The Effect of Price Discounts and Store Image on Consumer’s Purchase Intention in Online Shopping Context Case Study: Nokia and HTC

This paper aims to examine the effect of price discounts on store image and eventually consumers’ purchase intention in online shopping context of cell-phones. For this purpose, two cell-phone brands; i.e., Nokia and HTC were selected to study among 248 professors, employees and university students from University of Tabriz, Iran during April-June 2012. Required data was collected through questionnaire. Furthermore, AMOS Graphics software and Structural Equation Modeling (SEM) were used for data analysis and hypotheses testing. The obtained results proved that price discount has a positive effect on perceived store image and store image in turn, positively influences consumers’ purchase intention. Accordingly, online retailers must develop effective marketing plans and improve promotional approaches to create positive store image, attract more consumers and thus, increase their online sales.