RETAIL SALE ADVERTISING, PERCEIVED RETAILER CREDIBILITY, AND PRICE RATIONALE

Retailers often advertise products at ''reduced'' prices. Past researc h has suggested this is an effective way to appeal to consumers; but r ecent evidence indicates growing consumer mistrust of this type of adv ertising claim. This paper presents an experiment that suggests consum er perceptions of retail price reductions may depend on the rationale the retailer provides for the reductions. Directions for future resear ch are discussed.