Prior research indicates that the effects of price-cue
information on consumer responses are contingent on
contextual cues such as store images (Gupta and Cooper
1992; Olson 1977). Lichtenstein and Bearden (1989) proposed that the price promotion practices of a retailer are
important in the formation of consumers’ price standards
and perceptions toward retail stores. For instance, due to
the high credibility and low frequency of discount activities for high-image stores, as opposed to low-image stores,
Gupta and Cooper (1992) proposed that changes in purchase
intentions due to price promotions will be greater for highimage retail stores than for low-image stores. Yoon, Oh,
and Song (2011) also indicated that store images moderate
the effects of consumers’ responses to price (versus quality) promotions. In a similar vein, store images should be
an important contextual variable that affects consumers’
responses to the OSPI. Positive store images convey a good
shopping environment, atmosphere, and services, as well as
high product quality perceptions. A high-image store gives
credibility to the products being offered at retail stores so
that the consumers perceive more tangible and intangible
benefits from the retail store. Thus, it is expected that
the positive effect of the OSPI on consumers’ repurchase
intentions will be enhanced when store images are high.
Hypothesis 7 is formulated as follows:
Prior research indicates that the effects of price-cue
information on consumer responses are contingent on
contextual cues such as store images (Gupta and Cooper
1992; Olson 1977). Lichtenstein and Bearden (1989) proposed that the price promotion practices of a retailer are
important in the formation of consumers’ price standards
and perceptions toward retail stores. For instance, due to
the high credibility and low frequency of discount activities for high-image stores, as opposed to low-image stores,
Gupta and Cooper (1992) proposed that changes in purchase
intentions due to price promotions will be greater for highimage retail stores than for low-image stores. Yoon, Oh,
and Song (2011) also indicated that store images moderate
the effects of consumers’ responses to price (versus quality) promotions. In a similar vein, store images should be
an important contextual variable that affects consumers’
responses to the OSPI. Positive store images convey a good
shopping environment, atmosphere, and services, as well as
high product quality perceptions. A high-image store gives
credibility to the products being offered at retail stores so
that the consumers perceive more tangible and intangible
benefits from the retail store. Thus, it is expected that
the positive effect of the OSPI on consumers’ repurchase
intentions will be enhanced when store images are high.
Hypothesis 7 is formulated as follows:
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