Browsing by Author "Marques, Mariana Pinto"
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- A half truth is a whole lie! : why does "more sincere" pricing produce better shopping outcomes?Publication . Marques, Mariana Pinto; Elmashhara, Maher GeorgesPricing strategies in retail have drawn a lot of attention as companies aim to increase customers’ loyalty and trust, as well as enhance buying behavior. Some promotional pricing techniques are perceived as “more sincere” compared to others. The current study adopts and discusses a well-known promotional pricing technique that is highly used in fashion stores, especially in sale seasons, and investigates its “more sincere” (vs. “less sincere”) display on shopper intention to buy and positive Word-of-Mouth (WOM), considering the mediating role of credibility (trustworthiness) and brand personality, and the moderating role of brand knowledge. Two online experiments comprising a sample size of 282 respondents (140 female and 142 male) have been conducted to test the proposed research model. The results indicate that the adoption of a “more sincere” (compared to “less sincere”) display, enhances both credibility and brand personality, which in turn mediates the paths from promotional pricing type to intention to buy and positive WOM. Finally, the study revealed no significant moderation effect of brand knowledge. Based on these findings, we discuss our contribution to the theory and provide managerial implications to retailers suggesting the use of “sincerer” promotional pricing techniques.