The effects of price-matching guarantees on consumer response in an online retail context

World Congress on Industrial Automation

July 20-22, 2015 San Francisco, USA

Hsin-Hui Lin

Posters-Accepted Abstracts: Adv Robot Autom

Abstract :

Purpose: The main purpose of this study is to investigate the effects of three price-matching guarantee variables, including refund depth, refund period and competitive scope, on consumer response; the moderating role of consumer search costs is also examined. Design/Methodology/Approach: This study uses a scenario simulation method with a 2x2x2 factorial design to test the research model and hypotheses. Findings: The results indicate that refund depth has a significant effect on price perception and purchase intention, while competitive scope has a significant effect on purchase intention. In addition, the effects of both refund depth and competitive scope on price perception are moderated by consumer search costs. Originality/Value: This study is a pioneering effort to explore the effects of price-matching guarantees variables on consumer response in the context of online retailing. These findings provide several important theoretical and practical implications for the price-matching guarantee strategy of online retailing.