IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v44y2018icp201-213.html
   My bibliography  Save this article

Does price sensitivity and price level influence store price image and repurchase intention in retail markets?

Author

Listed:
  • Graciola, Ana Paula
  • De Toni, Deonir
  • de Lima, Vinicius Zanchet
  • Milan, Gabriel Sperandio

Abstract

In today's competitive price environment, customers are more sensitive to store price image as a driver of the decision of where to buy. This paper addresses the impact of store price image on repurchase intentions in the context of retail markets in the south of Brazil. The moderating effects of price sensitivity and price level are also analyzed. A comprehensive model reports determinants of repurchase intentions. A descriptive quantitative research study is undertaken, based on an applied survey. Partial least squares–structural equation modeling (PLS–SEM) is used, supported by Smart-PLS 3.2.7. The model sample includes 207 customers, university students who had experienced retail purchases in different formats of supermarkets. The data analysis yields surprising findings. Results show that store price image positively impacted on customer repurchase intentions, with low and high price levels moderating these effects. Price sensitivity also presented moderating effects as another important variable acting on the relation between store price image and repurchase intentions for both low and high price sensitivity customers. The implications of these findings are discussed with suggestions for future research.

Suggested Citation

  • Graciola, Ana Paula & De Toni, Deonir & de Lima, Vinicius Zanchet & Milan, Gabriel Sperandio, 2018. "Does price sensitivity and price level influence store price image and repurchase intention in retail markets?," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 201-213.
    • Handle: RePEc:eee:joreco:v:44:y:2018:i:c:p:201-213
    DOI: 10.1016/j.jretconser.2018.06.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698917305775
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2018.06.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marko Sarstedt & Erik Mooi, 2014. "The Market Research Process," Springer Texts in Business and Economics, in: A Concise Guide to Market Research, edition 2, chapter 2, pages 11-23, Springer.
    2. Jeoung-Hak Lee & Hyun-Duck Kim & Yong Jae Ko & Michael Sagas, 2011. "The influence of service quality on satisfaction and intention: A gender segmentation strategy," Sport Management Review, Taylor & Francis Journals, vol. 14(1), pages 54-63, January.
    3. Ferguson, Jodie L., 2014. "Implementing price increases in turbulent economies: Pricing approaches for reducing perceptions of price unfairness," Journal of Business Research, Elsevier, vol. 67(1), pages 2732-2737.
    4. Lichtenstein, Donald R & Bloch, Peter H & Black, William C, 1988. "Correlates of Price Acceptability," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 243-252, September.
    5. Seung Hwan (Shawn) Lee & Scott Fay, 2017. "Why offer lower prices to past customers? Inducing favorable social price comparisons to enhance customer retention," Quantitative Marketing and Economics (QME), Springer, vol. 15(2), pages 123-163, June.
    6. Stephan Zielke, 2011. "Integrating emotions in the analysis of retail price images," Post-Print hal-00740243, HAL.
    7. Bolton, Lisa E & Warlop, Luk & Alba, Joseph W, 2003. "Consumer Perceptions of Price (Un)Fairness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(4), pages 474-491, March.
    8. Alba, Joseph W, et al, 1994. "The Influence of Prior Beliefs, Frequency Cues, and Magnitude Cues on Consumers' Perceptions of Comparative Price Data," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 219-235, September.
    9. Zielke, Stephan, 2014. "Shopping in discount stores: The role of price-related attributions, emotions and value perception," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 327-338.
    10. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    11. Winer, Russell S, 1986. "A Reference Price Model of Brand Choice for Frequently Purchased Products," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(2), pages 250-256, September.
    12. Kim, Youn-Kyung & Lee, Min-Young & Park, Soo-Hee, 2014. "Shopping value orientation: Conceptualization and measurement," Journal of Business Research, Elsevier, vol. 67(1), pages 2884-2890.
    13. Franziska Völckner & Julian Hofmann, 2007. "The price-perceived quality relationship: A meta-analytic review and assessment of its determinants," Marketing Letters, Springer, vol. 18(3), pages 181-196, September.
    14. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
    15. Gustav Feichtinger & Alfred Luhmer & Gerhard Sorger, 1988. "Optimal Price and Advertising Policy for a Convenience Goods Retailer," Marketing Science, INFORMS, vol. 7(2), pages 187-201.
    16. Peschel, Anne Odile & Zielke, Stephan & Scholderer, Joachim, 2016. "Reference Price Formation for Product Innovations – the Role of Consistent Price-Value-Relationships," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244459, International European Forum on System Dynamics and Innovation in Food Networks.
    17. Dolbec, Pierre-Yann & Chebat, Jean-Charles, 2013. "The Impact of a Flagship vs. a Brand Store on Brand Attitude, Brand Attachment and Brand Equity," Journal of Retailing, Elsevier, vol. 89(4), pages 460-466.
    18. Mbaye Fall Diallo & Patricia Coutelle-Brillet & Arnaud Riviere & Stephan Zielke, 2015. "How Do Price Perceptions of Different Brand Types Affect Shopping Value and Store Loyalty?," Post-Print hal-01737679, HAL.
    19. Anil Kaul & Dick R. Wittink, 1995. "Empirical Generalizations About the Impact of Advertising on Price Sensitivity and Price," Marketing Science, INFORMS, vol. 14(3_supplem), pages 151-160.
    20. Morwitz, Vicki G & Johnson, Eric J & Schmittlein, David C, 1993. "Does Measuring Intent Change Behavior?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(1), pages 46-61, June.
    21. Cross, Robert G. & Dixit, Ashutosh, 2005. "Customer-centric pricing: The surprising secret for profitability," Business Horizons, Elsevier, vol. 48(6), pages 483-491.
    22. Lee, Jeoung-Hak & Kim, Hyun-Duck & Ko, Yong Jae & Sagas, Michael, 2011. "The influence of service quality on satisfaction and intention: A gender segmentation strategy," Sport Management Review, Elsevier, vol. 14(1), pages 54-63, February.
    23. Davis, Lizhu & Hodges, Nancy, 2012. "Consumer shopping value: An investigation of shopping trip value, in-store shopping value and retail format," Journal of Retailing and Consumer Services, Elsevier, vol. 19(2), pages 229-239.
    24. Derek D. Rucker & Adam D. Galinsky, 2008. "Desire to Acquire: Powerlessness and Compensatory Consumption," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 257-267, April.
    25. Erickson, Gary M & Johansson, Johny K, 1985. "The Role of Price in Multi-attribute Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(2), pages 195-199, September.
    26. Marko Sarstedt & Erik Mooi, 2014. "A Concise Guide to Market Research," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-53965-7, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Weiqing Li & Qianyi Dan & Maomao Chi & Weijun Wang, 2021. "Influence of Price Level and Perceived Price Dispersion on Consumer Information Search Behaviour: Moderating Effect of Durables and Consumables," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    2. Ting, Hiram & Thaichon, Park & Chuah, Francis & Tan, Sharon Rebecca, 2019. "Consumer behaviour and disposition decisions: The why and how of smartphone disposition," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 212-220.
    3. Elhajjar, Samer, 2023. "Factors influencing buying behavior of Lebanese consumers towards fashion brands during economic crisis: A qualitative study," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    4. Kim, Hyunji & Schnall, Simone, 2021. "Profit for friends, fairness for strangers: Social distance reverses the endowment effect in proxy decision making," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    5. Antwi, Samuel, 2021. "“I just like this e-Retailer†: Understanding online consumers repurchase intention from relationship quality perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    6. Zhang, Shengliang & Guo, Dinghao & Li, Xiaodong, 2023. "The rhythm of shopping: How background music placement in live streaming commerce affects consumer purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    7. Tyrone T. Lin & Yu-Qi Yeh & Shu-Yen Hsu, 2022. "Analysis of the Effects of Perceived Value, Price Sensitivity, Word-of-Mouth, and Customer Satisfaction on Repurchase Intentions of Safety Shoes under the Consideration of Sustainability," Sustainability, MDPI, vol. 14(24), pages 1-19, December.
    8. Yi Li & Liangru Yu, 2020. "Factors Influencing Social Media Users’ Continued Intent to Donate," Sustainability, MDPI, vol. 12(3), pages 1-13, January.
    9. Graciola, Ana Paula & De Toni, Deonir & Milan, Gabriel Sperandio & Eberle, Luciene, 2020. "Mediated-moderated effects: High and low store image, brand awareness, perceived value from mini and supermarkets retail stores," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    10. Cheah, Jun-Hwa & Waller, David & Thaichon, Park & Ting, Hiram & Lim, Xin-Jean, 2020. "Price image and the sugrophobia effect on luxury retail purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    11. Nizar Souiden, 2024. "Recreational marijuana: Ethical positions and consumption status in explaining attitudes, perceived law ethicalness, and perceived corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4512-4531, September.
    12. Miao, Xiaoyu & Niu, Ben & Yang, Congcong & Feng, Yuanyue, 2023. "Examining the gamified effect of the blindbox design: The moderating role of price," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    13. Feng Xu & Wenxia Niu & Shuaishuai Li & Yuli Bai, 2020. "The Mechanism of Word-of-Mouth for Tourist Destinations in Crisis," SAGE Open, , vol. 10(2), pages 21582440209, May.
    14. Zhenjie Wang & Chunling Zhu & Shanwu Tian & Ping Li, 2019. "Differentiation and pricing power of online retailers," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-20, December.
    15. Jérôme Baray & Gérard Cliquet & Yves Soulabail, 2023. "Thematic communities and image of french mass-market retailers in the media [Communautés thématiques et image des groupes de la grande distribution française dans les médias]," Post-Print hal-04251853, HAL.
    16. Sha Zhang & Xiting Wu & Yonggui Wang & Peiqi Jiang, 2024. "Does time of day affect consumers’ price sensitivity?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    17. Scheidegger, Gianluca & Linzmajer, Marc & Rudolph, Thomas, 2020. "Price discount strategies in times of increasing price transparency: How price consciousness and price comparison moderate the effect of discount strategy on store price image," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 74(4), pages 384-402.
    18. Elizabeth Chinomona, 2019. "Modelling the Drivers of Impulsive Buying Behaviour: A Case of South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 27-38.
    19. Stephan Zielke & Deonir Toni & José Afonso Mazzon, 2023. "Cognitive, emotional and inferential paths from price perception to buying intention in an integrated brand price image model," SN Business & Economics, Springer, vol. 3(1), pages 1-25, January.
    20. Jung-Sup Bae & Weisheng Chiu & Sang-Back Nam, 2021. "Sport Fans’ Price Sensitivity Based on Loyalty Levels: A Case of Korean Professional Baseball League," Sustainability, MDPI, vol. 13(6), pages 1-13, March.
    21. Wen, Tong & Leung, Xi Y. & Li, Bin & Hu, Lingyan, 2021. "Examining framing effect in travel package purchase: An application of double-entry mental accounting theory," Annals of Tourism Research, Elsevier, vol. 90(C).
    22. Büyükdağ, Naci & Soysal, Ayşe Nur & Ki̇tapci, Olgun, 2020. "The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    23. Do, Quynh Huong & Kim, Thai Young & Wang, Xueqin, 2023. "Effects of logistics service quality and price fairness on customer repurchase intention: The moderating role of cross-border e-commerce experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    24. Kim, Jina & Ji, HongGeun & Oh, Soyoung & Hwang, Syjung & Park, Eunil & del Pobil, Angel P., 2021. "A deep hybrid learning model for customer repurchase behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    25. Souiden, Nizar & Chaouali, Walid & Baccouche, Mona, 2019. "Consumers’ attitude and adoption of location-based coupons: The case of the retail fast food sector," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 116-132.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan Zielke & Deonir Toni & José Afonso Mazzon, 2023. "Cognitive, emotional and inferential paths from price perception to buying intention in an integrated brand price image model," SN Business & Economics, Springer, vol. 3(1), pages 1-25, January.
    2. Rabbanee, Fazlul K. & Roy, Rajat & Sharma, Piyush, 2022. "Contextual differences in the moderating effects of price consciousness and social desirability in pay-what-you-want (PWYW) pricing," Journal of Business Research, Elsevier, vol. 141(C), pages 13-25.
    3. Martín-Herrán, Guiomar & Taboubi, Sihem & Zaccour, Georges, 2012. "Dual role of price and myopia in a marketing channel," European Journal of Operational Research, Elsevier, vol. 219(2), pages 284-295.
    4. Elshiewy, Ossama & Peschel, Anne O., 2022. "Internal reference price response across store formats," Journal of Retailing, Elsevier, vol. 98(3), pages 496-509.
    5. Eric T. Anderson & Duncan I. Simester, 2008. "—Does Demand Fall When Customers Perceive That Prices Are Unfair? The Case of Premium Pricing for Large Sizes," Marketing Science, INFORMS, vol. 27(3), pages 492-500, 05-06.
    6. Pick, Doreén & Zielke, Stephan, 2015. "How electricity providers communicate price increases – A qualitative analysis of notification letters," Energy Policy, Elsevier, vol. 86(C), pages 303-314.
    7. Lillian L. Cheng & Kent B. Monroe, 2013. "An appraisal of behavioral price research (part 1): price as a physical stimulus," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 103-129, September.
    8. Isabelle Collin-Lachaud & Mbaye Fall Diallo, 2021. "Smartphone use during shopping and store loyalty: The role of social influence," Post-Print hal-03156195, HAL.
    9. Chandrashekaran, R., 2001. "The implications of individual differences in reference price utilization for designing effective price communications," Journal of Business Research, Elsevier, vol. 53(2), pages 85-91, August.
    10. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    11. Kjellberg, Hans & Sjögren, Ebba & Krafve, Linus Johansson, 2023. "The functions of known to be inaccurate prices in markets: A cross-country comparison of pharmaceutical list pricing," Journal of Business Research, Elsevier, vol. 167(C).
    12. Rokonuzzaman, Md & Harun, Ahasan & Al-Emran, Md & Prybutok, Victor R., 2020. "An investigation into the link between consumer's product involvement and store loyalty: The roles of shopping value goals and information search as the mediating factors," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    13. Talke, Katrin & Müller, Sebastian & Wieringa, Jaap E., 2017. "A matter of perspective: Design newness and its performance effects," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 399-413.
    14. Chadwick J. Miller & Daniel C. Brannon & Jim Salas & Martha Troncoza, 2021. "Advertising, incentives, and the upsell: how advertising differentially moderates customer- vs. retailer-directed price incentives’ impact on consumers’ preferences for premium products," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1043-1064, November.
    15. Zhang, Ke & Hou, Yuansi & Li, Gang, 2020. "Threat of infectious disease during an outbreak: Influence on tourists' emotional responses to disadvantaged price inequality," Annals of Tourism Research, Elsevier, vol. 84(C).
    16. Fennell, Patrick B. & Coleman, Joshua T. & Kuo, Andrew, 2020. "The moderating role of donation quantifiers on price fairness judgments," Journal of Business Research, Elsevier, vol. 110(C), pages 464-473.
    17. Scarpi, Daniele & Pizzi, Gabriele & Raggiotto, Francesco & Mason, Michela, 2018. "A qualitative comparative analysis (QCA) of satisfaction toward extreme sporting Events," Australasian marketing journal, Elsevier, vol. 26(4), pages 358-368.
    18. Meldrick Arjay A. Magsino & Reynold S. Beredo & Arex A. Anza, 2014. "The Motivational Effects of LPU Awards of Excellence: Basis for Improvement," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 371-397, December.
    19. Yoshida, Masayuki, 2017. "Consumer experience quality: A review and extension of the sport management literature," Sport Management Review, Elsevier, vol. 20(5), pages 427-442.
    20. Boccali, Filippo & Mariani, Marcello M. & Visani, Franco & Mora-Cruz, Alexandra, 2022. "Innovative value-based price assessment in data-rich environments: Leveraging online review analytics through Data Envelopment Analysis to empower managers and entrepreneurs," Technological Forecasting and Social Change, Elsevier, vol. 182(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:44:y:2018:i:c:p:201-213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.