An Investigation of Individual Responses to Tensile Price Claims

Abstract

This article describes the results of two studies investigating the effects of tensile price claims (e.g., “save up to 50%”) on consumers' perceptions of offer value, information value, and price reduction. The findings suggest that the use of tensile claims in conjunction with large advertised price reductions may result in decreased perceived offer value and substantial discounting of expected price reductions by the consumer.