Disadvantages of red: The color congruence effect in comparative price advertising

Based on the metaphorical association of color, the color red is often associated with a "hot deal" in a price promotion context, which has led to the popular use of red in promotions in the marketplace. In two studies, this research challenges the lay belief that the color red used in price advertising positively influences consumers' perceptions of value. The findings from the two studies revealed a contrasting pattern of results depending on the depth of the discount. When the discount depth was high (consistent with consumers' lay belief), the red color led to more favorable responses to a price promotion than other colors (white or blue in Study 1 and green in Study 2). In contrast, when the discount depth was unambiguously low, consumers who were exposed to a red colored price promotion advertisement reported a perception of a lower value compared to those who saw the same advertisement with other colors We attribute this effect to the degree of "processing fluency" that arises from the congruence between the color and promotion content. Our research adds to the existing psychology literature on color functioning by showing a match between the referential meaning of the color red (i.e., a hot deal) and consumers' perceptions in marketing communication.