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Are Low Price Guarantees And Price Matching Guarantees Created Equal: Examining The Effects Of Different Types Of Price Guarantees On Consumers’ Evaluations, Swati Verma

Wayne State University Dissertations

Retailers offer one of Low Price Guarantees (LPGs) or Price Matching Guarantees (PMGs) to signal their price position in the marketplace. Past literature has assumed that both LPG and PMG work similarly as signals of low prices, and consequently, LPG and PMG have been used interchangeably in both research and practice. In my dissertation, I posit that LPG and PMG send out different price signals, and therefore have different effects on consumers’ evaluations. Across four studies, I show that LPGs signal lower prices than PMGs, and so LPGs lead to superior evaluations in pre-purchase scenarios, especially for promotion focused consumers …