Effects of Expiration Date-Based Pricing on Brand Image Perceptions

Aristeidis Theotokis, Katerina Pramatari, Michael Tsiros

Research output: Contribution to journalArticle

39 Scopus citations

Abstract

Expiration date-based pricing (EDBP) occurs when a grocery retailer reduces the price of a perishable product according to its remaining shelf life. While, conventional wisdom suggests that this practice leads to negative consumer evaluations of brand quality, a series of field experiments reveal negative effects on brand quality perceptions only among loyal consumers and those who perceive low risk associated with perishables. The effect is also mediated by consumer distrust (Study 1). In addition, EDBP has no effect on brand quality image if consumers are already familiar with this pricing practice (Study 2), and it may even generate positive consumer evaluations when framed as a cause-related marketing activity to reduce waste (Study 3). Additional evidence indicates that psychological contract violation perceptions provide the underlying mechanism for explaining consumer responses to EDBP (Study 4). This article ends with an agenda for further research and implications for retail practice.

Original languageEnglish (US)
Pages (from-to)72-87
Number of pages16
JournalJournal of Retailing
Volume88
Issue number1
DOIs
StatePublished - Mar 1 2012

    Fingerprint

Keywords

  • Expiration date
  • Grocery retailing
  • Perishables
  • Pricing
  • Psychological contract violation

ASJC Scopus subject areas

  • Marketing

Cite this