AN EXPERIMENTAL ASSESSMENT OF EFFECTS ASSOCIATED WITH ALTERNATIVE TENSILE PRICE CLAIMS

Effects associated with three methods that are used by retailers to advertise a given range of savings (ie, stating a minimum, maximum, or range of savings) are examined across two different retailer types (ie, a department and a discount store) in a between subjects experimental design. Effects of the various ways to advertise the range of savings are compared to an objective discount claim offered at the midpoint of the savings range. Predictions are offered based on rationales drawn from an anchoring and adjustment conceptual framework and the perceived objectivity of the advertised discount claims. Results indicate that stating the maximum level of savings in the range or an objective claim at the midpoint of the range is perceived more favorably than stating the minimum level or full range of savings, Implications of these results for retailers are addressed.