Anchoring effects of advertised reference price and sale price: The moderating role of saving presentation format

The effect of incentives on customer evaluations of service bundles

“…Message-framing effects are well established in the literature as a determinant of consumer purchase decisions (Chandrashekaran and Grewal, 2006;Puto, 1987). Framing effects occur when a superficial variation in the description of an offer leads consumers to make additional positive or negative associations about the product (Darke and Chung, 2005).…”

Buying while expecting to sell: The economic psychology of online resale

“…The concept of reference price is well established, and continues to receive attention in the marketing and consumer behavior literature (Chandrashekaran and Grewal, 2006;Monroe and Lee, 1999;Moon and Voss, 2009;Rajendran and Tellis, 1994;Winer, 1986). An internal reference price (IRP) can be defined as "an internal price to which consumers compare observed prices" (Winer, 1989, p. 35).…”

“…An internal reference price (IRP) can be defined as "an internal price to which consumers compare observed prices" (Winer, 1989, p. 35). Scholars commonly agree that consumers possess an internal reference, which may be based on previous experience (Lattin and Bucklin, 1989;Winer, 1989), external information such as advised prices (Chandrashekaran and Grewal, 2006;Urbany et al, 1988), the reserve price of an online auction (Kamins et al, 2004), and/or contextual effects (Lichtenstein and Bearden, 1988). Empirical research has proved that consumers behave as if they have a reference price to which they refer in their decision process (Kalyanaram and Winer, 1995), and that retailers can improve consumers' perceptions of IRP by providing an external reference price (ERP).…”

The Effect of Colour on the Anchoring Heuristic in Consumer Decision Making

“…As a result, the anchor's effect on the listing price was confirmed for both amateur and expert participants under each condition. The effect of anchoring heuristic in numerical estimation or the consumer field has been reported in other previous research in that the anchor is effective when it is obviously random and irrelevant (Champman & Johnson, 1999), and that consumers utilise the advertised reference price, an anchor, to their internal reference prices (Chandrashekaran & Grewal, 2006). In addition to these, Ritov (1996) reported the anchoring effect in a simulated market negotiation exploring the anchoring level through different profit margins and initial offers.…”