The Effects of Contextual Prices on Consumers' Brand Evaluation: a Test of Alternative Reference Price Models

Consumer's price evaluation is susceptible to contextually presented prices. The existing literature suggests that price evaluation is affected by (1) the range of the context prices, (2) the price rank in the price set, and (3) the average context price. The results of three studies present co...

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Bibliographic Details
Main Authors: Suk, Kwanho, Yoon, Song-Oh, Song, Sie Yeoun
Format: Conference Proceeding
Language:English
Subjects:
Alternatives
Consumer behavior
Prices
Studies
Online Access:Get full text
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Summary:Consumer's price evaluation is susceptible to contextually presented prices. The existing literature suggests that price evaluation is affected by (1) the range of the context prices, (2) the price rank in the price set, and (3) the average context price. The results of three studies present converging evidence that which feature of the context price plays a more important role is moderated by the type of evaluation task. The range has stronger influence when evaluating attractiveness of a target, whereas either the rank or the average price effect is predominant when deciding on whether or not to purchase a brand.
ISSN:0098-9258