The Use of Pricing Information in Service Advertisements

Abstract

Pricing tactics used by service providers are vital to service marketing strategy. Moreover, the inclusion of those pricing tactics in marketing communications may provide critical information cues to a consumer involved in the service decision process. The current study uses content analysis to examine the use of four different pricing tactics in retail vs. professional service advertisements. In particular, the following four pricing cues were investigated: (1) actual service price, (2) price discounts/savings, (3) reference prices and (4) odd prices. Results indicate that retail services are far more likely to provide pricing information in their advertisements than are professional services. Additionally, retail service providers use other pricing tactics more readily than professional service providers. Implications of our findings are offered.