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Price strategies and the role of congruence

Thiel, O.C. (2009) Price strategies and the role of congruence.

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Abstract:In the present study we examine price reductions of 10% and 30 % and the role of congruence between the consumer and brand personality on pleasure and the perception of product quality. In our first hypothesis we state that the greater the congruence between the consumer personality and the brand personality in their trait excitement/ extraversion, the greater will be the pleasure response of consumers. The second hypothesis proposes that the greater the congruence of the trait extraversion/ excitement between consumer and brand the better will be the evaluation of the product quality. The last hypothesis consists of two parts. The first part of the last hypothesis stated that the effect of price strategy on pleasure is more evident under conditions of incongruence than under conditions of congruence. The second part is the hypothesis that the effect of price strategy on the perceived product quality is more evident under conditions of incongruence than under conditions of congruence. The study used a 2x3 design. We found via linear regression support for the first hypothesis. Thus, there was a significant effect of the strength of congruence on pleasure. There was also significant support for a main effect of price reduction on the perceived product quality.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:77 psychology
Programme:Psychology BSc (56604)
Link to this item:http://purl.utwente.nl/essays/59664
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