Page 910 - MARSIUM'21 COMP OF PAPER

911 Tan Yi Ting & Dr Adaviah (2022)
There There are 5 hypotheses proposed in this study to identify the relationship between price history,
store visit history, customer characteristics on internal reference price and store environment, product
category on external reference price toward customer purchase intention.

2.2.1 INTERNAL REFERENCE PRICE

2.2.1.1 Price History

Wenzel and Martin’s (2011) research identified that price expectation and customer purchase intention
are significantly influenced by trend, range and variance of past price. Price history involves the last
price paid or “price image” that might influence how the customers act to the price change. For internal
reference price customers, they will remember the past price and use that information to monitor the
pricing environment and make the purchase decision based on their adaption-level. There is the direct
relationship between changes in the environment and customers’ behavior. This study predicts price
history may influence internal reference price. Thus, this study posits:
H1: Price history will positively and significantly influence customer purchase intention.

2.2.1.2 Store Visit History

Effect of repetition takes place on the frequent visit to a particular store. Repetition tends to increase
consumers’ confidence in price knowledge and price information. Bell and Bucklin (1996) suggested
that consumers’ familiarity interacts with store visits on a given trip or the store visit history of the
consumer. The interactions of reference price effects are shown by the generally higher effects on the
purchase probability more familiar than unfamiliar stores. Moreover, frequent buyers are more
confident than infrequent buyers about their estimates of regular prices (Urbany and Dickson 1991),
and they take less time than infrequent buyers to evaluate price (Dickson and Sawyer 1990). Repetition
leads to greater confidence and has also found empirical support in the psychology literature (Dewhurst
and Anderson 1999; Koriat 1993; Zaragoza and Mitchell 1996; also see Menon And Raghubir 2003).
Internal reference price is a malleable construct that is sensitive to phenomenological experiences, thus
it will be affected by this repetition-induced confidence. This study predicts store visit history may
influence internal reference price. Thus, this study posits:
H2: Store visit history will positively and significantly influence customer purchase intention.

2.2.1.3 Customer Characteristics

Through Moon, Russell and Duvvuri’s research (2006), consumers who have brand knowledge can
access an associative network memory model held in the consumer’s mind, which contains information
linked to the deep memory about the brand and its meaning. This knowledge is conceptualized
according to terms of two components: brand awareness and brand image. The higher the levels of
brand awareness and brand image the higher the probability of brand choice and greater consumer
loyalty. Brand loyalty is formed when favorable beliefs and attitudes for the brand are demonstrated
in repeat buying behavior (Keller, 1993). This study predicts customer characteristics may influence
internal reference price. Thus, this study posits:
H3: Customer characteristics will positively and significantly influence customer purchase
intention.

2.2.2 EXTERNAL REFERENCE PRICE

2.2.2.1 Store Environment

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