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My Simulated Store
OPTIMAL STIMULATION LEVEL AS A MODERATOR OF
"HIGH-LOW" AND EDLP PRICING EFFECTIVENESS
by
Lars Erik Perner
____
A Dissertation Presented to the
FACULTY OF THE GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
DOCTOR OF PHILOSOPHY
(Business Administration)
May 1998
Copyright 1998 Lars Erik Perner
Dedication
To my mother, who always encouraged me in whatever I chose to
do.
Acknowledgements
I would like to acknowledge the members of my committee, Drs. Michael Kamins,
Valerie Folkes, Dennis Rook, and Michael Cody, as well as Drs. Rita Wheat and
Jeff Inman, who sat on the committee prior to their departure from the
University of Southern California .
Contents
Dedication ii
Acknowledgements iii
List of Tables vii
List of. Figures viii
Abstract 1
Chapter
1 Introduction and Literature
Review 2
1.1 The Consumer and the Shopping Experience 2
1.2 Shopping Motives 3
1.2.1 Hedonic Shopping Motives 3
1.2.2 Ego-Expressive Shopping Motives 5
1.2.3 Hedonic Shopping and the Retail Price Environment 6
1.3 Consumer Risk Reactions and Approaches to Retail Outlet Evaluation 10
1.3.1 The rational economic perspective 10
1.3.2 Prospect Theory 12
1.4 Consumer optimal stimulation levels (OSLs) and Price Risk
Attractiveness 17
2 Hypotheses 25
2.1 Hypotheses 1a through 1e 25
2.2 Hypothesis 2 26
2.3 Hypothesis 3 27
2.4 Hypotheses 4a and 4b 28
3 Method for Study 1: A
Panel Study to Assess the Relationship Between Price Environment Evaluation and
OSL 31
3.1 Research Sequence 31
3.2 Study 1 31
3.3 Measures 34
3.3.1 Shopping Pleasure 35
3.3.2 Attitudinal Evaluation 35
3.3.3 Overall Evaluation of the Store 35
3.3.4 Value for Money Received Paid 35
3.3.5 Perceived Arousal Associated with Store Environment
(manipulation check) 36
3.3.6 Optimal Stimulation Level 37
4 Results of Study 1
40
4.1 Reliabilities 40
4.2 Manipulation checks 42
4.3 Results 42
4.4 Discussion 45
5 Method
for Study 2: A Laboratory Study to Assess the Relationship Between Price
Environment Evaluation and OSL 48
5.1 Pretest 48
5.2 Experimental Design 50
5.3 Subjects 50
5.4 Procedure 51
5.4.1 Experimental Manipulations 51
5.4.2 Counterbalance of Items 53
5.43 Alternate Source of Stimulation 56
5.5 Evaluation of Shopping Experience 57
5.5.1 Value received in store 57
5.5.2 Attitude toward the store 57
5.5.3 Repurchase propensity 57
5.6 Optimal Stimulation Level 57
5.7 Observed measures 58
5.7.1 Time Spent in the Store 58
5.7.2 Number of Items Purchased 58
5.7.3 Money Spent in the Store 58
6 Results of Study 2 59
6.1 Reliabilities 59
6.2 Manipulation Checks 60
6.3 Results 60
6.4 Discussion 65
7 Summary and Conclusions 68
7.1 Overview of Findings 68
7.2 Lack of Support for the Value Hypothesis 68
7.3 Reasons for the Conflicting Results of the Two Studies 70
7.4 Lack of Support for the Predicted Results for low OSL Subjects 72
7.5 Managerial Implications 73
7.6 Implications for Future Research 75
References 81
Appendices
Retailer Pricing Patterns 88
Panel Survey 92
Postexperimental Questionnaire for Study 2 98
List of Tables
|
1 |
Predictions of Prospect Theory,
Classical Economic "Rational Man," and OSL Hypotheses on Price
Environment Preference |
16 |
|
2 |
Selected Previous Consumer
Research on OSL |
20 |
|
3 |
Items Used to Measure Shopping
Pleasure –Study 1 |
35 |
|
4 |
Items Used to Measure
Attitudinal Evaluation of the Store-Study 1 |
35 |
|
5 |
Items Used to Measure Perceived
Value Received for Money Paid- Study 1 |
36 |
|
6 |
Items Used to Measure Perceived
Arousal Associated with Store Environment-Study 1 |
36 |
|
7 |
Reliabilities of Independent
Measures-Study 1 |
40 |
|
8 |
Mean Values of Dependent
Variables by Condition-Study 1 |
43 |
|
9 |
Subject Mean OSL Scores by Store
Choice-Study 1 |
43 |
|
10 |
Observed Retail Prices of
Selected Items-Study 2 |
49 |
|
11 |
EDLP, Sale, and Non-Sale
Prices-Study 2 |
55 |
|
12 |
Items Used to Measure Attitude
Toward the Store-Study 2 |
57 |
|
13 |
Items Used to Measure Repurchase
Propensity-Study 2 |
58 |
|
14 |
Reliabilities of Dependent and
Manipulation Check Measures-Study 2 |
59 |
|
15 |
Means of Dependent Variables by
Condition-Full Factorial-Study 2 |
62 |
|
16 |
Means by Condition-2x2 Partial
Factorial of OSL by Price Environment Only-Study 2 |
63 |
List of Figures
| 1 |
Hypothesized Store Evaluation
Under No Additional Source of Stimulation |
29 |
| 2 |
Hypothesized Store Evaluation
Under Additional Source of Stimulation |
30 |
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