| Summary: | Abstract
Reference pricing is a common promotional activity in almost every contemporary business sector employed by marketers and normally aimed at increasing consumers' perceived product values and their possibility of purchasing. Reference prices are the standards against which the purchase price of a product is judged.
Since both the external and internal reference prices have been extensively researched by scholars of marketing in western countries such as the US and UK, this paper focus on consumers reactions to comparative price advertising in the Chinese market which is most attractive emerging market in the world.
The research adopts three independent variables: internal reference price, the presence of time limit restriction and the presence of former price (ARP), among which the IRP is a covariate variable. Five dependent variables are measured in the research: consumers perceived believability, transaction value, acquisition value, purchase intention and search intention.
This paper aims to answer the three main questions:
1. Whether or not Chinese Consumers use the internal reference price (IRP) in their evaluation of a comparative price promotion?
2. How does the presence of time limit affect Chinese consumers perception of price offers?
3. How does the presence of ARP affect Chinese consumers perception of price offers?
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