A Consumer Perspective on Price-Matching Refund Policies : Effect on Price Perceptions and Search Behavior

  title={A Consumer Perspective on Price-Matching Refund Policies : Effect on Price Perceptions and Search Behavior},
  author={Joydeep Srivastava and Nicholas H. Lurie},
Although price-matching refund policies are common in many retail environments, the impact of such policies on consumers has largely been ignored. This article reports the results of three studies that examine price-matching policies from a consumer perspective. Study 1 shows that consumers perceive price-matching policies as signals of low store prices and that the presence of a refund increases the likelihood of discontinuing price search. Contrary to the predictions based on signaling theory… CONTINUE READING

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