Lowest Price Guarantee Strategy On Consumer Evaluation And Purchase Intention - The Reference Price, The Price Cut Of The Regulatory Role

Over the years, there are many retailers that introduce the policy of Lowest Price Guarantee such as Watson's, Wal-Mart, Carrefour, etc. they claim that the prices of their products are at least equal to its competitors'. The consumers could request refund if they discover the lower price of the similar products in other retailers, therefore, this paper mainly focuses on the influence of Lowest Price Guarantee on comsumer purchase intention in the realistic life and consumers' evaluation on retailers. Meanwhile, we also find out that the reference price and range of price-reduction have regulatory effects on the Lowest Price Guarantee Policy.Lowest Price Guarantee,as a kind of price singal, makes a promise to consumers that the products are lowest compared to its competitors. if the consumers find the lower price in other stores, the retailer will make a compensation for the consumers. But the consumers' dissatisfaction may not be compensated. In this paper, we research the different responses from consumers on different kinds of lowest price guarantee policy. These responses might cause different evaluation on the retailers when the retailers break their promises. Based on the experimental design and survey methods, we use the overall store image and purchase intention questionnaire designed for 196 college students. And the questionnaire analysis methods, including multivariate analysis of variance and univariate analysis of variance, are used to find out the relationship between the independent variable and dependent variable. Therefore, this paper attempts to explain the consumers' evaluation on different promotion policies in the domestic large chain supermarket and analyzes the results from different promotion policies or their combinations.By having verified all kinds of hypothesis, results are below:1, the Lowest Price Guarantee policy does help enhance the overall store image and improve consumers'purchase intentions significantly;2, reference price has a regulatory effect on the lowest price guarantee policy, a reasonable reference price may weaken side effects of the lowest price guarantee policy; 3, the range of price-cut also has a regulatory effect on the lowest price guarantee policy, the high discount rate may make the consumers ignore the lowest price guarantee policy, however, the medium discount rate has a significant influence on the lowest price guarantee policy;...