Buyers' Subjective Perceptions of Price

Monroe, Kent B.

doi:10.2307/3149411

Cited by 570 publications

(368 citation statements)

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“…A relação entre preço do produto ou serviço e expectativa gerada no momento do consumo vem sendo estudada há décadas por diversos acadêmicos do marketing (LEAVITT, 1954;MONROE, 1973;RAO e MONROE, 1988;MUNGER e GREWAL, 2001; RONDAN-CATALUÑA e MARTIN-RUIZ, 2011). Os estudos desses autores indicam que a identificação do preço no momento do consumo pode ser um influenciador das expectativas geradas na aquisição de um produto ou serviço.…”

Section: Efeito Moderador Do Preçounclassified

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Antecedentes e dimensões da experiência de consumo: uma abordagem experimental na satisfação de hóspedes

2013

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Section: Efeito Moderador Do Preçounclassified

“…Vários estudos (LEAVITT, 1954;MONROE, 1973;RAO e MONROE, 1988;MUNGER e GREWAL, 2001;HARMON e FOOTE, 2004; RONDAN-CATALUÑA e MARTIN-RUIZ, 2011) evidenciam haver uma relação positiva entre a precificação de um produto e as percepções no momento do consumo do mesmo.…”

Section: Introductionunclassified

Antecedentes e dimensões da experiência de consumo: uma abordagem experimental na satisfação de hóspedes

2013

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“…Furthermore, even though theory would not predict price-endings different from 99 in equilibrium 2 it predicts similar demand for such items as long as they are priced with the same euro digit. A different explanation for the level effect is mentioned already by Monroe (1973). The hypothesis postulates that consumers, when they plan to purchase an item, have already formed an expectation of the price they are going to pay, a so-called target price.…”

Section: Theories For Price Pointsmentioning

confidence: 99%

“…The most famous example is the anecdotal account (Stiving and Winer, 1997) of shop-owners, who posted prices which would force the clerks to give back some small change in order to force their staff to register the transactions rather than pocket the money. Among other ad-hoc theories Monroe (1973) mentions (and refutes) views that the number 9 might be considered a magical number with special properties. Clustering has also been considered as a tool to maintain tacit collusion (i) The first approach has been called level effect, left digit effect or left to right processing (Thomas and Morwitz (2007), Basu (2006) or Thomas and Morwitz (2005)).…”

Section: Theories For Price Pointsmentioning

confidence: 99%

99 Cent: Price Points in E-Commerce

2010

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10022.pdf 99c: Price-Points in E-Commerce: Non -Technical SummaryThis paper attempts to shed light on the pricing behaviour of firms or sellers in market places with price competition. In particular, it aims at testing the mechanism that lies at the heart of one of the most famous models in economics, namely the Bertrand model of competition. This model suggests that firms' profits will be zero as soon as there are at least two sellers in the market. The model is built on the idea that consumers will go to the cheapest shop, even if the differences in prices are "infinitesimal". As a result, firms are tempted to undercut their opponents' price by a small amount and they do so over and over until they end up charging the cost at which they produce their products.However, the underlying assumption is at odds with the observation that consumers typically do not care very much about a single cent and the predicted outcome clearly goes against the fact that many prices end in 99c. If sellers really charged the price at which they buy or produce a good or a service, we should observe all possible price endings. Basu (2006) argues that the prevalence of 99 cent prices in shops can be explained by rational consumers who disregard the rightmost digits of the price. This "bounded rational" behaviour leads to an Bertrand equilibrium with positive mark-ups allowing firms to make at least small profits.We use data from an Austrian price comparison site, which bears the advantage that in such an environment other factors than price both can be observed online and play a minor role. Price comparison sites are therefore highly suited for our test.We find results highly compatible with Basu's theory. We can show that price points -in particular prices ending in 9 -are more frequent than other endings and have significant impact on consumer demand. This shows that the mechanism that was postulated by Bertrand is not in place. Consumers do not necessarily choose the cheapest price and they even less do so when the Euro digits of the price are the same (i.e. when the difference is small). Moreover, the nine-ending prices are sticky: neither the price-setter itself wants to change them nor the rivals do underbid these prices, if they represent the cheapest price on the market. This might either show that shops seem to believe that it is no use to only slightly undercut a rival's price if this do...

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“…The reference price concept has also been applied in B2B marketing Wilken et al, 2010) and beyond the marketing domain, such as in human resource management (Siems, Goelzner, & Moosmayer, 2012) and in accounting (Mitter C. & F., 2008). Conceptually, reference prices reflect expectations of acceptable adaptation levels (Monroe, 1973), normative considerations regarding fairness (Bolton, Warlop, & Alba, 2003), aspiration perspectives (Klein & Oglethorpe, 1987), and aspects of social context (Mezias, Chen, & Murphy, 2002).…”

Section: References In Price Researchmentioning

confidence: 99%