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Do Yellow Price Tags Matter To Consumers? The Relationship Between The Presentation Of The Price And The Reference Price

Author

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  • Tanel Mehine

Abstract

The purpose of this article is to find out the relationship between yellow price tags and consumer reference prices. A laboratory study was conducted among 150 respondents, who were put in an experimental purchase situation and their initial internal reference prices were compared affected reference prices. The results revealed that consumers perceive yellow price tags as presenters of discounts. A comparison of the mean values showed that yellow price tags influence the reference price and, moreover, a yellow price tag increased the reference price. As a practical outcome, the results of the study indicated that companies have the opportunity to increase the consumer’s reference price and thereby to raise revenues by changing the colour of the price tag without offering an actual discount.

Suggested Citation

  • Tanel Mehine, 2010. "Do Yellow Price Tags Matter To Consumers? The Relationship Between The Presentation Of The Price And The Reference Price," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 75, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  • Handle: RePEc:mtk:febawb:75
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    Keywords

    yellow price tags; consumer behaviour; reference price;

    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other

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