Price as a quality or sacrifice cue: Role of goal orientation

Abstract

Prior research seems to have neglected the factors that influence consumers to use price information as an indicator of quality or sacrifice. Based on the concept of ‘goal looms larger’, Study 1 in the present research demonstrated that the extent to which consumers use price information as an indicator of quality or sacrifice is a function of consumer goal (promotion focus vs prevention focus). Study 2 demonstrated that extremeness aversion is a function of consumer goal. The extent of extremeness aversion is significantly greater for prevention‐focused consumers than for promotion‐focused consumers.

Goal orientation and variety seeking behavior: The role of decision task

“…First, while variety-seeking behavior is a key issue in the domain of consumer psychology, regulatory focus theory (promotion-focus vs. prevention-focus) has drawn much attention due to its importance in psychology and has extended into the domain of consumer psychology (i.e. Lin et al, 2007;Lockwood et al, 2002). However, scant research has investigated the impact of goal orientation on variety seeking.…”

“…A major difference between promotion focus and prevention focus is the differential sensitivity towards positive and negative outcomes (Higgins, 1998). The consumer psychology literature has demonstrated that goal orientation has an impact on endowment effect (Higgins, 2002;Liberman, Idson, Camacho, & Higgins, 1999), the status quo bias (Chernev, 2004), framing effect (Jain, Lindsey, Agrawal, & Maheswaran, 2007), compromise effect, attractiveness effect (Mourali, Bockenholt, & Laroche, 2007), and the extent to which consumers use price information as an indicator of quality or sacrifice (Lin, Wu, Chuang, & Kao, 2007). However, scant studies have explored the relationship between goal orientation and variety-seeking.…”

Do ad metaphors enhance or dilute the consumers' brand preferences? Exploring the moderating role of goal orientation

“…A major difference between promotion focus and prevention focus is a differential sensitivity toward positive and negative outcomes (Higgins, 1998). The consumer psychology literature has demonstrated that goal orientation has an impact on endowment effect (Higgins, 2002;Liberman, Idson, Camacho, & Higgins, 1999), the status quo bias (Chernev, 2004), mental accounting (Pham & Avnet, 2004), brand extension (Yeo & Park, 2006), framing effect (Jain, Lindsey, Agrawal, & Maheswaran, 2007;Sett, 2014), attractiveness effect (Mourali, Bckenholt, & Laroche, 2007), the extent to which consumers use price information as an indicator of quality or sacrifice (Lin, Wu, Chuang, & Kao, 2007), variety seeking (Wu & Kao, 2011), team performance (Anne, Daan, & Dirk, 2013), radical innovation (Lameez & Daan, 2014), and creativity (Huang & Luthans, 2015).…”

The impacts of goal orientation, terminology effect, and source credibility on communication effectiveness

“…First, this research is the first to provide empirical evidence that goal orientation moderates the persuasive impact of terminologies. Goal orientation has been discussed in a comprehensive manner, such as endowment effect (Higgins, 2002;Liberman, Idson, Camacho, & Higgins, 1999), the status quo bias (Chernev, 2004), framing effect (Jain, Lindsey, Agrawal, & Maheswaran, 2007), attractiveness effect (Mourali, Bockenholt, & Laroche, 2007), the extent to which individuals use price information as an indicator of quality or sacrifice (Lin et al, 2007), and variety seeking (Wu & Kao, 2011). However, those studies on goal orientation have failed to reach similar conclusions.…”