Effects of Expiration Date-Based Pricing on Brand Image Perceptions

Tsiros, Michael and Carrie Heilman (2005), "The Effect of Expiration Dates and Perceived Risks on Purchasing Behavior in Grocery Store Perishable Categories," Journal of Marketing, 69 (2), 114-129.

Leeds University Business School Working Paper Forthcoming

Posted: 13 Apr 2016

See all articles by Aristeidis Theotokis

Aristeidis Theotokis

Leeds University Business School; Athens University of Economics and Business, Department of Management Science and Technology

Katerina Pramatari

Athens University of Economics and Business - Department of Management Science and Technology

Michael Tsiros

University of Miami - Department of Marketing

Date Written: April 11, 2016

Abstract

Expiration date-based pricing (EDBP) occurs when a grocery retailer reduces the price of a perishable product according to its remaining shelf life. While, conventional wisdom suggests that this practice leads to negative consumer evaluations of brand quality, a series of field experiments reveal negative effects on brand quality perceptions only among loyal consumers and those who perceive low risk associated with perishables. The effect is also mediated by consumer distrust (Study 1). In addition, EDBP has no effect on brand quality image if consumers are already familiar with this pricing practice (Study 2), and it may even generate positive consumer evaluations when framed as a cause-related marketing activity to reduce waste (Study 3). Additional evidence indicates that psychological contract violation perceptions provide the underlying mechanism for explaining consumer responses to EDBP (Study 4). This article ends with an agenda for further research and implications for retail practice.

Suggested Citation

Theotokis, Aristeidis and Pramatari, Katerina and Tsiros, Michael, Effects of Expiration Date-Based Pricing on Brand Image Perceptions (April 11, 2016). Tsiros, Michael and Carrie Heilman (2005), "The Effect of Expiration Dates and Perceived Risks on Purchasing Behavior in Grocery Store Perishable Categories," Journal of Marketing, 69 (2), 114-129.; Leeds University Business School Working Paper Forthcoming. Available at SSRN: https://ssrn.com/abstract=2763118

Aristeidis Theotokis

Leeds University Business School ( email )

Leeds LS2 9JT
United Kingdom

Athens University of Economics and Business, Department of Management Science and Technology ( email )

76 Patission Street
Athens, 104 34
Greece

Katerina Pramatari

Athens University of Economics and Business - Department of Management Science and Technology ( email )

Athens GR-11362
Greece
+30 210 8203663 (Phone)
+30 219 8203664 (Fax)

HOME PAGE: http://www.eltrun.aueb.gr

Michael Tsiros (Contact Author)

University of Miami - Department of Marketing ( email )

United States

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