Contextual and Temporal Components of Reference Price

Rajendran, K. N.; Tellis, Gerard J.

doi:10.1177/002224299405800102

“…For this reason, consumers interpret prices to be reasonable, or not, depending on their internal reference points, as postulated by the prospect theory (Thaler, 1985). These internal reference points are established on the basis of the prices paid in the past or exposure to market prices (Rajendran and Tellis, 1994), or of the result of comparing the prices with the quality of the service (Emery, 1969) or by the difference between the sacrifices made and the benefits received in using the service (Zeithaml, 1988) as posited by the value for money approach, which is used in this study. This is especially important on a cruise, where the range of services is very wide, offering transport, accommodation, restaurants, shopping centers, sporting activities, shows, conferences and entertainment in general (Kwortnik, 2008).…”

Section: The Positive Effect Of Perceived Price On Satisfaction and Bmentioning

confidence: 99%

The role of trust in cruise passenger behavioral intentions

Forgas-Coll

¹

,

Palau‐Saumell

²

,

García

³

et al. 2014

Management Decision

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Purpose – The purpose of this paper is to develop and test a framework to investigate the relationship between perceived value, satisfaction, trust and behavioral intentions and the moderator effect of the cruise line on cruise passengers’ perceptions. Design/methodology/approach – A structural model was developed. In order to verify the hypotheses, a total of 729 cruise passengers were sampled. The study of the data used structural equation models by means of a multi-group analysis. Findings – The results of this study suggest significant paths to increase behavioral intentions: perceived service quality? satisfaction? trust?. In addition, it has been proved that the cruise line moderates the relationships between constructs in most of the relationships in the two cruise lines analyzed. Practical implications – The differences in the relationships of perceived service quality with overall satisfaction, trust and behavioral intentions suggest that one of the cruise lines analyzed ought to make decisions to improve the installations and the services on board the ships. These decisions involve substantial investments which affect, as well as the marketing management regarding the design of the product, the financial management and also the CEO. Originality/value – Unlike earlier studies of cruise tourism carried out in Caribbean and Asian destinations, this study empirically tested a model of the formation of behavioral intentions which incorporates trust as a mediator variable between satisfaction and behavioral intentions and between perceived service quality and behavioral intentions in the Mediterranean. Also tests the moderator effect exercised by the cruise line on the consumers’ perception on the way to behavioral intentions.

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“…Other authors contend that it is difficult for the consumer to store information about old prices, and it is therefore more likely that the consumer forms reference prices at the sale point through the observation of certain brands' prices (Hardie et al, 1993;Rajendran and Tellis, 1994). It is also possible to introduce the effect of loyalty towards different brands (Mazumdar and Papatla, 1995).…”

Section: Brand Choice Modelsmentioning

confidence: 99%

Consumer evaluations of sales promotion: the effect on brand choice

Álvarez

¹

,

Casielles

²

2005

European Journal of Marketing

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -This study evidences the influence that sales promotion has on brand choice behaviour. Establishments wish to influence consumers' buying behaviour, and thus they launch strong promotional campaigns or introduce changes in their price policies, among other actions. However, they are not always capable of achieving their goal, since, although they may reach their objective in the short term, when the longer term is considered there are undesirable consumer actions. Design/methodology/approach -The problem of consumer brand choice can be adequately described with logit models that allow the use of discrete dependent variables. The probability that the consumer chooses a brand depends directly on the capacity of satisfaction that the brand holds for him/her. In this case, the dependent variable is the brand, and the independent variables are price, reference price, losses and gains, and the different types or techniques of sales promotion. With the aim of obtaining the necessary information for the present study, a regional consumer panel was used.Findings -The results show that it is necessary to consider the product's promotional state at the moment of purchase as an explanatory element of the process. Promotion is a tool that can help manufacturers and/or retailers in the achievement of their objectives (try the brand, help to decide what brand to buy, etc.). Immediate price reduction is the technique that exerts greatest influence on the brand choice process. It is possible that the consumer perceives a promotion, for example, coupons or rebates, but does not modify his or her behaviour. In this case, manufacturers and/or retailers will be investing their resources in promotional actions that do not have any effect on the consumer. Originality/value -Presents a regional consumer panel that has been elaborated and planned by the authors. Because of this, the information collected is just what was necessary for this study. On the other hand, the paper shows that is very important to know the consumer's preferences and the actions that influence his or her behaviour. Considering the results, it seems that promotions based on price have the greatest effectiveness.

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“…Rajendran and Tellis (1994) conclude that ignorance of the reference price in pricing decisions may lead to suboptimal prices. Niedrich et al (2001) suggest that the reference price is rather a range than a mean (or expected value).…”

Section: The Use Of Reference Pricesmentioning

confidence: 91%

Profiling behavioral pricing research in marketing

Somervuori

¹

2014

Journal of Product &Amp; Brand Management

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to provide an overview of behavioral pricing research, including the identification of the primary areas studied and a summary of the core findings in each based on previous literature. Design/methodology/approach -This research examines 613 articles on the ISI Web of Science database and focuses on marketing journals that discuss behavioral pricing. The reviews of these articles use traditional literature review and research profiling methods. Findings -The main subareas in behavioral pricing this study identifies are the price-quality relationship, reference price, price awareness, price elasticity estimation and price fairness. In general, the behavioral pricing field is relatively new, and all subareas would benefit from additional research. Originality/value -For pricing researchers, this study offers integrative insights into the field based on previous literature and identifies the main contribution and main topic of each. The study also offers suggestions for new research ideas.

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Contextual and Temporal Components of Reference Price

Cited by 267 publications

References 12 publications

The role of trust in cruise passenger behavioral intentions

The role of trust in cruise passenger behavioral intentions

Consumer evaluations of sales promotion: the effect on brand choice

Profiling behavioral pricing research in marketing

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