Effects of Expiration Date-Based Pricing on Brand Image Perceptions

Aristeidis Theotokis, Katerina Pramatari, Michael Tsiros

Research output: Contribution to journalArticle

34 Citations (Scopus)

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 2012

Fingerprint

Pricing
Brand image
Consumer evaluation
Shelf life
Quality perception
Grocery
Consumer response
Cause-related marketing
Retail
Wisdom
Violations
Perishable products
Marketing activities
Field experiment
Distrust
Agenda
Psychological contract
Retailers

Keywords

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

ASJC Scopus subject areas

  • Marketing

Cite this

Effects of Expiration Date-Based Pricing on Brand Image Perceptions. / Theotokis, Aristeidis; Pramatari, Katerina; Tsiros, Michael.

In: Journal of Retailing, Vol. 88, No. 1, 03.2012, p. 72-87.

Research output: Contribution to journalArticle

Theotokis, Aristeidis ; Pramatari, Katerina ; Tsiros, Michael. / Effects of Expiration Date-Based Pricing on Brand Image Perceptions. In: Journal of Retailing. 2012 ; Vol. 88, No. 1. pp. 72-87.
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