The Effects of Price-Comparison Advertising on Buyers’ Perceptions of Acquisition Value, Transaction Value, and Behavioral Intentions
Abstract
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.
Integrity signals
Registry
Cites
Statistics
Claims the paper makes
Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
A positive effect of dynamic pricing on revenue and profits has been found in the hospitality industry.
“A positive effect of dynamic pricing on revenue and profits has been found in the hospitality industry [37, 44, 91, 94, 93, 4] as well as in other economic sectors [96, 95, 69, 80].”
From Consumer perception of price fairness and dynamic pricing: Evidence from Booking.com (2022) · cites this paper as [44]
Cites
Evaluating Structural Equation Models with Unobservable Variables and Measurement Error
Fornell, C., & Larcker, D. F. (1981) · Journal of Marketing Research · doi:10.2307/3151312 · Cited by 109,314 · see citing works
Evaluating structural equation models with unobservable variables and measurement error
Fornell, C., & Larcker, D. F. (1981) · Journal of Marketing Research · doi:10.1177/002224378101800104 · Cited by 109,190 · see citing works
Baron, R. M., & Kenny, D. A. (1986) · Journal of Personality and Social Psychology · doi:10.1037//0022-3514.51.6.1173 · Cited by 91,542 · see citing works
Baron, R. M., & Kenny, D. A. (1986) · Journal of Personality and Social Psychology · doi:10.1037/0022-3514.51.6.1173 · Cited by 91,532 · see citing works
Structural equation modeling in practice: A review and recommended two-step approach
Anderson, J. C., & Gerbing, D. W. (1988) · Psychological Bulletin · doi:10.1037/0033-2909.103.3.411 · Cited by 41,941 · see citing works
On the Evaluation of Structural Equation Models
Bagozzi, R. P., & Yi, Y. (1988) · Journal of the Academy of Marketing Science · doi:10.1007/bf02723327 · Cited by 26,163 · see citing works
Comparative fit indexes in structural models.
Bentler, P. M. (1990) · Psychological Bulletin · doi:10.1037/0033-2909.107.2.238 · Cited by 25,266 · see citing works
Lichtenstein, D. R., Netemeyer, R. G., & Burton, S. (1990) · Journal of Marketing · doi:10.1177/002224299005400305 · Cited by 1,054 · see citing works
Flagged first, then by citations
Cited by
Sorted by citations
Value-based Adoption of Mobile Internet: An empirical investigation
Kim, H.-W., Chan, H. C., & Gupta, S. (2007) · Decision Support Systems · doi:10.1016/j.dss.2005.05.009 · Cited by 2,084 · see citing works
The four levels of loyalty and the pivotal role of trust: a study of online service dynamics
Harris, L. C., & Goode, M. M. H. (2004) · Journal of Retailing · doi:10.1016/j.jretai.2004.04.002 · Cited by 1,425 · see citing works
The concept of perceived value: a systematic review of the research
Sánchez-Fernández, R., & Iniesta-Bonillo, M. Á. (2007) · Marketing Theory · doi:10.1177/1470593107083165 · Cited by 1,269 · see citing works
Kim, S., & Park, H. (2013) · International Journal of Information Management · doi:10.1016/j.ijinfomgt.2012.11.006 · Cited by 1,037 · see citing works
Reference Price Research: Review and Propositions
Mazumdar, T., Raj, S. P., & Sinha, I. (2005) · Journal of Marketing · doi:10.1509/jmkg.2005.69.4.84 · Cited by 848 · see citing works
The role of affective factors on perceived cruise vacation value
Duman, T., & Mattila, A. S. (2005) · Tourism Management · doi:10.1016/j.tourman.2003.11.014 · Cited by 652 · see citing works
Chen, S.-C., & Lin, C.-P. (2019) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2018.11.025 · Cited by 606 · see citing works
Dynamic Pricing and Consumer Fairness Perceptions
Haws, K. L., & Bearden, W. O. (2006) · Journal of Consumer Research · doi:10.1086/508435 · Cited by 520 · see citing works
Service value revisited: Specifying a higher-order, formative measure
Ruiz, D. M., Gremler, D. D., Washburn, J. H., & Carrión, G. C. (2008) · Journal of Business Research · doi:10.1016/j.jbusres.2008.01.015 · Cited by 361 · see citing works
Chen, P.-T., & Hu, H.-H. (2010) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2009.09.006 · Cited by 269 · see citing works
Consumers’ perceptions of the fairness of price-matching refund policies
Kukar-Kinney, M., Xia, L., & Monroe, K. B. (2007) · Journal of Retailing · doi:10.1016/j.jretai.2007.03.005 · Cited by 174 · see citing works
Self-citationHewei, T., & Youngsook, L. (2022) · Entertainment Computing · doi:10.1016/j.entcom.2021.100474 · Cited by 169 · see citing works
The dual role of price: Decomposing consumers’ reactions to price
Völckner, F. (2008) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-007-0076-7 · Cited by 160 · see citing works
I Have Paid Less Than You! The Emotional and Behavioral Consequences of Advantaged Price Inequality
Gelbrich, K. (2011) · Journal of Retailing · doi:10.1016/j.jretai.2011.03.003 · Cited by 132 · see citing works
Consumer response to norm-breaking pricing events in e-commerce
Garbarino, E., & Maxwell, S. (2010) · Journal of Business Research · doi:10.1016/j.jbusres.2008.12.010 · Cited by 126 · see citing works
An exploratory study of service value in the USA and Ecuador
Brady, M. K., & Robertson, C. J. (1999) · International Journal of Service Industry Management · doi:10.1108/09564239910289003 · Cited by 117 · see citing works
Consumers’ willingness to pay for upcycled foods
Bhatt, S., Ye, H., Deutsch, J., Ayaz, H., & Suri, R. (2020) · Food Quality and Preference · doi:10.1016/j.foodqual.2020.104035 · Cited by 112 · see citing works
Is a good deal always fair? Examining the concepts of transaction value and price fairness
Xia, L., & Monroe, K. B. (2010) · Journal of Economic Psychology · doi:10.1016/j.joep.2010.07.001 · Cited by 100 · see citing works
Self-citationAddressing food waste: How to position upcycled foods to different generations
Zhang, J., Ye, H., Bhatt, S., Jeong, H., Deutsch, J., Ayaz, H., & Suri, R. (2021) · Journal of Consumer Behaviour · doi:10.1002/cb.1844 · Cited by 101 · see citing works
On Consumer Beliefs about Quality and Taste
Spiller, S. A., & Belogolova, L. (2016) · Journal of Consumer Research · doi:10.1093/jcr/ucw065 · Cited by 95 · see citing works
Price Fairness of Airline Ancillary Fees: An Attributional Approach
Chung, J. Y., & Petrick, J. F. (2013) · Journal of Travel Research · doi:10.1177/0047287512457261 · Cited by 88 · see citing works
Seeking the perfect price: Consumer responses to personalized price discrimination in e-commerce
Hufnagel, G., Schwaiger, M., & Weritz, L. (2022) · Journal of Business Research · doi:10.1016/j.jbusres.2021.10.002 · Cited by 78 · see citing works
Consumer perception of price fairness and dynamic pricing: Evidence from Booking.com
Alderighi, M., Nava, C. R., Calabrese, M., Christille, J.-M., & Salvemini, C. B. (2022) · Journal of Business Research · doi:10.1016/j.jbusres.2022.03.017 · Cited by 63 · see citing works
Loyalty in e-Tailing: A Conceptual Framework
Grewal, D., Lindsey-Mullikin, J., & Munger, J. (2004) · Journal of Relationship Marketing · doi:10.1300/j366v02n03_03 · Cited by 48 · see citing works
Self-citationMarketing tactics discouraging price search: Deception and competition
Lindsey-Mullikin, J., & Petty, R. D. (2011) · Journal of Business Research · doi:10.1016/j.jbusres.2009.10.003 · Cited by 41 · see citing works
Pricing and Public Policy: A Research Agenda and an Overview of the Special Issue
Grewal, D., & Compeau, L. D. (1999) · Journal of Public Policy & Marketing · doi:10.1177/074391569901800102 · Cited by 40 · see citing works
Self-citationUppercase Premium Effect: The Role of Brand Letter Case in Brand Premiumness
Yu, Y., Zhou, X., Wang, L., & Wang, Q. (2022) · Journal of Retailing · doi:10.1016/j.jretai.2021.03.002 · Cited by 29 · see citing works
Consumers' Interpretations of the Semantic Phrases Found in Reference Price Advertisements
COMPEAU, L. D., LINDSEY‐MULLIKIN, J., GREWAL, D., & PETTY, R. D. (2004) · Journal of Consumer Affairs · doi:10.1111/j.1745-6606.2004.tb00471.x · Cited by 25 · see citing works
Self-citationBuilding customer-based brand equity of domestic brands: Role of brand equity dimensions
Sharma, R. (2017) · Metamorphosis: A Journal of Management Research · doi:10.1177/0972622517702187 · Cited by 19 · see citing works
Tudoran, A. A., & Olsen, S. O. (2017) · Journal of Consumer Behaviour · doi:10.1002/cb.1633 · Cited by 11 · see citing works
“…measured with four open-ended questions to measure the four dimensions of the construct (i.e. expected price, Simonson and Drolet, 2004; fair price, Grewal et al., 1998; inexpensive/minimum price, Wertenbroch and Skiera, 2002 and maximum price a consumer is willing to pay for a given quantity of…”
MethodCarvache-Franco, M., Carrascosa-López, C., & Carvache-Franco, W. (2021) · Land · doi:10.3390/land10111133 · Cited by 11 · see citing works
Wanda, M., & Pasaribu, P. (2023) · Journal of Business, Management, and Social Studies · doi:10.53748/jbms.v2i3.46 · Cited by 2 · see citing works
- Authors
- Grewal, D., Monroe, K. B., & Krishnan, R.
- Affiliations
- University of Miami (US)
- University of Illinois Urbana-Champaign (US)
- California Polytechnic State University (US)
- ORCID
- Grewal, Dhruv
- Venue
- Journal of Marketing
- Publisher
- SAGE Publications
- Published
- 1998-04
- Volume
- 62
- Issue
- 2
- Pages
- 46-59
- ISSN
- 0022-2429 (ISSN-L)
- 1547-7185
- OpenAlex
- W4253828088
- Cited by
- 1,300
- References
- 8
- Citations by year
- 2026: 22 · 2025: 41 · 2024: 48 · 2023: 48 · 2022: 55 · 2021: 86 · 2020: 69 · 2019: 63 · 2018: 76 · 2017: 65 · 2016: 57 · 2015: 83 · 2014: 76 · 2013: 52 · 2012: 52
- FWCI
- 52.71
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Marketing (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior and Marketing Influence
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
- Keywords
- internal reference price, acquisition value, transaction value, perceived quality, purchase intention, search intent, reference prices
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
