Up, up and away! The metaphor of verticality and the moderating role of regulatory focus in price assessments

Abstract

PurposeThe purpose of this study is to analyze the effects of the metaphor of verticality on how individuals assess prices, having regulatory focus as a moderator of this relationship.Design/methodology/approachTwo experiments were conducted with a 2 × 2 between-subjects design (metaphor of verticality: physically higher vs physically lower × regulatory focus: promotion vs prevention). The second study performed moderated mediation by incorporating the self-esteem variable.FindingsThe results show that the treatment group consisting of prevention-focused individuals who consider themselves physically higher assessed prices according to what was proposed for the study compared to the group consisting of promotion-focused individuals who consider themselves physically lower. Participants in Treatment Group 1 attributed the lowest prices to products, demanded more significant discounts to go to another store searching for a product and considered the prices more unfair.Originality/valueThe primary contribution of this study is to reveal that the position of one's body on the vertical axis influences their thoughts and, therefore, their decision-making in the scope of products and services prices. Moreover, regulatory focus can attenuate such effects.

The Effect of Price Discrimination on Fairness Perception and Online Hotel Reservation Intention

“…Costa et al [34] found that a regulatory focus has an impact on price assessment. When assigning the price of a product or service, prevention-focus consumers tend to avoid undesirable outcomes, and make decisions that provide them with a sense of security [28].…”

“…This is because prevention-focus consumers are sensitive to potential negative consequences, and they see higher prices as having detrimental effects on them, by reducing their available resources. Consequently, they may feel that they have a lack of funds for other needs [34].…”

“…Few studies have discussed price discrimination and fairness in the context of brand familiarity and a regulatory focus situation. These two variables are important predictors in determining pricing strategies, because they can reveal consumer reactions to pricing [8,20,21,34]. Therefore, this study aimed to explore how price discrimination influences fairness perceptions and reservation intentions for online hotel booking, in the context of brand familiarity and a regulatory focus situation.…”