Strengthening the Influence of Advertised Reference Prices through Information Priming

Christina Kan, Donald R. Lichtenstein, Susan Jung Grant and Chris Janiszewski

Journal of Consumer Research, 2014, vol. 40, issue 6, 1078 - 1096

Abstract: The use of advertised reference price promotions, such as "regularly $119.99, sale price $39.99," is ubiquitous in the marketplace. Thirty years of research supports the conclusion that advertised reference prices (e.g., $119.99) exert an influence on consumers' responses to offer prices (e.g., $39.99) via their assimilative influence on consumers' internal reference prices. The present research provides an enriched account of this assimilation process. Specifically, three studies show that increasing the overlap in information made accessible by the advertised reference price and information made accessible by the offer price increases the influence of the information primed by the advertised reference price on the construction of the internal reference price. Consequently, the offer price is considered more attractive. The identification of this process provides insight into additional variables that moderate the influence of advertised reference prices on downstream deal evaluations. Implications for theory, practice, and public policy are discussed.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://dx.doi.org/10.1086/674059 (application/pdf)
http://dx.doi.org/10.1086/674059 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:jconrs:doi:10.1086/674059

Access Statistics for this article

Journal of Consumer Research is currently edited by Bernd Schmitt, June Cotte, Markus Giesler, Andrew Stephen and Stacy Wood

More articles in Journal of Consumer Research from Journal of Consumer Research Inc.
Bibliographic data for series maintained by ().