| Reference prices are frequently observed in retail stores and in advertisements. A reference price is a higher comparison price mentioned in an offer to consumers (e.g., regularly ;The present study introduces the concepts of reference quality and reference price-quality claims. Propositions were developed based upon utility, adaptation-level, and assimilation-contrast theories as well as from existing reference price literature. In addition, unlike other studies, the research investigated the impact of exposure to the reference price and/or reference quality claims on consumers' purchase evaluations of a subsequent brand.;A 4 (reference price) x 4 (reference quality) x 2 (product) x 2 (brand) factorial design was employed. Subjects were exposed to the prices and/or qualities via print ads. Their internal reference points and purchase evaluations were ascertained via questionnaire. Subjects were then exposed to a subsequent print ad featuring a different brand for the same product. Only offering price and offering quality were provided in this subsequent ad. Subjects' ad and brand evaluations were again assessed via questionnaire.;The results revealed that subjects exposed to stronger reference claims, price or quality, adjusted their internal reference points in the direction of the claims. However, subjects discounted the stronger reference claims more than the weaker reference claims. Their purchase evaluations were also affected by the price and quality reference claims. Generally, subjects exposed to stronger claims had more favorable attitudes-toward-the-offer. No reference price-reference quality associations were found for reference claims. Finally, reference claims for one brand influenced subjects' attitudes toward alternative brands. The findings are discussed from both theoretical and managerial viewpoints. |
