New developments in behavioral pricing research

Koschate‐Fischer, Nicole; Wüllner, Katharina

doi:10.1007/s11573-016-0839-z

Cited by 25 publications

(22 citation statements)

References 351 publications

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“…As such, when individuals make product choices they have a reference price in mind [63]. This acts as an anchor for price evaluation, consequently influencing consumer perception of price and purchase decisions [64,65]. If relative price triggers such behavioural mechanisms and biases, then it is potentially a worthy target for choice architecture.…”

Section: Behavioural Initiatives To ‘Nudge’ Pro-animal Welfare Behmentioning

confidence: 99%

Section: Behavioural Initiatives To ‘Nudge’ Pro-animal Welfare Behmentioning

confidence: 99%

“…This phenomenon, which has become known as the reference price concept, is found to be one of the central drivers of consumer decision-making in price evaluation scenarios [64]. Although reference price is difficult to conceptualise due to its intrapersonal nature, the generally held view is that it has both temporal and contextual components [64,66]. The former being the internal reference price a consumer assimilates from their memory of the highest and lowest prices paid [67] and the latter being the external in-store prices at time of purchase [66].…”

Section: Behavioural Initiatives To ‘Nudge’ Pro-animal Welfare Behmentioning

confidence: 99%

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Reducing the Consumer Attitude–Behaviour Gap in Animal Welfare: The Potential Role of ‘Nudges’

Vigors

2018

Animals

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Simple SummaryMany members of the public express a desire for farm animals to have a good quality of life. Yet, when it comes to purchasing higher welfare products which would support this, many consumers do not ‘walk their talk’. This paper introduces the concept of ‘nudging’ as a means to help consumers align their actions with their intentions and support their desire to engage in pro-animal welfare behaviours. ‘Nudging’ is a collection of behaviour change tools designed to hint to, or suggest, a choice most closely aligned with an individual’s self-interests or intentions. Their purpose is to simplify the decision-making environment by working in concert with the behavioural flaws known to influence human decision-making. Four specific behavioural ‘nudges’ are outlined: self-nudges, choice architecture, social norms and pre-commitments, along with examples of how they can be applied to animal welfare. Inspired by effective applications of ‘nudging’ to close the consumer attitude–behaviour gap in other relevant domains, this paper seeks to highlight how similar initiatives might be applied to better support higher welfare choices amongst consumers and in turn, enhance the lives of farm animals.AbstractCitizen concern for the welfare of farm animals is well documented. However, there is a notable gap between people saying they want improved farm animal welfare and how they actually behave as a consumer. This is known as the citizen–consumer attitude–behaviour gap. As improvements in farm animal welfare can be affected by market demand, the choices consumers make become important. This paper introduces the concept of ‘nudging’ and discusses how it could be applied to reduce the attitude–behaviour gap amongst consumers. By designing the choice environment to better reflect the behavioural biases known to impact human decision-making, ‘nudge’ tools function to prompt individuals to make choices that are aligned with their stated intentions. Four ‘nudge’ tools: self-nudges, choice architecture, social norms and pre-commitments are discussed. The behavioural rationales for their use are reviewed and examples of how they might be applied to animal welfare provided. Improved farm animal welfare arguably requires improved pro-welfare consumer behaviour. This paper highlights how this might be encouraged by: self-nudging the salience of an ethical self-image; altering the choice architecture to influence decision-making; articulating social norms to impact behaviour; and using pre-commitment devices to overcome self-control issues.

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Section: Behavioural Initiatives To ‘Nudge’ Pro-animal Welfare Behmentioning

confidence: 99%

Section: Behavioural Initiatives To ‘Nudge’ Pro-animal Welfare Behmentioning

confidence: 99%

Section: Behavioural Initiatives To ‘Nudge’ Pro-animal Welfare Behmentioning

confidence: 99%

See 1 more Smart Citation

Reducing the Consumer Attitude–Behaviour Gap in Animal Welfare: The Potential Role of ‘Nudges’

Vigors

2018

Animals

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“…Hence, it is clear that pricing practice would benefit from new techniques that obviate problems related to stated consumer responses [19]. More specifically, it would be useful to have estimates of WTP that are not derived from explicit judgments but rather from implicit processes.…”

Section: Introductionmentioning

confidence: 99%

Beyond asking: Exploring the use of automatic price evaluations to implicitly estimate consumers’ willingness-to-pay

et al. 2019

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Explicit consumers responses are often adverse for the validity of procedures used to estimate consumers’ willingness-to-pay (WTP). This paper investigates if price evaluations occur automatically and to what extent these automatic processes can be used to implicitly estimate consumers’ WTP. An adapted version of the task-rule congruency (TRC) paradigm was used in two studies. Results of the first study provided evidence for the notion that prices are automatically evaluated. However, the used procedure had limitations that restricted its utility as an implicit WTP estimate. The procedure was adjusted, and an additional study was conducted. The results of the second study also indicated that prices were evaluated automatically. Additionally, the procedure used during the second study allowed to explore to what extent the observed TRC effects could be used to implicitly estimate consumers’ WTP. Taken together, these studies provided evidence for the notion that prices are evaluated automatically. Furthermore, the procedure has the potential to be further developed into an implicit estimate of consumers’ WTP.

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“…Consumers update their price judgments continually in the context of experience and advertising dynamics (Adaval, ). Current research on consumer price decisions has focused on consumer price information processing phases (price acquisition, price evaluation, and price storage) and their consumption behaviors (Koschate‐Fischer & Wüllner, ), although focusing on static information and explicit processes in certain environments. Some literature has also discussed dynamic consumer choices and the influence of consumers' implicit information learning process on consumer behaviors (Burke, Harlam, Kahn, & Lodish, ), although these studies have ignored the dynamic changes of uncertain information under the new pricing mechanism and have not explained consumer responses to prices under the new pricing mechanism.…”

Section: Introductionmentioning

confidence: 99%

Consumers' Bayesian learning under Knightian uncertainty: An eye‐tracking analysis

Song

Jiang

2018

J of Consumer Behaviour

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In recent years, risky decisions and the “gambling paradigm” have been mainstream topics in economics and psychology research. However, the choice of Knightian uncertainty, especially as it relates to the potential cognitive processes of consumers in marketing, has not drawn the attention of scholars. This study introduced Bayesian learning theory to reproduce the consumer learning process and conducted a two‐stage experiment to explore the process of how perceived price and uncertain quality information influence consumer learning and decisions. The results were validated via an eye‐tracking experiment with dynamic (updated) advertising information to observe the learning mechanism of consumers under Knightian uncertainty. The results showed that consumers conduct irregular Bayesian learning based on different perceived price levels in different information state spaces. Belief changes follow the first‐order Markov learning rule, and Bayesian learning is a dual‐system process. Overall, the results are in line with the belief‐integration principle of the Bayesian learning model under Knightian uncertainty.

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New developments in behavioral pricing research

Cited by 25 publications

References 351 publications

Reducing the Consumer Attitude–Behaviour Gap in Animal Welfare: The Potential Role of ‘Nudges’

Reducing the Consumer Attitude–Behaviour Gap in Animal Welfare: The Potential Role of ‘Nudges’

Beyond asking: Exploring the use of automatic price evaluations to implicitly estimate consumers’ willingness-to-pay

Consumers' Bayesian learning under Knightian uncertainty: An eye‐tracking analysis

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