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Seemingly incidental anchoring: the effect of incidental environmental anchors on consumers’ willingness to pay

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  • Kivilcim Dogerlioglu-Demir
  • Cenk Koçaş

Abstract

This article explores the influence of seemingly incidental numbers on willingness to pay as a function of internal reference price strength. Four experiments suggest that anchoring effects occur only when consumers hold weak internal reference prices for the target product. For products with strong internal reference prices, anchoring occurs if the numerical value is part of the product identity and resembles a price. Copyright Springer Science+Business Media New York 2015

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  • Kivilcim Dogerlioglu-Demir & Cenk Koçaş, 2015. "Seemingly incidental anchoring: the effect of incidental environmental anchors on consumers’ willingness to pay," Marketing Letters, Springer, vol. 26(4), pages 607-618, December.
    • Handle: RePEc:kap:mktlet:v:26:y:2015:i:4:p:607-618
    DOI: 10.1007/s11002-014-9295-0
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    References listed on IDEAS

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    1. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2004. "Revealing consumers' willingness-to-pay: A comparison of the BDM mechanism and the Vickrey auction," Journal of Economic Psychology, Elsevier, vol. 25(6), pages 725-741, December.
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    3. Mussweiler, Thomas & Strack, Fritz, 2001. "The Semantics of Anchoring," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 234-255, November.
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    5. Adaval, Rashmi & Monroe, Kent B, 2002. "Automatic Construction and Use of Contextual Information for Product and Price Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(4), pages 572-588, March.
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    Cited by:

    1. Li, Lunzheng & Maniadis, Zacharias & Sedikides, Constantine, 2021. "Anchoring in Economics: A Meta-Analysis of Studies on Willingness-To-Pay and Willingness-To-Accept," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    2. Koçaş, Cenk & Dogerlioglu-Demir, Kivilcim, 2020. "The 1 in 1,000,000: Context effects of how numbers cue different kinds of incidental environmental anchoring in marketing communications," Journal of Business Research, Elsevier, vol. 109(C), pages 536-544.
    3. Amasino, Dianna R. & Dolgin, Jack & Huettel, Scott A., 2023. "Eyes on the account size: Interactions between attention and budget in consumer choice," Journal of Economic Psychology, Elsevier, vol. 97(C).
    4. Katina Kulow & Keith S. Coulter & Michael J. Barone & Xingbo (Bo) Li, 2022. "How internal reference prices determine when a price’s location will influence consumer judgments," Marketing Letters, Springer, vol. 33(4), pages 563-575, December.
    5. Geneviève Bassellier & Jui Ramaprasad, 2023. "All External Reference Prices Are Not the Same: How Magnitude, Source, and Fairness Shape Payment for Digital Goods," Information Systems Research, INFORMS, vol. 34(4), pages 1761-1774, December.

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