• Journal of Global Scholars of Marketing Science
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• v.15 no.2
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• pp.183-201
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• 2005

The lowest price guarantee policy or price-matching guarantee is the pricing policy that promises to compensate more than the price difference if a consumer finds a lower price for the identical model he or she purchased and submits a certain proof. Most of Korean large discount stores emphasize their competitive price level by adopting the lowest price guarantee policy so that the entire Korean distribution industry is deeply influenced by the policy. The article is the study regarding the effects of the lowest price guarantee policy in Korean unique industry environments. The study investigated the effects of the policy on consumers' preferences of stores. By using the conjoint measurement model, it identified the main effects and interaction effects between the policy and other independent variables. The results showed the significant effects of the policy on consumers' preference of stores and identified the interaction effects between the distance from the residence and the policy, and between overall store price level and the policy.