Showrooming and morality: Price-matching policy in retailing and its managerial implications

Abstract

Purpose We are observing a significant transformation driven by the advancement of innovative technologies and their integration into consumer markets. Such developments have entailed changes to consumers' in-store shopping experiences, whereby showrooming activities have been reshaping their decision-making. Meanwhile, smart shopping affords consumers more accessible and productive decision-making, where commercial organizations facilitate timely business strategies to capture potential customers. This research draws on the innovation failure and knowledge management theories, investigating the impact of price perceptions and moral values on consumers' purchase intentions in showrooming. Design/methodology/approach Across four experimental studies with different consumer groups, we provide evidence for the joint effect of product price variation and consumers' morality on in-store purchase intentions. Findings We showed that price variation shapes consumers' purchase intentions to the extent that, increasingly, price variation is positively associated with out-of-store purchase intentions, but this influence varies in the presence of price matching. When a price-matching policy is offered, this joint effect is amplified as consumers' inferred motive is negative toward the retailer's policy. In the case of high price variation in the marketplace, price outweighs morality in forming a purchase decision. Originality/value In terms of consumer morality, when consumers recognize retailers' fair price policies, they reward those retailers by choosing them to complete their purchases in-store. We further support that consumers are likely to respond favorably to the salesperson's polite attitude. Our findings also contribute to the broader literature on dynamic capabilities by highlighting how retailers adapt pricing strategies in response to consumer morality and behavior. These insights align with innovation learning frameworks, where corrective pricing strategies serve as responses to prior mismatches in consumer expectations.