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Do Frequent Price Promotions Lower the Price Assessment? Reference Price Effect

In: 33 Phenomena of Purchasing Decisions

Author

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  • Sebastian Oetzel

    (Hochschule Fulda - University of Applied Sciences)

  • Andreas Luppold

Abstract

This chapter introduces the reference price effect, shows that frequent price promotions lower buyers’ price expectations, that buyers perceive the shelf price as a loss in the weeks following the price promotion, presents scientific studies on the reference price effect in price promotions, and discusses implications for marketing practice.

Suggested Citation

  • Sebastian Oetzel & Andreas Luppold, 2024. "Do Frequent Price Promotions Lower the Price Assessment? Reference Price Effect," Springer Books, in: 33 Phenomena of Purchasing Decisions, chapter 0, pages 129-133, Springer.
    • Handle: RePEc:spr:sprchp:978-3-658-44799-1_24
    DOI: 10.1007/978-3-658-44799-1_24
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