The impact of the colour red on product price perception in retail print advertising

Abstract

ABSTRACT Colour is often an important non verbal cue in advertising. Much research has been dedicated to the creative aspects of advertising generally and to factors affecting consumer response in relation to marketing, advertising and pricing. This study looks at the colour red and investigates whether use predominant use of red in sale promotions print advertising is justified on the basis of its ability to impact cognitively or affectively. The study comprises of two experiments, one for awareness and one for price perception and purchase intent. In each experiment, red is compared to other colours in order to establish any significant differences. The second experiment goes further to examine whether the intensity of colour, verbal cues or demographic differences have an impact on the results. The literature review begins with an examination of price theory and the role of sales promotions in organizations. It considers advertising response models with focus on the persuasive hierarchy AIDA model. The impact of colour is then considered along with consumer psychology and behavior as well as theories relating to demographic and cultural responses to colour in advertising. Argument from the sources is then put forward to suggest that research into the effects of colour in advertising is underexplored and that the role of colour in affecting response is complex and is over oversimplifies by advertising practitioners. The research results are presented revealing few significant differences between red and alternative colours for awareness, price perception or purchase intent. The result for awareness is blurred by research limitations, but red does not emerge as a candidate for exacting higher levels of awareness than a number of other colours. In the second experiment, red is found to be inferior to blue in affecting purchase intent. Red at 50% saturation is shown to have a more positive impact on purchase intent that a red hue at full saturation. Demographic splits do not show conclusive results, but it is suggested that a larger sample size would induce a better price perception of red for the black community than for other racial groupings. Discussion and recommendations follow. In this study, red shows no qualities to justify its predominant use in price promotion advertising and more benefit might be obtained for the brand by differentiating through use of alternative colours that may stand out in a sea of red over traditional sale periods. The principle recommendations are, firstly, the need to acquire a deeper understanding of the effect of colour in advertising. In the more complex, competitive global marketplace competition for customer attention is high and the margin of error for irrelevant advertising appeals are low. Secondly, the argument is made for colour usage to be built around long term branding concerns rather than short term requirements for advertising response.