 Impact of preciseness of price presentation on the magnitude of compromise and decoy effects(Gina) Cui, Yuanyuan, (Sam) Kim, Seongseop and Jungkeun Kim Journal of Business Research, 2021, vol. 132, issue C, 641-652 Abstract: This study aims to test the impact of price preciseness on compromise and decoy effects, analyze the different presentation styles of price information (a precise price presentation vs. a rounded one), and investigate the moderating role of individual differences (i.e., lay rationalism) and decision situations (i.e., time pressure) in travel decision making. It uses a series of empirical tests in which only people with high lay rationalism can distinguish the difference between precise and rounded price information. Major findings show that compromise and decoy effects are salient when a price cue exists, as price information helps the trade-off among options. This study also finds that significant context effects prevail irrespective of price preciseness. Respondents with high lay rationalism or under high time pressure conditions show a tendency to acknowledge discrepancies among options for precise pricing in decision making but not for rounded pricing, thereby resulting in high decoy effects. Keywords: Price; Price preciseness; Compromise effect; Decoy effect; Lay rationalism; Time pressure (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:132:y:2021:i:c:p:641-652 DOI: 10.1016/j.jbusres.2020.10.017 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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