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Measurement of retailers' price images with a multiple-item scale

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Abstract:

Because price is a dominant marketing variable in many retail sectors, price controlling becomes a crucial task for companies acting in these markets. A key problem is to measure how customers perceive different pricing activities, and how these perceptions are arranged in the customers' minds as price images. The contribution of this article is to develop an item scale that covers the different dimensions of the price image construct. An analysis of the underlying factor structure of price image leads to seven dimensions in the first stage. For three of these dimensions, convergent validity of the corresponding measurement models is proved. An analysis of the predictive power of the different image dimensions confirms significant impacts on price attitude and behavioural intentions.

Keywords: Price image; price perception; retail pricing; scale development; structural equation model

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/09593960600696990

Affiliations: Georg-August-Universität Göttingen, Institut für Marketing und Handel, Nikolausberger Weg 23, D-37073, Göttingen, Germany

Publication date: July 1, 2006

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