The Moderating Role of Point-of-Purchase Price Information in Consumer Price Perception and Purchase Intention

Abstract

Aims: Advertised reference prices are one of the contextual prices that have attracted substantial interest. This research proposes the moderating effect of point-of-purchase price information related to product line and other brand prices on consumers’ price perception and purchase intention. Methods: Using the literature review of reference prices as a method, it was found that contextual moderators that influence consumer perceptions of point-of-purchase price information were limited. Consequently, integrating the literature of advertised reference prices and the literature gap in this field leads to the proposition. Conclusions: As a result, we propose that product-line prices and prices of other brands moderate the effect of an advertised reference price on the perceived value of consumers, the benefits of search, and the intention to purchase. Hence, the impact of advertised reference prices may be mitigated to a certain extent, which may reduce the deceptiveness of the advertised reference prices.