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dc.contributor.advisorAlpert, Frank
dc.contributor.authorLowe, Benjaminen_US
dc.date.accessioned2018-01-23T02:21:30Z
dc.date.available2018-01-23T02:21:30Z
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10072/365671
dc.description.abstractThis study examines how pioneer and follower pricing strategies affect the formation and evolution of reference price perceptions in new product categories. It contributes to our understanding of pricing new products by integrating two important research streams in the field of marketing - reference price theory and the theory of pioneer brand advantage. This is the first research to address reference price effects for radically new product categories. Prior research has focused solely on products in existing categories, typically in fast moving consumer goods categories. Using three experiments to causally establish the consequences of pioneer and follower pricing strategies on consumer perceptions, three critical research issues are addressed for the first time, consistent with calls for research in the literature: 1. Which reference price do consumers utilise in new product categories? 2. What is the role of consumer confidence in reference price for new product categories? 3. How do reference price perceptions form and evolve as a result of pioneer and follower pricing strategy? In the literature, a frequently cited issue is the fragmented operationalisation of reference price perceptions. With little theory to guide researchers in terms of which measures should be used, experiment 1 provides new theory, finding as hypothesised, that fair price perceptions as opposed to expected price perceptions are more likely to be evoked by consumers for new product categories. Experiment 1 also finds that using consumers' confidence in their reference price beliefs as an additional explanatory variable, does not improve over current reference price models. Overconfidence, a robust consumer behavioural phenomenon (Alba and Hutchinson 2000), might explain this result. Prior research has made several contributions to understanding reference price perceptions in established product categories. However, not much is known about how these reference price perceptions initially form and evolve. Experiments 2 and 3 address this gap by simulating an emerging market and examining the role of pioneership in shaping reference price perceptions. Experiment 2 found the pioneer, due to its perceptual prominence, is able to define the reference price and subsequently define perceptions of value. That is, the value consumers place on a product and their intentions to purchase the product are about the same whether the pioneer follows a penetration (initial low price) or skimming (initial high price) strategy. Experiment 3 extends experiment 2 by examining what happens in the emerging market when a follower brand enters. The follower enters at a large or small discount to the pioneer, and the pioneer completes its penetration or skimming strategy, converging to a 'regular' price. As predicted, the pioneer's initial price frames subsequent price and value perceptions, signifying the importance of the pioneer as a referent brand. Lower initial prices erode value perceptions, whereas higher initial prices substantiate value perceptions. The follower's pricing strategy does not have as much influence as the pioneer's pricing strategy. Other findings from experiment 3 related to reference price theory in general. Specifically, there was strong evidence of an averaging process when forming reference prices. This adds theory to the measurement debate about operationalising reference price as some past price such as last price paid or some average of past prices. Experiment 3 also provides a further measurement contribution by supporting the use of brand specific measures of reference price, rather than category based measures. More generally, because of the causal research design, this thesis provides strong evidence of the use of reference prices in consumer decision making: a key concern emphasised by one of the area's seminal articles (i.e., Kalyanaram and Winer 1995), which stresses the need to provide evidence that consumers actually use reference prices, and not just act as if they do.en_US
dc.languageEnglishen_US
dc.publisherGriffith Universityen_US
dc.publisher.placeBrisbaneen_US
dc.rights.copyrightThe author owns the copyright in this thesis, unless stated otherwise.en_US
dc.subject.keywordsPricing strategyen_US
dc.subject.keywordsmarketingen_US
dc.subject.keywordsfair priceen_US
dc.subject.keywordsprice perceptionsen_US
dc.subject.keywordsexpected priceen_US
dc.subject.keywordsnew product categoriesen_US
dc.titlePricing Strategy and the Formation and Evolution of Reference Price Perceptions in New Product Categoriesen_US
dc.typeGriffith thesisen_US
gro.facultyGriffith Business Schoolen_US
gro.hasfulltextFull Text
dc.contributor.otheradvisorWinzar, Hume
dc.rights.accessRightsPublicen_US
gro.identifier.gurtIDgu1315958142940en_US
gro.identifier.ADTnumberadt-QGU20070221.155102en_US
gro.source.ADTshelfnoADT0483en_US
gro.source.GURTshelfnoGURTen_US
gro.thesis.degreelevelThesis (PhD Doctorate)en_US
gro.thesis.degreeprogramDoctor of Philosophy (PhD)en_US
gro.departmentGriffith Business Schoolen_US
gro.griffith.authorLowe, Benjamin


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