| Keywords [eng] |
price-comparison advertising, exaggerated reference price, plausible reference price, believability, perceived savings, perceived quality, acquisition value, transaction value, utilitarian product, hedonic product |
| Abstract [eng] |
The Effects of Price-Comparison Advertising on Buyers' Perception of Offer Value and Intention to Buy The aim of this research – to identify the effects of price-comparison advertising on buyer’s perception of offer value and intention to buy. This research contains three main parts – review of the existing literature on this topic, methodology of the research and statistical analysis of the survey results. The literature analysis gives an overview of a concept of price-comparison advertising. Also, it identifies the types of reference prices as exaggerated and plausible, and effects that they have on believability, perceptions of savings, quality. Also it explores the formation of perceived value and effect of product type – hedonic versus utilitarian. Based on literature analysis, TAM model, and objectives of this paper, research model and methodology was developed. To create a study 2 (plausible and exaggerated reference price) x 2 (hedonic product and utilitarian product) between-subjects factorial design experiment was chosen. Type of reference price and product type were used as manipulation stimulus. The research was conducted using electronic survey, and it was answered by 228 responds, with 57 respondents filling in the questionnaires, either A, B, C or D. Research aim was to identify the effects of price-comparison advertising on perception of offer value, through perceived savings and perceived quality, and the impact perceived acquisition and transaction values have on intention to buy, taking into account the believability of the offer and type of product. Survey results were analysed using statistical data analysis software SPSS. The analysis revealed that usage of exaggerated reference price positively influences buyer’s perception of savings, negatively – believability, and has no influence on perception of quality. Also, study shows that perceived quality has a higher impact on perceived acquisition value than perceived savings, and perceived savings have higher impact on perceived transaction value than perceived quality. Moreover, product type does not moderate these relationships. Furthermore, study revealed that perceived savings positively correlates with intention to buy, and that perceived acquisition value is a strong predictor of intention to buy. However, perceived transaction value has no significant impact on intention to buy. |
