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The Influence of Price Reductions on Shoppers' Reference Price and Reservation Price when Upgrading to Premium Brands

Miranda, Mario J (2001) The Influence of Price Reductions on Shoppers' Reference Price and Reservation Price when Upgrading to Premium Brands. Journal of Targeting, Measurement and Analysis for Marketing, 10 (1). pp. 42-54. ISSN 0967-3237

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Abstract

A regular feature of retailers' promotional objectives is to get shoppers to upgrade their purchase to more expensive brands because premium merchandise invariably includes bigger profit margins. Often retailers temporarily discount premium brands so that shoppers may be motivated to purchase them. The price of an item is a key variable in communicating to the customer the value of the product (1). The level of price also determines the extent of income and profitability the firm can generate from the activity associated with the product. Using price as a base for promoting a product is a strategy that is often used by retailers and marketers to facilitate purchase. Literature makes it clear that the shoppers' perceptions of price are central to influencing their purchase behaviour.

Item Type: Article
Uncontrolled Keywords: price specials, reference price, reservation price, premium brand, retail, retailers, retailing, stores, marketing
Subjects: RFCD Classification > 350000 Commerce, Management, Tourism and Services
Faculty/School/Research Centre/Department > School of Hospitality Tourism and Marketing
Depositing User: Mr Angeera Sidaya
Date Deposited: 29 May 2006
Last Modified: 23 May 2013 16:38
URI: http://vuir.vu.edu.au/id/eprint/438
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