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Evaluating consumer response to EDLPs

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  • Bailey, Ainsworth Anthony

Abstract

This paper reports on an investigation of factors influencing consumer response to every-day low prices (EDLP) policies. In study 1, an experimental study, sale proneness was found to have a significant effect on attitude toward EDLP and patronage intentions for the store implementing a new EDLP policy. Store loyalty affected patronage intentions but not attitude toward the EDLP. While there were no significant interactions between sale proneness and store loyalty, follow-up univariate tests revealed that consumers’ level of sale proneness has an impact on attitude toward the EDLP policy when store loyalty is low but not when store loyalty is high. In a follow-up survey, a number of predictions regarding the relationships among sale proneness, store loyalty, and income level and the dependent variables of attitude toward EDLP, attitude toward the retailer, and patronage intentions were made and tested. Support was found for all but two of the 9 hypotheses. Implications of the findings for retailers and future research agendas are discussed.

Suggested Citation

  • Bailey, Ainsworth Anthony, 2008. "Evaluating consumer response to EDLPs," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 211-223.
    • Handle: RePEc:eee:joreco:v:15:y:2008:i:3:p:211-223
    DOI: 10.1016/j.jretconser.2007.08.007
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    2. Kacen, Jacqueline J. & Hess, James D. & Walker, Doug, 2012. "Spontaneous selection: The influence of product and retailing factors on consumer impulse purchases," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 578-588.
    3. Jagrook Dawra & Kanupriya Katyal, 2023. "Decoding price promotions: a moderated mediation model of fairness, trust, and deal proneness," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(4), pages 248-265, August.
    4. Septianto, Felix & Lee, Michael SW. & Putra, Pragea Geldoffy, 2021. "Everyday “low price†or everyday “value†? The interactive effects of framing and construal level on consumer purchase intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).

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