Experiential and Analytical Price Evaluations: How Experiential Product Description Affects Prices[The Utility of an Information Processing Approach for Behavioral Price Research]

Quantity can be described using perceptual units (e.g., bags, pieces) or standardized units (e.g., ounces, grams). Merely making perceptual units more salient in quantity description can increase perceived economic value. Even when the objective information and numerosity are kept constant, merely presenting the perceptual unit first (e.g., Lay’s Chips 14 snack bags, 14 oz. of chips in snack bags of 1 oz. each) increases willingness to pay compared to presenting the standardized unit first (e.g., Lay’s Chips 14 oz., 14 oz. of chips in snack bags of 1 oz. each). This occurs because perceptual units activate more experiential evaluations whereas standardized units activate more analytical evaluations. An archival study shows that retailers charge higher unit prices for products when perceptual units are salient in quantity description. Six preregistered experiments show that even when both units are available, merely increasing the attentional salience of perceptual units increases willingness to pay. The demonstration that the mere salience of experiential information can alter subjective value offers new insights into the psychology of market prices.