Discount or Disclosure? Investigating Effective Price Promotion Strategies of Ethical Fashion Brands through the Elaboration Likelihood Model
Abstract
This study aimed to explore perceived price fairness to the ‘discount’ and ‘disclosure’ strategies of ethical fashion brands with an experimental design. Then, built on the Elaboration Likelihood Model (ELM), we sought to determine how this perception leads to purchase intentions through central and peripheral routes. A total of 436 Korean consumers participated in the experiment, and the results of ANOVA confirmed that the extent of price fairness perception was different by the price promotion conditions. Notably, disclosing conventional markup along with the firm’s markup showed the same effect on price fairness perceptions as that of a 70% discount. The SEM results revealed that perceived price fairness increased moral equity, which in turn enhanced purchase intentions. Perceived price fairness also promoted purchase intentions directly. The findings empirically confirmed the process of persuasion through the central and peripheral routes, following ELM, as well as they provided affluent managerial implications.
Keywords: price promotion strategies, price fairness, moral equity, purchase intention
How to Cite:
Jung, S. & Kim, M., (2024) “Discount or Disclosure? Investigating Effective Price Promotion Strategies of Ethical Fashion Brands through the Elaboration Likelihood Model”, International Textile and Apparel Association Annual Conference Proceedings 80(1). doi: https://doi.org/10.31274/itaa.17557