Price guarantee advertising believability drives consumer trust and repurchase by 82%
The perceived credibility of price guarantee advertising significantly influences consumer trust, satisfaction, and future purchasing behaviour.
Journal of Retailing and Consumer Services · 2025
Key Findings
- 01Advertising believability significantly enhances consumer trust.
- 02Trust mediates the relationship between advertising believability and satisfaction/repurchase intentions.
- 03Automatic Price-Adjustment Promises were perceived as more credible than Price-Beating Guarantees.
- 04Price-Beating Guarantees led to stronger behavioural outcomes when trust was established.
Application
Design takeaway
Focus on making price guarantee claims as believable as possible, as this directly translates to increased consumer trust and loyalty.
How to apply
When designing promotional materials or loyalty programs that include price guarantees, ensure the language and structure of the guarantee are easily understood and perceived as achievable.
Project actions
- 01When researching consumer behaviour, consider how the presentation of information affects trust.
- 02Explore different communication strategies for similar product features to see which is perceived as more credible.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Large sample size from a real-world retail setting.
- +Use of a quasi-longitudinal design to capture pre- and post-purchase responses.
- +Application of established theories (Signalling Theory, ECT) and robust statistical modelling (SEM).
Limitations
Generalizing findings from a specific retailer's loyalty program to all consumer markets might be difficult. The study focused on price guarantees, so results may not apply to other types of advertising claims.
Reliability & validity
The use of structural equation modelling and a large sample size enhances the reliability and validity of the findings. The quasi-longitudinal design also strengthens validity by capturing changes over time.
Think critically
To what extent does the perceived effort required by the consumer to verify or utilize a price guarantee influence its believability and effectiveness?
Design Principles
"Marketing communications should be designed for maximum perceived credibility to foster consumer trust and drive desired behaviours."
Understanding how consumers evaluate price guarantees is crucial for retailers aiming to build lasting customer relationships. By focusing on the believability of these promises, businesses can more effectively foster trust, leading to increased customer satisfaction and a higher likelihood of repeat purchases.
What This Means for Your Design
If a shop's promise about matching prices seems more believable, customers will trust the shop more, be happier, and buy again. Automatic price matching promises are easier to believe, but beating prices works better if customers already trust the shop.
How to use in your project
- 1.Reference this study when discussing how the believability of a design feature or marketing claim impacts user perception and behaviour in your design project.
Add to My Project
Quick Cite
(2025). A dual-theory examination of price guarantee advertising believability and its impact on consumer trust, satisfaction, and repurchase in retail. Journal of Retailing and Consumer Services. https://doi.org/10.1016/j.jretconser.2025.104557 Retrieved from https://designdex.org/study/6ec7be2c-930e-4e3d-afed-71af81e05fda/price-guarantee-advertising-believability-drives-consumer-trust-and-repurchase-by-82
Paragraph starter
This research highlights that the perceived believability of a marketing claim, such as a price guarantee, is a critical factor in building consumer trust, which in turn drives satisfaction and repurchase intentions. The study found that clear and credible promises, like automatic price adjustments, are more readily believed, while more complex guarantees can be effective if initial trust is established.
Source
Journal of Retailing and Consumer Services
A dual-theory examination of price guarantee advertising believability and its impact on consumer trust, satisfaction, and repurchase in retail
journal · 2025
View sourceQuestions about this research
- What does the research say about price guarantee advertising believability drives consumer trust and repurchase by 82%?
- Focus on making price guarantee claims as believable as possible, as this directly translates to increased consumer trust and loyalty. Evidence: Journal of Retailing and Consumer Services (2025).
- Why does "Price guarantee advertising believability drives consumer trust and repurchase by 82%" matter for design?
- Understanding how consumers evaluate price guarantees is crucial for retailers aiming to build lasting customer relationships. By focusing on the believability of these promises, businesses can more effectively foster trust, leading to increased customer satisfaction and a higher likelihood of repeat purchases.
- How can designers apply this research?
- Focus on making price guarantee claims as believable as possible, as this directly translates to increased consumer trust and loyalty.
- What were the main findings?
- Advertising believability significantly enhances consumer trust.. Trust mediates the relationship between advertising believability and satisfaction/repurchase intentions.. Automatic Price-Adjustment Promises were perceived as more credible than Price-Beating Guarantees.. Price-Beating Guarantees led to stronger behavioural outcomes when trust was established.
- What research method was used?
- Quasi-longitudinal field study using structural equation modelling. with 1219 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2025 journal from Journal of Retailing and Consumer Services.
- What should I do differently in my next project?
- When designing promotional materials or loyalty programs that include price guarantees, ensure the language and structure of the guarantee are easily understood and perceived as achievable.
- What are the limitations?
- The study was conducted with loyalty program members, which may not represent the general consumer population. The specific retailer and its market context could influence results.
- Is there evidence that price guarantee affects design outcomes?
- The study found that how believable a price guarantee is directly impacts how much a customer trusts the retailer. This trust then leads to greater satisfaction and a higher chance of the customer buying again. While automatic price adjustments were seen as more believable, price-beating guarantees were more effective Source: Journal of Retailing and Consumer Services (2025).
- Where does this consumer trust research apply?
- Retail loyalty program It sits within innovation & markets research on designdex.org.
Related research topics
price guarantee design research · evidence on price guarantee · does price guarantee improve design outcomes · consumer trust studies for designers · price guarantee and consumer trust findings · innovation & markets research evidence