Purpose – The purpose of this paper is to review the research demonstrating the consumer's erroneous and unfounded perceptions of prices, which can have severe negative consequences on consumer welfare. Design/methodology/approach – This is a review paper of previous research on the...

The use of advertised reference price promotions, such as “regularly $119.99, sale price $39.99,” is ubiquitous in the marketplace. Thirty years of research supports the conclusion that advertised reference prices (e.g., $119.99) exert an influence on consumers’ responses to offer prices...

The authors test a value chain model entailing a progression of influence from retail employee job perceptions - retail employee job performances - customer evaluations - customer spending and comparable store sales growth. The authors test the model using three matched samples of 1,615 retail...