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.
Posted: 13 Apr 2016
Date Written: April 11, 2016
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.
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