effects of price promotions. Customers may spend more time finding the best deal or
delay their purchase to wait for a promotional offer.
According to the economic effects of price discounts, a price discount provides a mon-
etary gain, an incentive to encourage consumers to purchase the product. Consumers
perceive a higher level of savings for a product when a higher price discount is provided,
and this relationship was confirmed by many previous studies. e perceived savings
concept has been used as the most common variable to measure the response to a price
promotion, according to Krishna etal. (2002) meta-analysis. For example, perceived sav-
ings have been used as significant responses to comparison cues of a price promotion
(i.e., the difference between an external reference price and the actual price; Berkowitz
and Walton 1980), price promotion messages (e.g., percentage terms vs. dollar terms;
Chen etal. 1998), and tensile price claims (e.g., save up to 50%; Biswas and Burton 1993;
Lee and Stoel 2016). In other words, perceived savings have been shown to be a useful
measure of customers’ perceptions of price promotions.
is proposition of a positive relationship between price discounts and perceived sav-
ings is consistent with the price–quality–value model and means-end model. In these
models, price is the amount that customers pay and is considered a sacrifice; thus, it is
related negatively to perceived savings. A price discount, on the other hand, is a reduc-
tion from the original price and is perceived as a gain (Monroe 2003; Munger and Gre-
wal 2001); therefore, it is related positively to perceived savings. Accordingly, Hypothesis
1 was proposed as below (see Fig.1):
Hypothesis 1 A price discount has a positive influence on perceived savings. Apparel
consumers’ perceived savings increase as the price discount increases.
Informational eects ofprice discounts
In addition to economic effects of price discounts, price discounts also have informa-
tional effects, which can be defined as the effects created by the communication of direct
or inferential knowledge derived from exposure to a price discount (Raghubir et al.
2004). A common informational route of promotion effect is quality inference. Raghubir
Page 5 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
etal. (2004) suggested a negative relationship between a price discount and perceived
quality. Customers tend to infer that a discounted product is low in quality, especially
when they receive an unexpectedly high price discount that other retailers typically do
not offer. However, previous studies showed inconsistent results on the relationship
between price discounts and perceived quality. Price discounts might increase perceived
quality (Huang etal. 2014), decrease perceived quality (Garretson and Clow 1999), or
have no effect on perceived quality (Grewal etal. 1998a).
According to Zeithaml (1988), when the product quality is difficult to evaluate at pur-
chase, consumers’ perceived quality depends more on extrinsic product attributes than
on intrinsic product attributes. Extrinsic product attributes are not physical parts of
the product, but product-related cues (e.g., price, brand, and level of advertising), while
intrinsic product attributes are physical properties of the product (e.g., color and tex-
tures). If consumers cannot predict the service quality before the service, such as dental
service (Garretson and Clow 1999), they would expect quality based on the price that
they pay. A high price discount signals to consumers that they may receive a low quality
service. On the other hand, if consumers can expect the product quality (for example, at
Starbucks, the same coffee is served to everyone all the time whether a price promotion
is used or not; Huang etal. 2014), they would be excited to receive a price promotion,
and a positive evaluation would result.
In the case of online apparel shopping, it is difficult for online shoppers to examine
the apparel quality at the time of purchase because fit and textures, which are impor-
tant criteria to evaluate apparel products, are not available. Consumers would be more
likely to use extrinsic cues (e.g., price discounts) rather than intrinsic cues (e.g., fit and
textures) to evaluate the quality of apparel products; price promotion would be a strong
cue to infer the apparel quality online. A high price discount may signal to online apparel
shoppers that the product is of low quality. is proposition is consistent with the price–
quality–value model and means-end model, in which price and perceived quality have
a positive relationship (Monroe 2003; Sweeney etal. 1999; Zeithaml 1988). As a reduc-
tion from the original price, a price discount is related negatively to perceived quality.
Accordingly, Hypothesis 2 was proposed:
Hypothesis 2 A price discount has a negative influence on perceived quality. Apparel
consumers’ perceived quality decreases as the price discount increases.
Price
Discounts
Price
Discount
Affect
Perceived
Savings
Perceived
Quality
Perceived
Value
Purchase
Intentions
Fig. 1 Research model
Page 6 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Aective eects ofprice discounts
Affect is a term frequently used in marketing research to indicate a general category of
feelings, including emotions and moods (Bagozzi etal. 1999). In particular, the affective
effects of price discounts are the feelings and emotions aroused by receiving or missing a
promotion (Raghubir etal. 2004). Price discount affect in the current study is specified as
the feelings aroused by a price discount. e affective route of promotion effects also can
be positive or negative. Examples of positive affective effects are consumers’ enjoyment
or excitement from searching for the best bargains (Cox etal. 2005), consumers’ feel-
ings that they are smart or lucky when they find a deal (Peine etal. 2009), or a sense of
accomplishment when consumers pay a reduced price (Mano and Elliott 1997). On the
other hand, consumers may feel regretful when they miss a deal or jealous when special
offers are available only for certain customers, such as new customers (Raghubir etal.
2004). Honea and Dahl (2005) and Peine etal. (2009) found that promotion increased
customers’ positive affect, such as happiness. Customers felt proud of themselves as
smart shoppers when they took advantage of an offer. Schindler (1998) also found that
price promotion could make customers feel excited and powerful. According to these
previous studies, a price discount is expected to increase consumers’ positive affect.
Hypothesis 3 A price discount has a positive influence on price discount affect. Apparel
consumers’ positive affective feelings increase as the price discount increases.
Aect andperceived savings
e affect-as-information model (Clore etal. 2001) indicates that affective feelings as
a component of input in information processing can provide information and serve as
crucial cues to guide judgment and decision making; therefore, affective feelings can
lead to a higher or lower evaluation of a certain object. No study has examined the effect
of affect on perceived savings, but some studies may have brought some lights about this
relationship. Hsu and Liu (1998) investigated the role of mood in price promotions and
found that the effect of price promotion (advertised selling price) on perceived trans-
action value (the evaluation of satisfaction obtained from taking advantage of the price
deal) was moderated by buyers’ mood states. When encountering price promotions,
buyers in a positive mood will perceive a greater transaction value than buyers in a nega-
tive mood, indicating that positive affect has a positive influence on consumers’ percep-
tion of price deal and therefore may positively influence perceived savings. Heussler etal.
(2009) examined the effect of affect on perceived price fairness and found that positive
emotions could compensate for the negative impact of price increases on perceived price
fairness, indicating that positive affect has a positive influence on consumers’ percep-
tions of price change and therefore may positively influence perceived savings. Accord-
ing to the affect-as-information model and above studies, consumers who have greater
positive affective feelings aroused by a price discount are expected to perceive a greater
amount of savings.
Hypothesis 4 Price discount affect has a positive influence on perceived sav-
ings. Apparel consumers’ perception of savings increases as the price discount affect
increases.
Page 7 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Aect andperceived quality
e affect-as-information model (Clore etal. 2001) can also support the effect of affec-
tive feelings on consumers’ perception of product quality. Consumers use affect as an
input in their information processing when they evaluate product quality. O’Neill and
Lamber (2001) found that price affect had a positive influence on price–quality infer-
ences. e participants who found greater enjoyment in the prices of athletic shoes
expressed a stronger belief that a higher price is an indication of a higher level of quality.
Chebat etal. (1995) examined the influence of affect on perception of service quality in
a bank and also found that the higher the level of pleasure, the higher the level of per-
ceived service quality in personnel’s empathy and assurance. Kempf (1999) investigated
the role of affect in the evaluation of hedonic product trials and found that affective
responses, such as pleasure and arousal, were significant antecedents of the participants’
evaluations of the trial experience. When these research results are applied to the con-
text of price discounts for apparel products, consumers who have greater positive affect
aroused by a price discount are expected to perceive higher product quality.
Hypothesis 5 Price discount affect has a positive influence on perceived quality.
Apparel consumers’ perception of product quality increases as the price discount affect
increases.
Aect andperceived value
Perceived value in general is the worth that a product has in the mind of the consumer.
Sweeney and Soutar (2001) investigated the constructs for value creation and showed
four factors for the perceived value: quality, emotional, price, and social value. e
authors considered quality and emotion as sub-dimensions of perceived value. However,
in the current study, the perceived value refers to only the price dimension of perceived
value because the majority of studies on pricing define value as the value for money and
use perceived value as a separate construct from perceived quality and emotion (e.g.,
Dumana and Mattilab 2005; Hsee and Rottenstreich 2004; Teas and Agarwal 2000). e
current study proposes that price discount affect has a positive influence on the price
dimension of perceived value identified by Sweeney and Soutar (2001).
In marketing research, the most frequently used theoretical models to investigate
the relationship between price and perceived value, such as the price–quality–value
model (Monroe and Krishnan 1985) and the means-end model (Zeithaml 1988), are
in a cognitive approach. However, Holbrook and Hirschman (1982) argued that most
human beings are intrinsically pleasure seeking. In many situations when consumers
make purchase decisions, they seek affective benefits, such as arousal, excitement, and
stimulation. In addition to the affect-as-information model (Clore etal. 2001), which
can support the effect of affect on perceived value, the affect heuristic also supports the
importance of affect in perceived value. e affect heuristic (Slovic etal. 2007) indicates
that emotion can be used as a mental shortcut that allows people to make decisions and
solve problems quickly and efficiently. In the context of price discounts, Aydinli etal.
(2014) found that price promotion lowered consumers’ motivation to use mental effort.
When a price promotion is offered, consumers are more likely to depend on affect than
on extensive information processing (recalling product information and spending time
considering choice options) to make a quicker and easier purchase decision.
Page 8 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Prior studies supported the effect of affect on perceived value (Dumana and Mattilab
2005; Hsee and Rottenstreich 2004). Dumana and Mattilab (2005) found that affective
factors (hedonics and pleasure) were strongly linked to cruise vacationers’ perceptions
of value. Hsee and Rottenstreich (2004) found that when people relied on feeling to eval-
uate value, they were sensitive to the presence or absence of a stimulus (e.g., price dis-
count), but were insensitive to further variations of scope (e.g., number of products in a
set). e participants who were encouraged to evaluate value by feeling were willing to
pay more for a 5-CD set than those who were encouraged to evaluate value by calcula-
tion. However, for a 10-CD set, the participants who were encouraged to evaluate value
by feeling were insensitive to the number of CDs available in the set and were willing
to pay less than those who were encouraged to evaluate value by calculation, support-
ing that feeling plays an important role in perceived value. erefore, according to the
affect-as-information model (Clore etal. 2001), the affect heuristic (Slovic etal. 2007),
and prior studies (Aydinli etal. 2014; Dumana and Mattilab 2005; Hsee and Rottenstre-
ich 2004), apparel consumers who have a greater positive affect aroused by the price dis-
count are expected to perceive the value for money to be higher.
Hypothesis 6 Price discount affect has a positive influence on perceived value. Apparel
consumers’ perception of value increases as the price discount affect increases.
Mediating eect ofprice discount aect
From Hypothesis 3 to Hypothesis 6, the relationships between price discounts and
price discount affect (H3), price discount affect and perceived savings (H4), price dis-
count affect and perceived quality (H5), and price discount affect and perceived value
(H6) were examined. Here Hypothesis 7 was proposed to examine the mediating effect
of price discount affect on the relationships between price discount and three cognitive
evaluations (i.e., perceived savings, perceived quality, and perceived value).
Previous studies showed that consumers’ affect induced by an external stimulus influ-
ences cognitive evaluation (Isen et al. 1978; Obermiller and Bitner 1984; O’Neill and
Lamber 2001). Under conditions with limited information, such as online shopping,
affective responses are more likely to influence consumers’ judgments than cognitive
responses (Shiv and Fedorikhin 1999; Zeithaml 1988). Consumers would react first with
affective responses as a lower order reaction than a cognitive reaction, and then their
cognitive reaction would be influenced by their affective responses (Campbell 2007;
Shiv and Fedorikhin 1999; Zeithaml 1988). Furthermore, Zeithaml (1988) argued that
perceived quality has two forms—affective quality and cognitive quality. Affective qual-
ity is more related to nondurable products and experience goods, while cognitive qual-
ity, which needs a higher level of cognitive judgment, is more associated with durable
and searching goods. Because apparel is a nondurable and experience good, consumers
would be more likely to evaluate the product quality according to their affective status;
the affect would influence their cognitive evaluations.
According to these previous studies, in the online apparel shopping context of the cur-
rent study, price discounts are expected to increase positive affect, and the increase in
positive affect increases positive cognitive evaluations (i.e., perceived savings, perceived
quality, and perceived value). erefore, price discount affect was proposed as a media-
tor (a) between price discounts and perceived savings, (b) between price discounts and
Page 9 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
perceived quality, and (c) between price discounts and perceived product value. Accord-
ingly, Hypothesis 7 was proposed as follows:
Hypothesis 7 Affect mediates the effect of price discounts on (a) perceived savings, (b)
perceived product quality, and (c) perceived product value. A price discount increases
apparel consumers’ positive affect, and this increase in positive affect in turn increases
consumers’ (a) perceived savings, (b) perceived quality, and (c) perceived value.
Perceived savings andperceived value
e price–quality–value model and means-end model propose that the trade-off
between perceived quality and perceived sacrifice (the perception of paying the cost)
results in perceived value (Monroe and Krishnan 1985). Accordingly, perceived sacrifice
and perceived value have a negative relationship, and perceived savings and perceived
value have a positive relationship. e findings of previous studies have supported these
relationships. Grewal etal. (1998b) and Teas and Agarwal (2000) found that a higher
level of perceived sacrifice led to a lower level of perceived value. Choi etal. (2010)
examined a price discount and a “Scratch and Save” type of price promotions and found
that the expected savings positively influenced perceived value, supporting that per-
ceived savings enhanced consumers’ perceptions of value.
Hypothesis 8 Perceived savings have a positive influence on perceived value. Apparel
consumers’ perception of value increases as perceived savings increase.
Perceived quality andperceived value
e price–quality–value model (Monroe and Krishnan 1985) and means-end model
(Zeithaml 1988) propose that perceived quality can directly influence perceived value.
e findings of previous studies have supported the positive relationship between per-
ceived quality and perceived value. For example, Teas and Agarwal (2000) found that
the relationship between price and perceived value is mediated by perceived quality. e
perceived quality directly influences the value perceived by consumers. Grewal etal.
(1998b) also found a positive relationship between buyers’ perceived quality and per-
ceived value. According to the price–quality–value model, the means-end model, and
these previous studies, the following hypothesis was proposed:
Hypothesis 9 Perceived quality has a positive influence on perceived value. Apparel
consumers’ perception of value increases as perceived quality increases.
Perceived value andpurchase intentions
e price–quality–value model (Monroe 2003) and means-end model (Zeithaml 1988)
support the positive relationship between perceived value and purchase intentions, and
previous studies have also shown evidence supporting this relationship (Kwon etal. 2007;
Yang and Peterson 2004). Yang and Peterson (2004) studied online shopping behaviors
and found a positive effect of perceived value on online shoppers’ loyalty. Kwon etal.
(2007) examined the mediating role of perceived value in the relationship between team
identification and purchase intention of team-licensed apparel. ey found that team
identification alone did not lead to purchase intentions; perceived value fully meditated
this relationship, supporting the importance of the influence of perceived value on pur-
chase intentions. Accordingly, the following hypothesis was proposed:
Page 10 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Hypothesis 10 Perceived value has a positive influence on purchase intentions. Apparel
consumers’ purchase intentions increase as perceived value increases.
Methods
A between-subjects experimental design was used to investigate the proposed model
and test the hypotheses. e price discounts were manipulated at four levels: 10, 30, 50,
and 70%. Jeans were selected as the product stimulus, web pages were developed to cre-
ate a fictional online store, and an online survey was used for data collection.
Stimulus selection anddevelopment
Product selection
Jeans were selected as the product stimulus because people of all genders, ages, and
social classes wear jeans (Miller 2013). Consumers in the United States are familiar with
this product and have experience wearing and purchasing them. According to Fore-
man (2015), the average annual denim consumption is four pairs of jeans per person in
the United States. A preliminary survey was conducted to select a pair of jeans with a
basic style for the study. ree styles of jeans (straight, wide, and skinny) without any
extra design, embroidery, or logo were selected for male and female, resulting in a total
of six pairs of jeans. e colors of the jeans were made similar with Adobe Photoshop
adjustments.
Amazon Mechanical Turk (MTurk) was used to distribute the survey and collect the
data. ree styles of female or male jeans were shown to each participant. e images
of the three styles of jeans appeared in a random order for each participant to reduce
the order effects. en each participant was instructed to assess the likeability of each
style of jeans on a 7-point Likert scale (bad–good, unpleasant–pleasant, unlikable–lika-
ble, unflattering–flattering, unattractive–attractive, and not stylish–stylish; Cox and Cox
2002). A total of 50 usable responses were collected.
Since consumers’ decisions of apparel purchasing primarily rely on aesthetics, such as
clothing style (Dutton and Istook 2006; Eckman etal. 1990), without positive percep-
tions of clothing style, consumers are less likely to purchase the product, and price may
have little or no impact on their purchase behavior. In addition, different jeans images
were provided for male and female due to gender differences. For these reasons, two
criteria were applied to select the style of jeans: (a) a style that had a positive rating in
likability (an average rating of 4 or higher on a 7-point Likert scale) and (b) a style that
was not significantly different in likability across genders. e results showed that only
the straight style jeans received ratings above 4 for both male and female jeans (Male:
Mstraight=5.03, Mwide=2.91, and Mskinny=3.21; Female: Mstraight=5.04, Mwide=2.77,
and Mskinny=4.90). e results of a t test showed that there was no significant difference
in likability between the male and female straight jeans (p=.99). According to these
results, the straight jeans were selected for the study.
Original retail price
Five American jeans brands (i.e., Levi’s, Wrangler, Calvin Klein Jeans, 7 For All Mankind,
and Guess) were selected to set the original retail price of the jeans. ese five brands are
especially popular in the United States for both men and women, according to the “Top
Page 11 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
10 Best Selling Jeans Brands 2016–2017” (Aslam 2017). e retail prices of the basic
straight jeans of these five brands were averaged, and the average price of $68 was set as
the original price of the jeans in the study.
Web page development
Web pages were developed to create a fictional online store and used for the data collec-
tion. On the first web page, the purpose of the study and the confidentiality disclosure
information were provided for the participants to decide whether they would participate
in the survey. On the second web page, an experimental scenario was provided, and the
participants were directed to role play that (a) they were considering buying a new pair
of jeans, (b) they found a website that was selling jeans, and (c) a certain pair of jeans
on the website was on sale. e third webpage showed images and information about
a fictional online store, including an image of the pair of jeans on sale, a description of
the jeans on sale, a size list, one of the randomly assigned price discounts (10, 30, 50, or
70%), the original retail price ($68.00), the selling price after the 10, 30, 50, or 70% dis-
count ($61.20, $47.60, $34.00, or $20.40), and fictitious brand and retailer names, which
were used to avoid any confounding effects. Beneath the images and information on the
web page, an instruction was given to ask the participants to read the information, view
the image carefully, and then answer the questions.
Measures
A questionnaire was developed to measure the dependent variables (i.e., perceived sav-
ings, perceived quality, perceived value, affect, and purchase intentions). All the meas-
ures are shown in Table1. ese measures were selected because they are commonly
used in pricing studies, and the reliability of the scales has been well established. Per-
ceived savings were measured by three items from Biswas and Burton (1993), perceived
quality was measured by four items from Sweeney etal. (1999), and perceived value was
measured by three items from Urbany etal. (1988). Price discount affect was measured
by six semantic differential measures on a 7-point bipolar response scale (Mehrabian
and Russell 1974), a scale that has been widely used by numerous scholars for several
decades. Purchase intentions were measured by three items from Sweeney etal. (1999).
All questions were modified to fit the purpose of the study, and all items, except the
items for price discount affect, were measured on a 7-point Likert scale.
Data collection
Participants were recruited by a research firm in the United States, and an online survey
was used for the data collection. To control the variance attributable to gender, the num-
bers of male and female participants were kept the same at each price discount level.
With this gender distribution in mind, we assigned the participants randomly to one of
the four levels of product discount and asked them about their perceived savings, per-
ceived quality, perceived value, price discount affect, and purchase intentions based on
the price discount assigned. A total of 209 usable responses were collected. e sample
size was determined by power analysis for structural equation modeling (MacCallum
etal. 1996). With over 100 degrees of freedom, the minimum sample size was 132 to
Page 12 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
achieve a power of .80. us, 200 responses were set as the target sample size, and 209
responses were received.
Results
Participants
e participants ranged in age from 18 to 54, and the largest age group was 25–34
(39.7%). Self-identified genders were 48.3% males and 49.3% females. Most participants
were Caucasian (74.6%), followed by Asian or Pacific Islander (11.5%), and African
American or Black (6.7%). Half of the participants were married (50.7%), while nearly
one-third was single (31.6%). e majority of the participants had a college degree
(43.5%; see Table2).
Table 1 Measure items andconrmatory factor analysis results
The values of CR, AVE, and Cronbach’s alpha shown in the table were calculated after the three items were removed
CR, composite reliability; AVE, average variance extracted
a These three items were removed because the factor loadings were smaller than .50
Factor/item Factor loading CR AVE Cronbach’s
alpha
Perceived savings .94 .85 .93
The amount of discount offered on the pair of jeans represents large
savings .91
The amount of money that customers would save on the pair of
jeans is very large .93
The amount of discount stated for the pair of jeans is very high .93
Perceived quality .92 .73 .92
This pair of jeans would be reliable .86
This pair of jeans would be dependable .86
This pair of jeans would be durable .89
The workmanship on this pair of jeans would be good .81
Perceived value .93 .87 .93
This pair of jeans is a good value for the money .94
This pair of jeans is a good buy .93
At the price shown, this pair of jeans is economicala.49
Price discount affect .92 .73 .91
How do you feel after seeing this price discount?
Happy–unhappy .92
Pleased–annoyed .93
Content–melancholic .77
Excited–calm .79
Aroused–unarouseda.49
Stimulated–relaxeda.48
Purchase intentions .96 .90 .96
I would consider buying this pair of jeans with this price discount .93
There is a strong likelihood that I would buy this pair of jeans with
this price discount .95
I would purchase this pair of jeans with this price discount .96
Page 13 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Validity andreliability check
e measurement model was assessed by using confirmatory factor analysis (CFA), and
the results are shown in Table1. e exogenous variable was price discounts and the
endogenous latent constructs were perceived savings, perceived quality, perceived value,
price discount affect, and purchase intentions. Two items in price discount affect and
one item in perceived value were removed because the standardized factor loadings were
less than .5 (Hair etal. 2010). According to the fit criteria suggested by Hair etal. (2010)
and Hu and Bentler (1999), the Chi squared/degrees of freedom ratio should be2, CFI
and NFI.95, GFI and AGFI.90, and RMSEA.06 to indicate a good fit of the data.
e goodness-of-fit statistics obtained indicated that the measurement model fit the
data well: χ2/df=1.96, CFI=.98, NFI=.96, GFI=.92, AGFI=.90, and RMSEA=.06.
e convergent validity of the measures in the study was supported by three evalua-
tions: (a) all factor loadings were between .77 and .96, greater than the recommended
minimum value of .50 (Table1), (b) the average variance extracted (AVE) for each con-
struct ranged from .73 to .90, greater than the recommended minimum value of .50, and
Table 2 Demographic characteristics
a Total number of participants was 209; number of missing responses was 5
Demographic Categories Frequency
(N=204a)Percent
Age 18–24 30 14.7
25–34 81 39.7
35–44 64 31.4
45–54 29 14.2
Gender Male 101 48.3
Female 103 49.3
Ethnic background African American or Black 14 6.7
Caucasian or White 158 74.6
Hispanic, Latino or Spanish Origin 8 3.8
American Indian or Alaska Native 1 .5
Asian or Pacific Islander 24 11.5
Others 1 .5
Marital status Single 68 31.6
Divorced 12 5.7
Married 106 50.7
Cohabitation 20 9.6
Education High School or Equivalent 4 1.9
Vocational/Technical School (2 year) 11 5.3
Some College 68 32.5
College Graduate (4 year) 91 43.5
Master’s Degree (MS) 22 10.5
Doctoral Degree (Ph.D.) 2 1.0
Professional Degree (MD, JD, etc.) 6 2.9
Discretionary budget < $100 32 15.3
$100–249 55 26.3
$250–499 50 23.9
$500–749 26 12.4
$750–999 19 9.1
> $1000 22 10.5
Page 14 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
(c) the composite reliability (CR) for each construct ranged from .92 to .96, exceeding
the recommended minimum value of .70. e square root of the AVE was larger than
the corresponding correlation coefficient between the factors, confirming discriminant
validity (see Table3). All minimum values were based on the recommendations of Hair
etal. (2010).
Structural equation modeling andhypothesis testing
Structural equation modeling was conducted with maximum likelihood extraction to
test the proposed hypotheses, and the results are shown in Fig.2. e goodness of fit sta-
tistics were χ2/df=1.59, CFI=.98, NFI=.95, GFI=.91, AGFI=.90, and RMSEA=.05,
indicating that the proposed model fit the data well (Hu and Bentler 1999). e price
discounts explained 29.4% of the variance in affect (R2=.29), while the price discounts
Table 3 Discriminant validity ofmeasurement model
a Square root of the AVE value for each construct
Perceived
savings Perceived
quality Price discount
aect Perceived
value Purchase
intentions
Perceived savings .92a
Perceived quality .24 .85a
Price discount affect .80 .40 .86a
Perceived value .72 .60 .75 .93a
Purchase intentions .60 .64 .67 .90 .95a
Price
Discounts
PS2 PS3PS1
Perceived
Savings
R2 =.75
PQ2PQ3PQ1PQ4
Perceived
Quality
R2 =.19
PV2PV1
Perceived
Value
R2 =.71
PI2PI3PI1
Purchase
Intentions
R2 =.85
.54***
-.24**
.44***
.51***
.55***
.46***
.42***
.92***
.19*
AF2 AF4
AF1AF3
e1 e2 e3 e4
e8 e9 e10e11
e14 e15e16
e12e13
e5 e6 e7
e17
e18
e19
e20
e21
Price Discount
Affect
R2 =.29
Fig. 2 Structural model and hypothesis testing results. All path coefficients are standardized estimates;
*p .05, **p .01, ***p .001
Page 15 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
and price discount affect explained 74.9% of the variance in perceived savings and 18.7%
of the variance in perceived quality. Perceived savings, perceived quality, and price dis-
count affect explained 70.9% of the variance in perceived value. Furthermore, perceived
value explained 84.8% of the variance in purchase intentions.
ese results supported all the hypotheses proposed. Price discounts had a positive
influence on perceived savings (H1: β=.44, t=8.47, p<.001), a negative influence on
perceived quality (H2: β=.24, t=2.87, p<.01), and a positive influence on price
discount affect (H3: β=.54, t=8.62, p<.001). Price discount affect had a positive influ-
ence on perceived savings (H4: β=.55, t=9.87, p<.001), a positive influence on per-
ceived quality (H5: β=.51, t=5.82, p<.001), and a positive influence on perceived
value (H6: β=.19, t=2.20, p<.05).
e mediating effect of affect was analyzed by using the bootstrapping method (see
Table4). ere were significant indirect effects of price discounts on perceived savings
(H7a: β=.30, p<.01) and on perceived quality (H7b: β=.28, p<.01) through price
discount affect. ere was a significant indirect effect of price discounts on perceived
value through (a) perceived savings, (b) perceived quality, and (c) price discount affect
(β=.47, p<.01). To identify whether there was a significant indirect effect of price dis-
counts on perceived value through price discount affect alone, the standardized coeffi-
cient was calculated according to Shrout and Bolger (2002). e standardized coefficient
of the direct effect of price discounts on price discount affect (.54) was multiplied by the
standardized coefficient of the direct effect of price discount affect on perceived value
(.19), and the result was .54×.19=.10 (p=.05), indicating a significant indirect effect
(H7c). Significant total effects were found in all the paths, except the total effect of price
discounts on perceived quality.
As proposed in H8 and H9, perceived value was affected positively by perceived sav-
ings (H8: β=.46, t=5.49, p<.001) and perceived quality (H9: β=.42, t=7.66, p<.001;
see Fig.2). Lastly, perceived value had a positive influence on purchase intentions (H10:
β=.92, t=19.24, p<.001).
Table 4 Standardized coecients ofdirect, indirect, andtotal eects
*p.05, **p.01
Direct eects
estimate Indirect eects
estimate Total
eects
estimate
Price discounts perceived savings .44** .30** .73**
Price discounts perceived quality .24** .28** .04
Price discounts affect .54** .00 .54**
Price discounts perceived value .00 .49** .49**
Affect perceived savings .55** .00 .55**
Affect perceived quality .51** .00 .51**
Affect perceived value .19* .47** .67**
Perceived savings perceived value .46** .00 .46**
Perceived quality perceived value .42** .00 .42**
Perceived value purchase intentions .92** .00 .92**
Page 16 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Discussion
Consistent with the price–quality–value model (Monroe and Krishnan 1985) and
means-end model (Zeithaml 1988), the results indicated that as price discounts
increased, consumers perceived larger monetary savings, but lower product quality.
Furthermore, consistent with previous studies (Honea and Dahl 2005; Schindler 1998),
positive affect increased as price discounts increased; price discounts apparently cause
consumers to have positive feelings, such as happiness, pleasure, contentment, and
excitement.
A unique finding of this study was that the direct effect of price discounts on affect
was stronger than that on perceived savings or on perceived quality. A comparison of
the three types of price promotion effects identified by Raghubir etal. (2004) indicated
that the affective effect of price discounts (i.e., the effect of price discounts on affect) is
stronger than economic effect (i.e., the effect of price discounts on perceived savings) or
informational effect (i.e., the effect of price discounts on perceived quality), particularly
in the context of an online apparel product. Consumers perceived high hedonic value
not only in the apparel products themselves (Kim and Forsythe 2007; Kim and Hong
2011), but also in the price discount they received. In addition, due to the limited infor-
mation on online shopping, consumers rely more on affective reaction than on cognitive
evaluations in the formation of their perceptions (Zeithaml 1988). ese results indicate
that price discounts play an important role in creating an affective shopping experience
for online apparel shoppers.
In addition to a strong direct relationship between price discounts and price discount
affect, the results also showed a significant mediating effect of price discount affect on
the relationship between price discounts and perceived quality. When the direct effect of
price discounts on perceived quality was examined, the results showed a negative rela-
tionship; i.e., consumers perceived that highly discounted products were of low qual-
ity. However, when price discount affect served as a mediator, the indirect relationship
between price discounts and perceived quality became positive; i.e., the affect created
by a price discount led to a positive perception of product quality. According to Lee and
Tsai (2014), when consumers use their emotions rather than cognition to evaluate prod-
ucts or make purchase decisions, they pay less attention to the details and nuance, but
focus instead on their affective experience, probably because affect can change the effect
of price discounts on perceived quality from negative to positive. ese results support
the affect-cognition model in that the affect triggered by a particular stimulus influences
consumers’ cognitive responses.
Lastly, the findings from this study revealed that apparel consumers who perceived a
high level of savings and product quality were likely to perceive that the product had a
high value. e perception of high value in turn led to a high level of purchase inten-
tions. ese findings confirmed the price–quality–value model (Monroe and Krishnan
1985) and means-end model (Zeithaml 1988), suggesting that perceived savings and
perceived quality are predictors of perceived value. Furthermore, this study showed that
perceived value alone explained 85% of the variance in purchase intentions, indicating
that perceived value is a strong predictor of purchase intentions.
Page 17 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Conclusion
Academic contributions
e purpose of the study was to investigate the mediating effects of price discount affect
on the relationships between price discounts and customers’ perceptions (i.e., perceived
savings, quality, and value) and the effect of perceived value on purchase intentions in an
apparel online shopping context. To achieve this objective, we developed a conceptual
model by extending the price–quality–value model (Monroe and Krishnan 1985) and
means-end model (Zeithaml 1988) and integrating the concepts of the three promotion
effects (economic, informational, and affective effects; Raghubir etal. 2004) and the con-
cept of the affect-cognition model. By considering the influences of price discount affect,
the proposed model provides a better understanding of the effects of price discounts on
apparel consumers’ perceptions of savings, quality, and value and contributes to the cur-
rent price discount literature.
e most intriguing result in this study was that the direct and indirect influences of
price discounts on perceived apparel quality were both significant, but opposite in direc-
tion, resulting in an insignificant total effect. e results of the negative direct effect of
price discounts on perceived quality may explain why some previous researchers have
found a negative effect of price discounts on perceived quality (Garretson and Clow
1999), while the results of the positive indirect effect of price discounts on perceived
quality may explain why some other researchers have found a positive effect (Huang
etal. 2014; Rungtrakulchai 2013). In addition, the total effect of price discounts on per-
ceived quality was not significant in this study because the opposite direct and indirect
effects cancelled each other out. e phenomenon that direct and indirect effects are in
opposite directions is referred to as competitive mediation (Shrout and Bolger 2002).
ese results may explain why a previous study (Grewal etal. 1998a) found that price
discounts had no significant influence on perceived quality.
By demonstrating the important mediating role of affect in the effect of price discounts
on cognitive perceptions, this study contributes to the understanding of the relationships
between affect and cognitions in the formation of consumers’ perceptions, particularly
focusing on online apparel shopping. ere has been no consensus on whether cogni-
tion influences affect or affect influences cognition (Campbell 2007; Chebat and Michon
2003; Peine etal. 2009; Shiv and Fedorikhin 1999). As we found that the affective effect
of price discounts is greater than cognitive effects (economic and informational effects),
the current research confirmed that the affect-cognition model is more appropriate
than the cognition-affect model to explain price discount effects in the context of online
apparel shopping. Our results suggest that due to the limited information provided in
online shopping and the hedonic nature of apparel products, consumers process cogni-
tive perceptions according to affective status, which is a spontaneous manner from price
discounts.
Managerial implications
In addition to extending the body of literature on price promotion and the understand-
ing of the influences of price discounts on consumers’ perceptions of apparel products,
the results of this study also provide research-based information for several manage-
rial implications. Although offering a high price discount can increase consumers’
Page 18 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
perceptions of savings, it also has a negative effect on consumers’ perceptions of apparel
quality. Apparel retailers need to keep in mind that price promotions are a double-edged
sword: they create both positive and negative influences on consumers’ perceptions.
Our findings showed that in addition to the consideration of perceived savings and
apparel quality—two important elements in consumers’ cognitive processes in pur-
chase decision making, the consideration of the role of affective feelings created by price
promotion is also important. e enjoyment that consumers experience from a price
discount can increase their perception of value directly and also compensate for the neg-
ative effect of a price discount on perceived quality. erefore, when developing pricing
and promotion strategies for online apparel shopping, retailers should make efforts to
create pleasant affective experiences rather than focus on only monetary savings. Instead
of simply stating the percentage of the price discount, retailers can find peripheral ways
to present the price discount to increase consumers’ pleasure. For instance, Naylor etal.
(2006) found that the participants responded significantly faster when a promotion (e.g.,
a 10% discount) was associated with pleasant words (e.g., joy, delight) than with neutral
words. Price discounts for special occasions, such as customers’ birthdays or wedding
anniversaries, or limited-time price discounts (i.e., flash sales) may be effective ways to
create positive affective responses when consumers shop for hedonic products such as
apparel.
Limitations andfuture research
Even though the study was designed and conducted carefully to ensure the validity of the
findings, the results from this study should be interpreted with respect to its limitations.
Although a national sample was recruited through a research firm, caution needs to be
used in generalizing the results to the entire population of the United States. Because
rewards (e.g., gift cards, merchandise) were provided to recruit the participants and all
the participants were internet users, the disparity between the distribution of the general
population and that of the participants needs to be taken into consideration.
To reduce the influences of extraneous variables that can affect internal validity, we
developed a fictional online store in the study for data collection. Although we made
efforts to simulate real world situations as closely as possible, consumer behaviors under
experimentally controlled conditions may differ from behaviors in actual retailing set-
tings. Future studies may use other research methods, such as using actual retail web-
sites in a survey design or a case study to increase the external validity and verify the
current findings. In addition, consumers’ online and offline shopping behaviors may dif-
fer. In the current study, the negative informative effect of price discounts on percep-
tions of apparel quality might be especially strong because this study was carried out in
an online apparel shopping context; consumers could not physically examine the prod-
ucts at purchase. In an uncertain situation, consumers may use price discounts as a sig-
nal to evaluate apparel quality. Further studies are needed to compare the effects of price
discounts on consumer perceptions between online and offline apparel shopping.
We used jeans, a casual apparel item, as the product stimulus in this study because
consumers in various segments are familiar with the product. However, each apparel
product has its own characteristics, and consumers’ responses to price discounts may
vary when consumers shop for different types of apparel products. In future studies,
Page 19 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
researchers may examine different types of apparel items, such as dresses or suits, or
products offered to different market categories, such as luxury or fast fashion products,
to determine whether product type influences the effect of price discounts.
Authors’ contributions
JEL and JHC carried out the online price discount studies, participated in the sequence alignment and drafted the manu‑
script. Both authors read and approved the final manuscript.
Competing interests
The authors declare that they have no competing interests.
Ethics approval and consent to participate
Not applicable.
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Received: 14 July 2017 Accepted: 6 February 2018
References
Aslam, H, (2017). Top 10 best selling jeans brands 2016–2017. Retrieved from http://www.stron gesti nworl d.com/best‑selli
ng‑jeans ‑brand s/.
Aydinli, A., Bertini, M., & Lambrecht, A. (2014). Price promotion for emotional impact. Journal of Marketing, 78(4), 80–96.
Bagozzi, R. P., Gopinath, M., & Nyer, P. U. (1999). The role of emotions in marketing. Journal of the Academy of Marketing
Science, 27(2), 184–206.
Berkowitz, E. N., & Walton, J. R. (1980). Contextual influences on consumer price responses: An experimental analysis.
Journal of Marketing Research, 17, 349–358.
Biswas, A., & Burton, S. (1993). Consumer perceptions of tensile price claims in advertisements: An assessment of claim
types across different discount levels. Journal of the Academy of Marketing Science, 21(3), 217–229.
Campbell, M. (2007). “Says who?!” How the source of price information and affect influence perceived price (un)fairness.
Journal of Marketing Research, 44(2), 261–271.
Chandon, P., Wansink, B., & Laurent, G. (2000). A benefit congruency framework of sales promotion effectiveness. Journal
of Marketing, 64(4), 65–81.
Chebat, J., Filiatrault, P., & Gdlinas‑Chebat, C. (1995). Impact of waiting attribution and consumer’s mood on perceived
quality. Journal of Business Research, 34, 191–196.
Chebat, J.‑C., & Michon, R. (2003). Impact of ambient odors on mall shoppers’ emotions, cognition, and spending: A test
of competitive causal theories. Journal of Marketing, 56, 529–539.
Chen, S.‑F. S., Monroe, K. B., & Lou, Y.‑C. (1998). The effects of framing price promotion messages on consumers’ percep‑
tions and purchase intentions. Journal of Retailing, 74(3), 353–372.
Choi, S., Stanyer, M., & Kim, M. (2010). Consumer responses to the depth and minimum claimed savings of “Scratch and
Save (SAS)” promotions. Psychology & Marketing, 27(8), 766–779.
Clore, G. L., Gasper, K., & Garvin, E. (2001). Affect as information. In J. P. Forgas (Ed.), Handbook of affect and social cognition
(pp. 121–144). Mahwah: Lawrence Erlbaum Associates Inc.
Cox, D., & Cox, A. D. (2002). Beyond first impressions: The effects of repeated exposure on consumer liking of visually
complex and simple product designs. Journal of the Academy of Marketing Science, 30(2), 119–130.
Cox, A. D., Cox, D., & Anderson, R. D. (2005). Reassessing the pleasures of store shopping. Journal of Business Research,
58(3), 250–259.
Darke, P. R., & Dahl, D. W. (2003). Fairness and the subjective value of a bargain. Journal of Consumer Psychology, 13,
328–338.
Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers’ product evalua‑
tions. Journal of Marketing Research, 28, 307–319.
Dorzdenko, R., & Jensen, M. (2005). Risk and maximum acceptable discount levels. Journal of Product and Brand Manage-
ment, 14(4), 264–270.
Dumana, T., & Mattilab, A. S. (2005). The role of affective factors on perceived cruise vacation value. Tourism Management,
26, 311–323.
Dutton, K. C., & Istook, C. (2006). Young adults’ intent to purchase based on garment attriutes. Proceedings of International
Textiles and Apparel Association, Consumer Behavior, 63, 54–56.
Eckman, M., Damhorst, M. L., & Kadolph, S. J. (1990). Toward a model of the in‑store purchase decision process: Consumer
use of criteria for evaluating women’s apparel. Clothing and Textiles Research Journal, 8(2), 13–22.
Foreman, K. (2015). Jean genie: The denim evaluation. BBC News. Retrieved from http://www.bbc.com/cultu re/story
/20150 401‑jean‑genie ‑the‑denim ‑evolu tion.
Garretson, J. A., & Clow, K. E. (1999). The influence of coupon face value on service quality expectations, risk perceptions
and purchase intentions in the dental industry. Journal of Services Marketing, 13(1), 59–72.
Grewal, D., Krishnan, R., Baker, J., & Borin, N. (1998a). The effect of store name, brand name and price discounts on con‑
sumers’ evaluations and purchase intentions. Journal of Retailing, 74(3), 331–352.
Page 20 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Grewal, D., Monroe, K. B., & Krishnan, R. (1998b). The effects of price‑comparison advertising on buyers’ perceptions of
acquisition value, transaction value and behavioral intentions. Journal of Marketing, 62(2), 46–59.
Gutman, J. (1982). A means‑end chain model based on consumer categorization processes. Journal of Marketing, 46,
60–72.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis (7th ed.). Upper Saddle
River: Pearson‑Prentice Hall.
Heussler, T., Huber, F., Meyer, F., Vollhardt, K., & Ahlert, D. (2009). Moderating effects of emotion on the perceived fairness
of price increases. Advances in Consumer Research, 36, 332–338.
Holbrook, M. B., & Hirschman, E. C. (1982). The experiential aspects of consumption: Consumer fantasies, feelings, and fun.
Journal of Consumer Research, 9, 132–140.
Honea, H., & Dahl, D. W. (2005). The promotion affect scale: Defining the affective dimensions of promotion. Journal of
Business Research, 58, 543–551.
Hsee, C. K., & Rottenstreich, Y. (2004). Music, pandas, and muggers: On the affective psychology of value. Journal of Experi-
mental Psychology, 133(1), 23–30.
Hsu, C., & Liu, B. S. (1998). The role of mood in price promotions. Journal of Product & Brand Management, 7(2), 150–160.
Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus
new alternatives. Structural Equation Modeling: a Multidisciplinary Journal, 6(1), 1–55.
Huang, H. C., Chang, Y. T., Yeh, C. Y., & Liao, C. W. (2014). Promote the price promotion: The effects of price promotions on
customer evaluations in coffee chain stores. International Journal of Contemporary Hospitality Management, 26(7),
1065–1082.
Isen, A. M., Shalker, T. E., Clark, M., & Karp, L. (1978). Affect, accessibility of material in memory, and behavior: A cognitive
loop? Journal of Personality and Social Psychology, 36, 1–12.
Jin, B., Sternquist, B., & Koh, A. (2003). Price as hedonic shopping. Family and Consumer Sciences Research Journal, 31(4),
378–402.
Kaul, S. (2007). Hedonism and culture: Impact on shopping behaviour a research agenda. Vikalpa, 32(3), 81–89.
Kempf, D. S. (1999). Attitude formation from product trial: Distinct roles of cognition and affect for hedonic and func‑
tional products. Psychology & Marketing, 16(1), 35–50.
Kim, J., & Forsythe, S. (2007). Hedonic usage of product virtualization technologies in online apparel shopping. Interna-
tional Journal of Retail & Distribution Management, 35(6), 502–514.
Kim, H., & Hong, H. (2011). Fashion leadership and hedonic shopping motivations of female consumers. Clothing and
Textiles Research Journal, 29(4), 314–330.
Kocas, C., & Bohlmann, J. D. (2008). Segmented switcher and retailer pricing strategies. Journal of Marketing, 72(3),
124–142.
Krishna, A., Briesch, R., Lehmann, D. R., & Yuan, H. (2002). A meta‑analysis of the impact of price presentation on perceived
savings. Journal of Retailing, 78(2), 101–118.
Kwon, H. H., Trail, G., & James, J. D. (2007). The mediating role of perceived value: Team identification and purchase inten‑
tion of team‑licensed apparel. Journal of Sport Management, 21(4), 540–554.
Lee, J. E., & Stoel, L. (2016). An unintended consequence of exaggerated maximum‑discount tensile price claims. Journal
of Product & Brand Management, 25(7), 700–709.
Lee, L., & Tsai, C. I. (2014). How price promotions influence postpurchase consumption experience over time. Journal of
Consumer Research, 40, 943–959.
MacCallum, R. C., Browne, M. W., & Sugawara, H. M. (1996). Power analysis and determination of sample size for covari‑
ance structural modeling. Psychological Methods, 1, 130–149.
Mano, H., & Elliott, M. (1997). Smart shopping: The origins and consequences of price savings. In D. MacInnis & M. Brucks
(Eds.), Advances in consumer research (pp. 504–510). Provo: Association for Consumer Research.
Mehrabian, A., & Russell, J. A. (1974). The basic emotional impact of environments. Perceptual and Motor Skills, 38(1),
283–301.
Miller, D. (2013). Consumption and its consequences. Hoboken: Wiley.
Monroe, K. B. (2003). Price and consumers’ perceptions of value (3rd ed.). New York: McGraw‑Hill.
Monroe, K. B., & Krishnan, R. (1985). The effect of price on subjective product evaluation. In J. Jacoby & J. Olson (Eds.), The
perception of merchandise and store quality (pp. 209–232). Lexington: Lexington Book.
Munger, J. L., & Grewal, D. (2001). The effects of alternative price promotional methods on consumers’ product evalua‑
tions and purchase intentions. Journal of Product & Brand Management, 10(3), 185–197.
Naylor, R. W., Raghunathan, R., & Ramanathan, S. (2006). Promotions spontaneously induce a positive evaluative response.
Journal of Consumer Psychology, 16(3), 295–305.
O’Neill, R., & Lamber, D. R. (2001). The emotional side of price. Psychology & Marketing, 18(3), 217–237.
Obermiller, C, & Bitner, M.J. (1984). Store atmosphere: A peripheral cue for product evaluation. In D.C., Stewart (Ed.), Amer‑
ican Psychological Association Annual Conference Proceedings, Consumer, Psychology Division. USA, p. 52–53.
Palma, D., de Dios Ortúzar, J., Rizzi, L. I., Guevara, C. A., Casaubon, G., & Ma, H. (2016). Modeling choice when price is a cue
for quality: A case study with Chinese wine consumers. Journal of Choice Modelling, 19, 24–39.
Peine, K., Heitmann, M., & Herrmann, A. (2009). Getting a feel for price affect: A conceptual framework and empirical
investigation of consumers’ emotional responses to price information. Psychology & Marketing, 26(1), 39–66.
Peter, J. P., & Olson, J. C. (1987). Consumer behavior and marketing strategy (1st ed.). New York: McGraw‑Hill/Irwin.
Raghubir, P., Inman, J. J., & Grande, H. (2004). The three faces of consumer promotions. California Management Review,
46(4), 23–42.
Rao, A. R., & Monroe, K. B. (1989). The effect of price, brand name, and store name on buyers’ perceptions of product qual‑
ity: An integrative review. Journal of Marketing Research, 26(3), 351–357.
Page 21 of 21
Leeand Chen‑Yu Fash Text (2018) 5:13
Rungtrakulchai, R. (2013). The relationship between price deals, perceived quality, and brand equity for a high involve‑
ment product. AU Journal of Management, 11(2), 36–45.
Schindler, R. M. (1998). Consequences of perceiving oneself as responsible for obtaining a discount: Evidence for smart‑
shopper feelings. Journal of Consumer Psychology, 7(4), 371–392.
Shiv, B., & Fedorikhin, A. (1999). Heart and mind in conflict: The interplay of affect and cognition in consumer decision
making. Journal of Consumer Research, 26, 278–292.
Shrout, P. E., & Bolger, N. (2002). Mediation in experimental and nonexperimental studies: New procedures and recom‑
mendations. Psychological Methods, 7(4), 422–445.
Slovic, P., Finucane, M. L., Peters, E., & MacGregor, D. G. (2007). The affect heuristic. European Journal of Operational
Research, 177(3), 1333–1352.
Suri, R., & Monroe, K. B. (2003). The effect of time constraints on consumers’ judgments of prices and products. Journal of
Consumer Research, 30(1), 92–104.
Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of
Retailing, 77(2), 203–220.
Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (1999). The role of perceived risk in the quality–value relationship: A study in
a retail environment. Journal of Retailing, 75(1), 77–105.
Teas, R. K., & Agarwal, S. (2000). The effects of extrinsic product cues on consumers’ perceptions of quality, sacrifice, and
value. Academy of Marketing Science Journal, 28(2), 278–290.
Urbany, J. E., Bearden, W. O., & Weilbacker, D. C. (1988). The effect of plausible and exaggerated reference price on con‑
sumer perceptions and price search. Journal of Consumer Research, 15(1), 95–110.
Yang, Z., & Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychol-
ogy & Marketing, 21(10), 799–822.
Yin, X., & Huang, J. (2014). Effects of price discounts and bonus packs on online impulse buying. Social Behavior & Person-
ality: An International Journal, 42(8), 1293–1302.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means‑end model and synthesis of evidence.
Journal of Marketing, 52, 2–22.
... According to the price-quality-value model (J.E. Lee & Chen-Yu, 2018), purchasing higher-priced apparel products implies greater sacrifice (paying more) and higher value, which might threaten the consumers' saving behaviour. ...
... Various studies have been undertaken across nations that determine the consumer's choice of apparel goods. For example, Ismail et al. (2012) in Pakistan; J.E. Lee and Chen-Yu (2018) in the United States; Florent et al. (2014) in Tanzania; Kaur and Malik (2015) in India; Ergin and Akbay (2010) in Turkey; Dulal and Islam (2018) in Bangladesh; Nyarunda (2016) in Kenya; Naseem et al. (2015) in Pakistan; Ifediora et al. (2017) in Nigeria; Sanad (2016) in Egypt; Shafi and Madhavaiah (2014) in India;and Palma et al. (2016) in China. Based on the empirical findings of these studies, quality, social status, fashion trend, advertisement, brand image, preference, peer influence, income, education, age, good fit, durability, and comfort are the major factors that influence the consumer's attitude towards imported and branded apparel goods. ...
... When it comes to apparel, consumers perceive a high level of savings for a product when a higher level of price discount is provided (J.E. Lee & Chen-Yu, 2018). Moreover, consumers believe that a high price indicates both higher quality and a greater monetary sacrifice (saving) in purchasing the product. ...
Article
Full-text available
Most consumers in developing countries are looking-out to purchasing apparel goods because of economic globalization. Consumers in developing countries usually associate high product prices with high quality; as a result, they need to purchase quality products at the going price. However, preferring to buy foreign-made goods hampers consumers' saving pattern and downscales locally made apparel industries. Therefore, this study investigated the determinants of consumer preference for purchasing imported apparel goods and their effect on perceived savings in Debre Markos District, Ethiopia. The study was based on consumer survey data collected from 366 randomly chosen apparel shoppers in the district, and a binary logistic regression model was employed. The study indicated that about 77% of respondents are inclined to buy foreign-made apparel. The logistic regression model results also show that advertising, fashion style, peer group, social status, and preference, income, occupation, and education level have all positively contributed to the rise in demand for imported apparel. However, unreasonable prices are perceived to negatively affect the demand for imported apparel. It is also Fasika Chekol ABOUT THE AUTHOR
... Hence, products with a high discount rate are assumed to have low quality (J. E. Lee & J. H. Chen-Yu, 2018). Practitioners are well aware of this perception, and surveys of managers in charge of new product development have shown that including the price during concept testing has a persuasive impact on customers' perception (Peng & Finn, 2008). ...
... Existing literature also pays attention to the significant influence of design (Gilal et al., 2018;Homburg et al., 2015;Hsu et al., 2018;Pleyers, 2021), price (Keller & Swaminathan, 2019;Lalwani & Forcum, 2016; J. E. Lee & J. H. Chen-Yu, 2018;Peng & Finn, 2008), and product colour (Ares & Deliza, 2010;Huang & Lu, 2016;Labrecque et al., 2013;Mai et al., 2016;Marozzo et al., 2020;Piqueras-fiszman & Spence, 2012;Van Doorn et al., 2014). However, as these were often discussed as individual elements, the magnitude of the overall effect encompassing all the elements was not fully understood. ...
Article
Research on the requirements for improving the quality of concept testing is scarce because of the high degree of confidentiality in new product developments. In this study, we clarified the factors that can improve sales performance estimation accuracy in concept testing. A randomised controlled trial for the Japanese personal computer market showed that presenting the product and corporate brand yielded the most accurate estimations. Other factors (design, price, and product colour) did not show significant effects. Even a good concept may not increase consumers’ purchase intention if there is lack of clarity about the product’s brand.
... It means that the shopper spent time and money to collect information at the point of purchase and the number of products compared (Aydinli et al., 2014). So price reductions significantly affected brand recall and loyalty (Lee & Chen Yu, 2018). ...
... Price reductions are an easy-toimplement promotional method and are a high incentive to buy only. Therefore, studies show that the information provided by price reductions is a reason to recall discounted brands on the market (Lee & Chen Yu, 2018). However, a previous study by researchers (Al-Nsour & Al-Sahli, 2022) showed that price reductions do not lead to brand awareness, which is consistent with the current finding that causes a conflict between the marketing and communication objectives of price reductions. ...
Article
Full-text available
The study aimed to resolve the impact of immediate sales promotion techniques on brand recall. The independent variable is divided into three sub-variables: price reductions, free samples, and purchasing vouchers. The research population is all foreign workers in the private sector in Riyadh. The figures show that the population size reached 3.4 million in 2021. A proportional stratification method was used, and the recommended sample size was 387 customers. The study concludes that a statistical impact of free samples on brand recall and there was no impact of immediate techniques on brand recall. Finally, the study presented and recommended a set of marketing implications to develop the uses of sales promotion techniques in retail stores.
... If merchants increase discounts as the total purchase amount increases, both the quantity and the value of the purchased products increase. However, Lee and Chen-Yu (2018) found that discounts have a positive effect on consumer value. Discounts are gifts for loyal customers (Park & Lennon, 2009). ...
Article
Full-text available
As e-commerce continues to develop rapidly, customer purchase behavior is increasingly motivated by multiple stimuli. However, consumers often find that the perceived value is lower than expectation after impulse buying and thus are reluctant to repeat these purchases. This study explored how to stimulate repeat buying after impulse buying. On the basis of the stimulus-organism-response framework and consumption impulse formation and enactment framework, a research model for investigating the factors affecting the willingness to impulse buy and the willingness to repeat buy was developed. Within the developed framework, the marketing stimuli, situational factors, and personality were the stimulus, consumer value was the organism, and the willingness to impulse buy and the willingness to repeat buy were the responses. We also examined the relationship between the willingness to impulse buy and the willingness to repeat buy. A sample of 315 Chinese consumers was recruited, and structural equation modeling was used to analyze the hypotheses. The results revealed that anticipated price, anticipated merchandise diversity, value consciousness, and coupon proneness were significantly positively related to consumer value, which in turn had a significant positive influence on the willingness to impulse buy and repeat buy. Moreover, the willingness to impulse buy can drive the willingness to repeat buy. These results may be used by companies to attract new consumers and increase customer loyalty.
... Previous research and the findings in this study contradict the law of demand which states that the more expensive an item is, the lower the demand for it and vice versa, the cheaper it is, the higher the demand (Feng et al., 2017). However, research of (Lee & Chen-Yu, 2018) states that when consumers cannot predict a quality of service before they get the service (in this case at dental clinics) consumers will have an expectation that the quality of service they will get will be in accordance with the price they pay. If there is a large price discount or the price position offered by the service provider is low, then there is a possibility that consumers will catch the perception that what they get is poor quality. ...
Article
Full-text available
The business development of dental clinics in the city of Bandung is growing rapidly along with public awareness of the importance of dental health. There has been a decrease in income at dental clinics in Bandung due to the pandemic in the last two years and similar business competition, so researchers want to help and find out what variables influence people's decisions in choosing a dental clinic. This research aimed at examining the effect of sales promotion, lifestyle, and price discount variables on dental care decisions at dental clinics in Bandung. The data were taken from 105 respondents who had experience having dental care at the dental clinics in Bandung by using online questionnaires. The analysis technique used multiple linear regression. The results showed that there was an influence of sales promotion, lifestyle, and price discount variables if they were combined simultaneously, on dental care decisions at the dental clinic in Bandung, but if it was seen partially, the price discount variable did not affect the decision to have dental care at dental clinics in Bandung. This research also proved that sales promotion and lifestyle had a positive and significant impact on dental treatment decisions at dental clinics in Bandung. The findings were further discussed in this research. Keywords—sales promotion; lifestyle; price discount; purchasing decision; dental clinics.
... The quality of service is a key element in the apparel marketing industry, due to the fact that in general terms the user compares the service offered in a certain place with that received in another commercial establishment, which triggers a positive consequence of the quality for the consumption habit under this approach. 77 Thirdly, the findings also show that store image has significant effects on both perceived customer service quality (negative) and trust in the product (positive). Store image is a perceptual factor in consumers that evidently affects their purchasing decisions; the research by Bhakuni et al. 80 mentions significant relationships between this variable and perceived trust and quality. ...
Article
Consumer clothing presents behaviors defined by pre-established trends and patterns in contemporary societies, and in general the consumption of textile products follows this trend. However, as a result of the COVID-19 pandemic and the restrictions perpetuated as a consequence of it, the consumption of textile products has been affected throughout the world. Under this premise, the objective of this research is to analyze the effect of store images, trust and perceived quality on the habits of the textile consumer in the context of the COVID-19 pandemic, for which, firstly, a review of the literature was carried out regarding the variables of the habits of the textile consumer and their relationship with the store image, trust and perceived quality, for which documents from academic search engines were taken into account, such as Scopus, Web of Science, ResearchGate and Google Scholar. On the other hand, a survey was conducted among textile consumers in Ecuador. The measurement tool was completed by 500 participants. In this way, the survey was conducted virtually through Google Forms and through the use of IBM SPSS software. The sampling technique consisted of convenience sampling. For the specific case of this investigation, it was decided to opt for the use of 500 valid questionnaires. This allowed one to propose a model of structural equations based on constructs associated with reference investigations. The main results of this research confirmed that there is a positive impact of the image of the trusted establishment on the product, as well as a positive impact on the general perceived quality of consumption habits (comparison) and on the effect of the quality of perceived service in consumption habits (planning).
... (Aswati, Komara, Satria & Roslina, 2022) Namun hal tersebut tidak selalu berjalan lancar sesuai ekspektasi perusahaan, jika tidak dibarengi oleh strategi promosi yang dapat dijangkau oleh masyarakat, daya beli konsumen, dan faktor lainnya. (Lee & Chen-Yu, 2018) Sebuah perusahaan dapat memenangkan persaingan dengan cara menampilkan produk terbaik yang dapat memenuhi selera konsumen. Pada dasarnya semakin tinggi tingkat persaingan, maka semakin banyak pilihan bagi konsumen untuk memilih produk yang sesuai dengan keinginan dan harapan konsumen. ...
Article
Full-text available
This research was conducted in a convection business in Bandung with the aim of knowing and analyzing the effect of product quality and promotion on purchasing decisions. The research method used is a quantitative method with a descriptive and verification approach. The sample used is respondents who have been as many as 100 people with a sampling technique. Based on the results of the study showed valid results on each item statement with a value of 0.3 and reliable by showing a value above 0.7. For Product Quality (X1) of 0.914, Promotion (X2) of 0.926, and Purchase Decision (Y) of 0.880. From the value (R Square) it is known that the effect of Product Quality (X1) and Promotion (X2) on Purchase Decisions (Y) is 0.836 or 83.6%. Product Quality (X1), Promotion (X2) and Purchase Decision (Y) are in a fairly good category. The regression coefficient value of Product Quality (X1) is 0.426. Promotion regression coefficient value (X2) is 0.397 So it can be said that purchasing decisions are influenced by Product Quality and Promotion by 83.6% while the remaining 16.4% is caused by other variables or other factors not examined. From the results of the research above, it can be concluded that product quality and promotion have a significant influence on purchasing decisions.
Article
Full-text available
Purpose: In the current environment of online shopping, the cost for consumers to obtain the information they need is decreasing, and the price of products is becoming more transparent, leading to increased price competition among enterprises for similar products. Given the widespread usage of limited-time promotion as a marketing method for enterprises in the context of e-commerce, it is great meaning to study and reveal the internal influence mechanism of limited-time promotion on consumers’ impulsive consumption. Design/methodology/approach: Based on the S-O-R theory, this study constructs a model of consumers’ impulsive consumption in the context of e-commerce from the perspective of perceived price discount, with evoking sense and pleasure as mediating variables and perceived time pressure as moderating variables. Findings: The results show that perceived price discount has a significant positive impact on evoking sense and pleasure. Evoking sense has a significant positive impact on pleasure. Both evoking sense and pleasure have a significant positive impact on consumers’ impulsive consumption. Meanwhile, perceived time pressure plays a significant moderating role between perceived price discount and evoking sense, between perceived price discount and pleasure, and between evoking sense and consumers’ impulsive consumption. Finally, based on the above findings, this study provides effective suggestions for e-commerce participants in the formulation of limited-time promotion strategies.
The purpose of this article is to contribute to an understanding of the impact of the Lebanese economic crisis on fashion buying behavior. It uses a qualitative approach by conducting semi-structured interviews with 29 Lebanese consumers. The study reveals that consumer fashion purchases are motivated by emotional, social, and functional drivers. It also indicates that subjective norms, such as societal and cultural values dictate buying behaviors. The findings provide further insights into social media and highlight its influence on shaping trends and making fashion products desirable. The article concludes that Lebanese consumers exhibit impulsive buying behavior, and explains how fashion brands can remain relevant amidst a wrenching economic crisis.
Book
This book helps students with the initial phases of their business research project, offering a clear step-by-step approach from defining aims and research questions through to conducting literature reviews and writing a methodology. Features to aid learning include chapter objectives, plentiful real-life examples to demonstrate good practice, exercises to apply the concepts and further reading for proactive investigation. A self-contained guide to every stage of writing an effective business research proposal, this text should be recommended reading for all advanced undergraduate and postgraduate students studying Business Research Methods and embarking on a research project of their own.
Article
Full-text available
Purpose Retailers are known to present tensile price claims (TPCs) stating high discounts to entice shoppers. Prior research on TPCs suggests that high TPC discounts increase purchase intentions. However, the current study proposes, first, that the TPC discount shifts expected price discount (EPD) and, second, that the gap between the actual price discount and the EPD influence perceptions of the discount deal. Support for these propositions would suggest that high TPC discounts will only be effective when they closely match the actual price discount. Therefore, the purpose of this paper was to evaluate the effectiveness of exaggerated maximum-discount TPCs. Design/methodology/approach Two experiments were used. Study 1 investigated the effect of exposure to a TPC on EPD. Study 2 examined discount discrepancy as a mediator of the relationship between a TPC and consumer perceptions (i.e. perceived savings and price fairness) and purchase intentions. PROCESS and ANOVA were used for the analysis. Findings This research showed that exposure to a TPC influenced consumers’ EPDs. As TPC discount increased, EPD increased and the discount discrepancy (i.e. actual price discount minus EPD) decreased (and, in some cases, became negative). The discount discrepancy influenced consumer perceptions of savings and fairness, as well as purchase intentions. Consequently, when the actual price discount encountered was not as large as the advertised TPC discount, the results showed a negative, indirect influence of exaggerated maximum-discount TPCs on consumers’ discount perceptions, mediated by the discount discrepancy. Originality/value Previous TPC studies found that the size of the TPC discount positively influences consumers’ discount perceptions, implying that larger discounts are more effective. However, this approach does not take into consideration the notion that larger TPC discounts increase consumer expectations about the size of discount and these expectations are used as a frame to evaluate a discount deal. The findings of the current research show a negative, indirect influence of exaggerated TPC discount on consumer perceptions and purchase intentions through discount discrepancy. Therefore, this study provides a new perspective to explain the influence of TPC discount size on consumer perceptions.
Article
Full-text available
Experience products are those the quality of which cannot be ascertained until after consumption, forcing consumers to base their purchase decision on an expectation of the product's quality. This expected quality is based on cues available before purchase, among which price is noteworthy, as consumers tend to believe that higher prices imply higher quality. But price also stresses the consumers' budget restriction, inducing a double -and conflicting- global effect on purchase probability. Using the traditional formulation of Random Utility Models for experience goods (i.e. introducing all attributes directly in the utility function) can lead to an endogeneity problem due to the omission of expected quality, introducing bias on the results. Using a stated wine choice experiment conducted in China as a case study, we correct for endogeneity by modelling each alternative's expected quality as a latent variable, explained by all available quality cues, including price. Then we explain choice as a trade-off between price and expected quality. This allows us to separate both effects of price and correct for at least one source of endogeneity while being consistent with behavioural theory; this has either been ignored or not treated correctly in previous literature. Moreover, as the model requires only a single quality indicator for each alternative to achieve identification, the respondents’ burden increases marginally. Our results show that the use of latent variables reduces endogeneity and effectively allows to measure both effects of price separately, obtaining higher significance and correct signs for its parameters.
Article
The authors expand and integrate prior price-perceived value models within the context of price comparison advertising. More specifically, the conceptual model explicates the effects of advertised selling and reference prices on buyers’ internal reference prices, perceptions of quality, acquisition value, transaction value, and purchase and search intentions. Two experimental studies test the conceptual model. The results across these two studies, both individually and combined, support the hypothesis that buyers’ internal reference prices are influenced by both advertised selling and reference prices as well as the buyers’ perception of the product's quality. The authors also find that the effect of advertised selling price on buyers’ acquisition value was mediated by their perceptions of transaction value. In addition, the effects of perceived transaction value on buyers’ behavioral intentions were mediated by their acquisition value perceptions. The authors suggest directions for further research and implications for managers.
Article
To practitioner and researcher alike, consumer values play an important role in understanding behavior in the marketplace. This paper presents a model linking perceived product attributes to values.
Article
This exploratory study considers the role emotion plays in relationships among several constructs surrounding price. The findings suggest that some aspects of emotion-here surprise and enjoyment-play a role in consumers' responses to and use of price information. Surprise and enjoyment were found to act in concert with involvement, price consciousness, and price-quality associations in respondents' complex reactions to price. Everyone's personal experience suggests that emotions can influence people's reactions to the price of products; this research lends preliminary empirical support to such everyday experiences. The results of this exploratory study clearly point to the need for more definitive studies in the future. (C) 2001 John Wiley & Sons, Inc.
Article
The purpose of this study was to investigate the potential mediating effect of perceived value in the relationship between team identification and intent to purchase collegiate team-licensed apparel. Direct effect, partially mediated, and fully mediated models were compared. The respondents were students (N =110) attending a large university in the southeastern United States. Participants first completed the Team Identification Scale and then viewed a slide depicting an article of licensed merchandise (t-shirt). Participants next completed the Perceived Value and Purchase Intention Scales. Goodness-of-fit statistics indicated that the direct effect model did not fit the data. The partially mediated and the fully mediated models fit equally well; the latter was more parsimonious and thus was chosen for further analysis. Team, identification explained 13.2% of the variance in perceived value: perceived value explained. 42.6% of the variance in purchase intentions. The findings indicate that team identification alone did not drive the purchase intentions in this study; it is important to take into account the perceived value of the team-licensed merchandise.
Article
Previous research on price changes has focused on the analysis of price increases on the basis of rational processes. This paper focuses on the examination of the moderating role of emotions on the relationship between the magnitude of price increases and perceived price fairness. In addition, we analyze the effect of perceived price fairness and willingness to pay in consideration of the moderating influence of emotions. The empirical results demonstrate that emotions have the potential to compensate for the negative impact of price increases on perceived price fairness and the willingness to pay.