The Influence of Department Stores’ Price Promotion Strategy Toward Consumers’ Repurchase Intentions: A Moderation Model of Perceived Risks

Abstract

Taiwan’s retailing industry faces fierce competition, and there are practical gaps regarding price promotion and repurchase intention. Therefore, the purpose of this study is to examine the impact of department stores’ price promotion strategies on consumers’ repurchase intentions and what the moderation effect of perceived risks has on the relationship between price promotion and repurchase intention. The results show (1) the consistency, presentation, and information content of price promotion on the repurchase intentions have a positive and significant impact, and (2) the perceived risks would weaken the relationship of the price promotion and repurchase intention. Therefore, this study proposes related suggestions of business management strategy regarding the establishment of price consistency that customers can trust in when shopping at domestic department stores; to use different price promotion presentation methods to lock in the repurchase behavior of different customer groups; to fade the information contents of price promotions for price-oriented services; and to reduce customers’ perceived risk.