Title page for ETD etd-04012004-155002

Type of Document Dissertation
Author Dutta, Sujay
Author's Email Address sdutta2@lsu.edu
URN etd-04012004-155002
Title Postpurchase Implications of Low Price Guarantees and Consequences of Low Price Guarantee Default
Degree Doctor of Philosophy (Ph.D.)
Department Marketing (Business Administration)
Advisory Committee
Advisor Name Title
Abhijit Biswas Committee Chair
Alvin C. Burns Committee Member
Arthur G. Bedeian Committee Member
William C. Black Committee Member
Alvin Schupp Dean's Representative
  • low price guarantee
  • lpg
  • signal default
Date of Defense 2004-03-12
Availability unrestricted
Past research on consumer perceptions related to Low Price Guarantees (LPG) have primarily investigated effects of LPG on consumer search intentions, their perception of offer value and their purchase intentions. The present research had two major objectives: (i) to study the probable effect of LPG on consumers' intentions to search after the purchase and the boundary conditions of such effects; (ii) to study probable consequences of default of an LPG, that is, postpurchase discovery of lower prices in the marketplace despite promise to the contrary. It was shown that while LPG is likely to discourage prepurchase search it might encourage postpurchase search, subject to the level of penalty and consumer value and price consciousness. With respect to an LPG default, factors such as the location of the default ("within store" versus "between store"), the size of the default (the difference between the paid price and the later discovered lower price) and the time of the default (the period of time that elapsed between purchase and discovery of a lower price) are important and their effects on such consumer perceptions as attitude toward the retailer, perceived retailer credibility and repurchase intention were investigated subject to suitable boundary conditions. Two experiments were conducted to test proposed hypotheses. Theoretical and managerial contributions of the findings are discussed and suggestions for possible future research are provided.
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