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Spillover Effects: How Consumers Respond to Unexpected Changes in Price and Quality

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  • Narayan Janakiraman
  • Robert J. Meyer
  • Andrea C. Morales
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    Abstract

    This article examines how unexpected changes in the marketing mix of one product in a retail setting can influence demand for other, unrelated, items. Results from two laboratory studies show that spillover effects can occur in response to both positive and negative changes in either the price or quality of a product, such that positive changes increase total spending on other items and negative changes reduce it. The results also demonstrate that an attributional process underlies these effects, indicating that consumers experience specific affective responses directed at the retailer that lead them either to reward or punish the retailer accordingly. (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..

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    File URL: http://www.journals.uchicago.edu/doi/pdf/10.1086/508440
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    Bibliographic Info

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

    Volume (Year): 33 (2006)
    Issue (Month): 3 (October)
    Pages: 361-369

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    Handle: RePEc:ucp:jconrs:v:33:y:2006:i:3:p:361-369

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    Web page: http://www.journals.uchicago.edu/JCR/

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    Cited by:
    1. József Sákovics, 2011. "Reference distorted prices," Quantitative Marketing and Economics, Springer, vol. 9(4), pages 339-363, December.
    2. Campbell, Benjamin L. & Behe, Bridget K. & Khachatryan, Hayk & Hall, Charles R. & Dennis, Jennifer H. & Huddleston, Patricia T. & Fernandez, R. Thomas, 2013. "Incorporating Eye Tracking Technology and Conjoint Analysis to Better Understand the Green Industry Consumer," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150431, Agricultural and Applied Economics Association.
    3. Jozsef Sakovics, 2007. "Reference price distortion," ESE Discussion Papers 177, Edinburgh School of Economics, University of Edinburgh.

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