The effects of contextual cues on consumers' perceptions of comparative price advertisments

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Virginia Tech

The purpose of this study is to understand Korean consumers' perceptual processes induced by comparative price advertisements. While controlling for intrinsic product cue effects, this study examines the joint effects of extrinsic cues, such as comparative price (regular price /sale price), brand name, country-of-manufacture, and retailer name, on a consumer's perception of a product's price and quality.

In examining the effects of advertising contextual cues, this study incorporates consumer perceptual processes, the processes through which the external cues are perceived and compared to or moderated by other variables. The perceptual structure is based on relevant theories and accumulated knowledge from research in this area. Specially adapted theories for this study are the adaptation-level theory, the message learning theory, and the transaction utility theory.