The competitive realities of the marketplace forces retailers to consider implementing low-price guarantees. Given that retailers will use low-price guarantees, which of the multitude of guarantees should be used? This paper examines the nature of low-price guarantees from the perspective of how consumers make trade-offs in different low-price guarantee designs. Using conjoint analysis, buyers indicate their preference for different low-price guarantee designs. Not all consumers respond to low-price guarantees the same. There are several segments of consumers with regard to low-price guarantees. The study was done with young adults (MBA students) who may be more sophisticated than the population as a whole. Retailers choosing a low-price guarantee ought to understand the preferences among their customers in order to choose an optimal strategy.
Baglione, Stephen; Tucci, Louis A.; and Talaga, James A.
"Consumer Preferences Among Low-Price Guarantee Offers,"
Atlantic Marketing Journal:
1, Article 2.
Available at: http://digitalcommons.kennesaw.edu/amj/vol5/iss1/2