A Closer look at reference price: A commentary

Angela Y. Lee ()
Additional contact information
Angela Y. Lee: Northwestern University

AMS Review, 2013, vol. 3, issue 3, No 6, 154 pages

Abstract: Abstract In their historical overview of behavioral pricing research, Cheng and Monroe (2013) advanced five principles related to the concept of reference price: 1) there is a latitude of price indifference around a fuzzy reference price; 2) consumers may have a specific reference price for each product, sold at a particular channel, at a particular time or season, displayed amidst a particular array of other products; 3) the encounter of a new price results in the reference price shifting in the direction of the new price, resulting in an assimilation effect; 4) consumers are differentially sensitive to a price increase versus price decrease; 5) the sequential order and the distribution of prices have different effects on the reference price. This commentary highlights some of the interesting aspects of these concepts and discusses potential avenues for future research.

Keywords: Reference; price (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s13162-013-0053-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:amsrev:v:3:y:2013:i:3:d:10.1007_s13162-013-0053-x

Ordering information: This journal article can be ordered from
http://www.springer. ... gement/journal/13162

DOI: 10.1007/s13162-013-0053-x

Access Statistics for this article

AMS Review is currently edited by Manjit S. Yadav

More articles in AMS Review from Springer, Academy of Marketing Science
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().