Improving the Effect of Guarantees: The Role of a Retailer's Reputation

• Examines the role of synergies between guarantees and retailer reputation.
• Incongruity based on both meaning and valence is key.
• An associated guarantee is beneficial for retailers with poor reputations.

This research examines the interaction of two cues, retailer reputation and guarantees on evaluations. Extending Mandler's (1982) incongruity framework, we illustrate across three studies how moderately incongruent signals can be combined to enhance evaluations. Unique to our application of moderate incongruity, however, is the fact that guarantee cues can be incongruent with the retailer's reputation, in terms of domain (e.g., price matching guarantee (PMG) offered by provider whose reputation is based on service, not pricing) or valence (e.g., PMG offered by retailer known for carrying expensive merchandize). This dual perspective on the source of incongruity (domain or valence) is important and highlights when guarantees enhance evaluations.

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