An Investigation Into The Effects Of Advertised Reference Prices On The Price Consumers Are Willing To Pay For the Product

Abstract

Despite previous research, the effects of reference prices remain a controversial issue with significant public policy and managerial implications. The paper reports the results of a pilot study which was conducted in a shopping mall. With high involvement, research results suggest that reference prices, perceived quality, and product experience affect he price consumers are willing to pay for the product. With low involvement, the reference price was the only message content variable which had an affect on the price consumers were willing to pay for the product.

Cue-less consumers in factory outlet stores: reference price effects on consumer evaluations when semantic phrases are missing

“…As in prior reference price research studying semantic cues (Berkowitz and Walton, 1980; Grewal et al , 1996; Krishnan et al , 2006), moderate and high levels of reference prices are examined, along with various semantic cues. MSRP was chosen as the semantic cue against which cue-less reference prices would be compared to because: It was the most frequently encountered semantic cue for external reference prices in outlet stores, shopping mall stores and off-price stores searched by the authors (found in 9 of 20 stores). It has been studied extensively in the literature (Compeau and Grewal, 1998; Compeau et al , 2004; Gotleib and Fitzgerald, 1990). …”

“…It has been studied extensively in the literature (Compeau and Grewal, 1998; Compeau et al , 2004; Gotleib and Fitzgerald, 1990).…”