The influence of advertisement repetition on price image in the context of higher education services

• Published in: Journal of revenue and pricing management 2019-08, Vol.18 (4), p.342-352
• Main Authors: da Silva, Thayse Schneider, Perin, Marcelo Gattermann, Wagner, Rafael Luis, Basso, Kenny
• Format: Article
• Language: English
• Subjects: Business and Management; Discount department stores; Higher education; Home meal replacement; Pricing policies; Research Article; Supermarkets
• ISSN: 1476-6930; 1477-657X
• DOI: 10.1057/s41272-018-00175-1

Consumers often categorize companies as either cheap or expensive. This overall pricing impression is called price image. Consumers’ price image is formed during the processing of qualitative and intrinsic information, such as advertisement repetition. This study investigates the role of advertisement repetition on consumers’ price image towards a higher education institution, and the moderating role of announced discounts and the institution’s nationality. Two experimental studies found that price image follows an inverted U-shaped pattern when consumers as consumers are more exposed to a local University’s advertisement. However, when the advertisement contains an announced discount, or the University has a global brand instead of a local one, a regular U-shaped pattern is found; thus, in these cases, there is an optimal amount of advertisement exposure that generates the lowest price image. This information can be useful for Universities’ managers, as they can understand its potential students’ price expectations depending on how much they are exposed to advertisements and how the advertise is designed.