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Darren Dahl (Editor in Chief)Eileen FischerGita JoharVicki Morwitz

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Promotion Signal: Proxy for a Price Cut?

J. Jeffrey Inman, Leigh McAlister, Wayne D. Hoyer
DOI: http://dx.doi.org/10.1086/208538 74-81 First published online: 1 June 1990

Abstract

Evidence suggests that some consumers react to promotion signals without considering relative price information. We adopt Petty and Cacioppo's Elaboration Likelihood Model (ELM) to explain this behavior in terms of the ELM's peripheral route to persuasion in which the promotion signal is taken as a cue for a price cut. Experimental results show that low need for cognition individuals react to the simple presence of a promotion signal whether or not the price of the promoted brand is reduced, but that high need for cognition individuals react to a promotion signal only when it is accompanied by a substantive price reduction.

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