Comparative Price Advertising: Informative or Deceptive?

Dhruv Grewal · Larry D. Compeau

67 citations0/0 files storedJournal of Public Policy & Marketing

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Consumer Market Behavior and Pricing Marketing and Advertising Strategies Merger and Competition Analysis

Abstract

An issue currently generating considerable debate is the increasing use of the comparative price format in advertising. In this paper, reviews of comparative price advertising literature and Federal Trade Commission (FTC) guidelines are integrated to discuss whether comparative price advertisements are informative or deceptive. Recent court cases relevant to comparative price advertising are also discussed. The central focus of the paper is to articulate the state of knowledge regarding comparative price advertising and to assess its potential for being informative or deceptive using an examination of relevant literature and public policy. Recommendations regarding comparative price advertising for public policy makers, managers, and researchers are developed.

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References

1988Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence 2025Advances in Consumer Research 1991Effects of Price, Brand, and Store Information on Buyers' Product Evaluations 1961The Economics of Information 1985Mental Accounting and Consumer Choice 2008Mental Accounting and Consumer Choice 1976The Economics of Information 1980Pricing: Making Profitable Decisions

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1998The Price Is Right...or is it? Demographic and category effects on consumer price knowledge 2008The effects of reference prices on bidding behavior in interactive pricing mechanisms 2003Using invoice price information to frame advertised offers 1999Consumer Evaluation of Reference Price Advertisements: Effects of Other Brands’ Prices and Semantic Cues 2013Effectiveness of Exaggerated Advertised Reference Prices: The Role of Decision Time Pressure 2020Consumer Protection on Kickstarter

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