Europoly Money: the Impact of Currency Framing on Tourists' Spending Decisions

The "Europoly Money" effect predicts an increase in spending in continental Europe due to the lower nominal prices in Euros relative to previous local currencies. Two experiments examine how sequential and simultaneous exposure to nominally different (but economically identical) prices inf...

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Bibliographic Details
Main Authors: Raghubir, Priya, Morwitz, Vicki, Santana, Shelle
Format: Conference Proceeding
Language:English
Subjects:
Consumer behavior
Euro
Macroeconomics
Price levels
Studies
Tourism
Online Access:Get full text
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Summary:The "Europoly Money" effect predicts an increase in spending in continental Europe due to the lower nominal prices in Euros relative to previous local currencies. Two experiments examine how sequential and simultaneous exposure to nominally different (but economically identical) prices influence price perceptions and purchases. Macroeconomic data support the results.
ISSN:0098-9258