Internal reference price response across store formats

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet


  • Ossama Elshiewy
  • Anne O. Peschel

Reference price models have a long tradition in marketing and consumer research. Pricing strategies can utilize consumer response to gains and losses relative to internal reference prices, which are price expectations developed from past-observed prices. Consequently, many previous studies have been devoted to analyzing differences in internal reference price response across product categories and consumer characteristics. However, knowledge about internal reference price response across different store formats is missing. Our study aims to fill this research gap. To do so, we estimate a reference price model for the same set of brands and the same sample of consumers across two store formats (discount chain vs. supermarket chain). The prices for the brands in our model are similar across store formats. Results from our proposed model show that the same consumers are loss-averse at the discount chain while gain-seeking at the supermarket chain. Predicted by previous literature, we attribute the difference in internal reference price response to the different price image of the store formats. Overall, our research contributes to the reference price literature and provides important implications for pricing strategies at stores with different price image.

ZeitschriftJournal of Retailing
Seiten (von - bis)496-509
Anzahl der Seiten14
PublikationsstatusErschienen - 10.2022
Extern publiziertJa

Bibliographische Notiz

Funding Information:
The authors would like to thank the editor and the review team for their constructive comments during the review process. The authors also thank Ryan Hamilton, Hans Jørn Juhl, Joachim Scholderer, Oleg Urminsky, and Stephan Zielke for their helpful comments on earlier versions of this paper. Special thanks goes to Daniel Guhl for his advice on how to speed up our parameter estimation. Lastly, the authors are very thankful to the retailers who contributed to making the purchase data available. Both authors confirm that there are no conflicts of interest.

Publisher Copyright:
© 2021 The Author(s)