Determinants of buyers' aspiration and reservation price

Kristensen, Henrik; Gärling, Tommy

doi:10.1016/s0167-4870(97)00020-2

Cited by 51 publications

(34 citation statements)

References 17 publications

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“…The single-point representation of reservation price requires the central assumption that a consumer knows with certainty how much she would be willing to pay for one unit of the 7 For example, the implied purchase probability is 100% in Kristensen & Garling's (1997) definition of reservation price, 50% in the definitions of Casey and Delquie (1995) and Jedidi and Zhang (2002), and 0% in Scherer's (1980). product (cf.…”

Section: Theoretical Underpinnings For Reservation Price As a Rangementioning

confidence: 99%

Reservation Price as a Range: An Incentive-Compatible Measurement Approach

Wang

Venkatesh²,

Chatterjee³

2007

Journal of Marketing Research

128

110

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Drawing on the literature on buyers' uncertainty in preference and product knowledge, the authors make, and empirically test, the proposition that an individual consumer's reservation price for a product is more meaningfully and accurately represented as a range than as a single point. Given this conceptualization, they propose an approach for incentive compatible elicitation of an individual's reservation price range (ICERANGE) that builds on the Becker, DeGroot, and Marschak (BDM, 1964) point-of-purchase method. Two empirical applications of the approach provide an assessment of its practicality and its predictive performance relative to current methodologies for reservation price elicitation. Results demonstrate that the proposed method significantly outperforms the benchmark approaches in terms of predictive validity, while yielding valuable incremental information about uncertainty in product valuation.

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Section: Theoretical Underpinnings For Reservation Price As a Rangementioning

confidence: 99%

Reservation Price as a Range: An Incentive-Compatible Measurement Approach

Wang

Venkatesh²,

Chatterjee³

2007

Journal of Marketing Research

128

110

View full text Add to dashboard Cite

show abstract

“…The economics literature defines the reservation price as the price above which the product will not be purchased, or the most that one is willing to pay. The most one is willing to pay is thought to be a function of the price of substitutes and personal factors such as income and preferences (Kristensen & Garling, 1997).…”

Section: Conceptualizations Of and Relationships Among Irpsmentioning

confidence: 99%

Interrelationships and distinct effects of internal reference prices on perceived expensiveness and demand

Garbarino

Slonim

2003

Psychology and Marketing

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Although the role of reference prices is widely accepted, what reference price people use in what evaluation has received little attention. This article proposes that the compatibility of framing determines what reference price is used in different evaluations. Specifically, it is found that the market-framed fair reference price determines the market-framed perception of expensiveness and that the personally framed reservation price determines the personally framed demand. ᭧

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“…Reservation price constitutes the bottom of such a range. Some studies have found reservation prices to be an important determinant of the price negotiation outcome (Kristensen & Gaerling, 1997a;.…”

Section: References In Price Researchmentioning

confidence: 99%

“…The seller will judge any counter offer by the buyer primarily against this target. Kristensen and Gaerling (1997a) proposed that one party's target price reflects the estimate of the other party's reservation price. That is, a seller's target price would reflect the estimated maximum willingness to pay of the buying counterpart.…”

Section: References In Price Researchmentioning

confidence: 99%