• Journal of Global Scholars of Marketing Science
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• v.19 no.3
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• pp.17-27
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• 2009

Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

• Journal of Korean Society of Forest Science
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• v.19 no.1
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• pp.1-23
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• 1973

The results of ground vegetation experiment conducted at completely denuded forestland in the mudstone region are summerized as follows: On the reaults of soiling quantity the effect of soiling was observed where depth of soiling over 10 cm was practiced, and a plot where treated with 15cm soiling and without fertilizer showed poor growth and it was even worser than the plot where soiling was practiced only 1 cm in thikness but applied adequate amount of fertilizers. The depth of slits between 30cm and 40cm showed no significant difference in the effect. A plot where covered with vegetation bag showed somewhat better results in seed loss and early growth but no differences observed in the fall result over the none covered plot. And then, it is recommendable to have soiling over 10cm in thikness with slit of 30cm and 30cm in depth and to apply 30 gram of fertilizer (22;22:11, 50 gram) per slit. On various soiling materials trial there were no striking differences in the effect of soiling between weathered granite soil, wheathered tuffs soil and weathered mudstone soil. In the treatment with various green materials, a plot treated with straw mat showed a significant difference at 1 percent. The results show that weathered mudstone soil is effective to use as soiling materials and straw mat treatment was better. On forest fertilization trial, in the mudstone region where red and black pine trees already existing at a rate of 2,000-3,000 trees per hectare had applied 110kg of compound fertilizers (9:12:3 and 22:22:11) per hectare basis in terms of plant nutrient. As a result, the difference in effect between the compound fertilizers was not found however the leaf color and leaf length of the fertilizer added plot showed darker and longer at 30 percent over the no fertilizer received plot. Compound fertilizers, 14:37:12 and 9:12:3 were applied to alder trees at a rate of 20 gram and 40 gram per tree in terms of plant nutrient and a remarkable growth accelerantion was observed where 40 grams of plant nutrient applied. The effect difference between the compound fertilizers was not found. On investigation of tree root elongation, forty years old red pine trees showed only 15cm tap root elongation through mudstone while black pine had 23 cm tap root elongation. The total length of supporting root elongtion of red and black pines showed 20 and 13 meters, respectively. The tap roots of Black locusts were not able to elongate through mudstone, however, the supporting roots tended to develop to the underneath of pine tree where some moisture content is available. Black locusts And grown on the residual soil of mudstone normally die between 8 to 10 years. The red pine trees show flat in tree shape while black pine had triangle in the shape. With the results it can be said that in an artificial reforestation in denuded forest land of the mudstone region the adequate slit and enough amount of fertiliizer application must be provided for the succesful performance of the program. On integrated experimental results of 1972. for the establishment of ground vegetation on the completely denuded forest land in mudstone region, soiling could be effectively practiced with weathered mudstone soil and it would not specially necessiate to have either weathered granite or tuffssoil for the soiling. And the soiling depth should be more than 10 cm in thickness. Among green materials used the straw mat proved to be the most effective reatment. Three major factors which enable to establish ground vegetation by the shortest period of time: A. Physical improvement of soil is necessary to breakdown of the horizontal cracks sushas Slit, contour line plot, seeding hole and etc., and soiling with weathered mudstone soil. B. Chemical improvement of soil: is needed sufficient amount of fertilizer application 300~400kg ha, $N+P_2O_5+K_2O$), and increased production of ground covering and expedite resolution of the vegetation (ground vegetation, fallen leaves and twigs). C. Complete establishment of the basic structure for the erosion control (Prevention of surface soil erosion)