Advanced Search
MyIDEAS: Login

Reference Price and Price Perceptions: A Comparison of Alternative Models

Contents:

Author Info

  • Niedrich, Ronald W
  • Sharma, Subhash
  • Wedell, Douglas H
Registered author(s):

    Abstract

    Reference price effects on consumer price perceptions are often explained by Helson's adaptation-level theory, in which the cognitive representation of reference price is the prototype of the relevant category. However, recent conceptualizations and empirical evidence suggest the possibility of an exemplar model, which may be specified using Volkmann's range theory or Parducci's range-frequency theory. In two experiments, these three contextual models of reference price effects are pitted against one another. Based on the MANOVA and model fitting, range-frequency theory accounted for reference price effects that the other theories could not, suggesting that consumers compare the target price against specific members of the category rather than the category prototype. A third experiment demonstrated that range and frequency effects are moderated by the stimulus presentation condition, suggesting that consumers place greater weight on extreme prices anchoring the range for internal reference prices than for external reference prices. Copyright 2001 by the University of Chicago.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Consumer Research.

    Volume (Year): 28 (2001)
    Issue (Month): 3 (December)
    Pages: 339-54

    as in new window
    Handle: RePEc:ucp:jconrs:v:28:y:2001:i:3:p:339-54

    Contact details of provider:
    Web page: http://www.journals.uchicago.edu/JCR/

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Choi, Sungchul & Park, Sang-June & Qiu, Chun (Martin) & Stanyer, Mike, 2013. "The discount is unfair: Egocentric fairness in risky discounts," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 32-43.
    2. József Sákovics, 2011. "Reference distorted prices," ESE Discussion Papers 203, Edinburgh School of Economics, University of Edinburgh.
    3. Ranyard, Rob & Missier, Fabio Del & Bonini, Nicolao & Duxbury, Darren & Summers, Barbara, 2008. "Perceptions and expectations of price changes and inflation: A review and conceptual framework," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 378-400, August.
    4. Moon, Sangkil & Voss, Glenn, 2009. "How do price range shoppers differ from reference price point shoppers?," Journal of Business Research, Elsevier, vol. 62(1), pages 31-38, January.
    5. Jessica M. Choplin & Douglas H. Wedell, 2014. "How many calories were in those hamburgers again? Distribution density biases recall of attribute values," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(3), pages 243-258, May.
    6. Fabio Missier & Nicolao Bonini & Rob Ranyard, 2007. "The Euro Illusion in Consumers’ Price Estimation: An Italian–Irish Comparison in the Third Year of the Euro," Journal of Consumer Policy, Springer, vol. 30(4), pages 337-354, December.
    7. Brown, Gordon D. A. & Gardner, Jonathan & Oswald, Andrew J. & Qian, Jing, 2005. "Does Wage Rank Affect Employees' Wellbeing?," IZA Discussion Papers 1505, Institute for the Study of Labor (IZA).

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ucp:jconrs:v:28:y:2001:i:3:p:339-54. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.