Effects of money-back and low-price guarantees on consumer behavior state of the art and future research perspectives

Abstract

Money-back guarantees (MBGs) and low-price guarantees (LPGs) are frequently implemented in retailing practice to positively influence consumer behavior. In this literature review 28 MBG and 30 LPG studies are systemized and discussed. While both a behavioral and an economic research stream exist, the focus of this review is on the effects of MBGs and LPGs on consumer behavior. Furthermore, this literature review provides some avenues for future MBG and LPG research and offers implications for retailing practice.