The effect of cross-channel price dis/parity on ethicality evaluations and purchase intent: The moderating role of price frame

Sunmee Choi, Anna S. Mattila, Heungsoo Park, Seongho Kang

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Using a scenario-based survey with a factorial between-subject experimental design, this study examines the effect of price dis/parity across multiple channels of distribution on customers' ethicality evaluations and purchase intent, with the focus on the moderating role of price frame. Results show that when the varying prices of the disparity policy were all lower than or equal to the uniform price of the parity policy, consumers did not evaluate the disparity policy as significantly less ethical than the parity policy, and were more likely to purchase from the firm with the disparity policy. However, when at least one of the varying prices of the disparity policy was higher than the uniform price of the parity policy, they evaluated the disparity policy as less ethical, and, therefore, were more likely to purchase from the firm with the parity policy, despite price incentives offered by the disparity policy. This finding suggests that the success of a cross-channel price disparity policy depends on the price frame.

Original languageEnglish
Pages (from-to)131-147
Number of pages17
JournalJournal of Marketing Channels
Volume16
Issue number2
DOIs
Publication statusPublished - 2009 Apr 1

All Science Journal Classification (ASJC) codes

  • Marketing

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