The moderating effects of need for cognition and cognitive effort on responses to multi-dimensional prices

Hyeong Kim () and Thomas Kramer

Marketing Letters, 2006, vol. 17, issue 3, 193-203

Abstract: We investigate how need for cognition and cognitive effort associated with multi-dimensional pricing combine to influence demand. Experiment 1 shows that individuals with low (vs. high) need for cognition are less likely to purchase products that list price and relative discount separately. The direction of the effect of need for cognition on demand is found to depend on whether consumers’ inaccurate arithmetic generally leads them to overestimate or underestimate final prices. Therefore, experiment 2 finds that individuals with low (vs. high) NFC are more likely to purchase products that list price and relative surcharge separately. As expected, the effect is eliminated for absolute discounts or surcharges and mediated by recalled purchase prices. Copyright Springer Science + Business Media, LLC 2006

Keywords: Need for cognition; Cognitive effort; Discounts; Partitioned prices (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s11002-006-5928-2

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