Fogelman College of Business and Economics
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Fogelman Professor and Student publishes a paper on Pricing in Journal of Retailing

For release:  November 28, 2012

Balaji Krishnan, Associate Professor of the Department of Marketing & Supply Chain Management in the Fogelman College of Business & Economics, along with Subhash Jha, a visiting scholar from IBS Hyderabad and Sujay Dutta, Associate Professor of Marketing at Wayne State University, Detroit, MI, have a forthcoming article on pricing titled "Effectiveness of Exaggerated Advertised Reference PRices:  The Role of Decision Time Pressure," in the Journal of Retailing.
In this paper they argue that there is a prevalence of exaggerated discounts such as "Upto 70% off" in retail ads.  This leads to misleading consumers and making them vulnerable to deceptive advertising.  This paper demonstrates that such exaggerated discounts are more effective in influencing consumers' perceptions of retail offers when they feel time pressure.  Further, it also demonstrates that even when advertisers offer such discounts frequently, the consumers' are more likely to purchase products if they are presented with a time pressure to make buying decisions. 

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Last Updated: 11/28/12