“What’s new, guys?” The effects of price tag presentation on the purchase intention of new products

Abstract

The present study investigates the influence of price tag presentation on the purchase intention of new products available at a retail store. A 2 (Price tag: present or absent) x 2 (Informational tag: present or absent) design between-subjects experiment was conducted with 195 participants. Results show that purchase intention is higher for products marked with a “NEW” informational tag when it is presented together with the price tag, giving consumers an idea that a novel product is being sold. Curiously, if the product is not marketed with any informational tag (e.g., “NEW”), the lack of price presentation increases purchase intention. Besides that, when people consider the product ‘more or less’ expensive or expensive, the informational tag “NEW” yields a higher purchase intention compared to the lack of the informational tag