Comparative Price Advertising: An Integrative Review

Abstract

After two decades of research, public policymakers, researchers, and managers still have questions regarding the use, abuse, and overall effectiveness of comparative price advertising. Using an integrative review of the literature as a basis, the authors examine the state of substantive knowledge regarding comparative price advertising effects. They use meta-analytical procedures to assess the effects of (1) presence of an advertised reference price, (2) advertised reference price levels, and (3) advertised sale price levels on consumers’ internal reference price, perceived value, price offer believability, purchase likelihood, and search intentions. Evidence indicates that comparative price advertising is a powerful advertising tool, with a strong opportunity for deception, that requires careful management and monitoring.