Date of Award

1998

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Marketing (Business Administration)

First Advisor

Abhijit Biswas

Second Advisor

Richard G. Netemeyer

Abstract

The purpose of this dissertation is two fold. The first objective is to assess the effect of price promotion on consumers' evaluation of the value of the deal independent of the specific IRP used by consumers. Towards this end, a subjective measure called "perceived fairness of the offer price" is introduced in a model hypothesizing relations among transaction utility, acquisition utility, and perceived value of the deal. The proposed model was compared to an existing model designed to predict and explain perceived value of the deal using a survey-based methodology, in the first study. Results indicate that the proposed model has a better fit and the proposed construct better predicts the value of the deal. The second objective of this dissertation is to study the effect of semantic cues on consumers' perceptions about the value of the deal, search intention and shopping intention. These effects were determined using two 2 x 2 x 2 experimental designs in the second and third studies. In the second study the price level ($249 {\it vs\/}. \$399), nature of price comparison (between store vs. within store) and cue concreteness (concrete vs. abstract) were manipulated. Results indicate that semantic cues affect consumers perceptions of value and search intentions at moderate price levels. At exaggerated price levels there is no effect of cue concreteness. At moderate price levels, the concrete price cue is more effective than abstract cues in the case of between store price comparison. Also, the between store price comparison is more effective than the within store price comparison in the case of concrete cues. In the third study, the location where the ad is viewed (at home vs. in store), nature of price comparison (between store vs. within store), and cue concreteness (concrete vs. abstract) were manipulated. Results indicate that semantic cues affect consumers' evaluation of the price promotion when the consumers view the ad at home. When the consumers view the price promotion in the store, the semantic cues do not seem to affect their evaluation.

ISBN

9780591997873

Pages

150

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