Effects of low price guarantees on consumer post-purchase search intention: The moderating roles of value consciousness and penalty level

While past research has focused on pre-purchase effects of low price guarantee (LPG), the present paper examines probable post-purchase consequences of such signals. Results of an experiment indicate that in an effort to enhance value from a purchase, consumers are more likely to engage in post-purchase search for lower prices when a purchase is made under an LPG. The experiment also indicates that presence of an LPG encourages post-purchase search intention only for consumers who are highly motivated to enhance value. Furthermore, it is seen that an LPG that offers higher refund leads to higher post-purchase search intention and this effect is also stronger for consumers with high concerns for enhancing value. The paper discusses several important implications of these findings for signaling theory and LPG-related retailing strategy.