scholarly journals Internal reference price response across store formats

2021 ◽  
Author(s):  
Ossama Elshiewy ◽  
Anne O. Peschel
Keyword(s):  
Reference Price ◽  
Internal Reference ◽  
Price Response ◽  
Internal Reference Price

Reference Price and Its Asymmetric Effects on Price Evaluations: The Moderating Role of Gender

2017 ◽  
Vol 59 (2) ◽  
pp. 189-194 ◽  
Author(s):  
Choongbeom Choi ◽  
Sung Jun Joe ◽  
Anna S. Mattila
Keyword(s):  
Reference Price ◽  
Internal Reference ◽  
External Reference ◽  
Internal Reference Price ◽  
Scant Attention ◽  
Managerial Implications ◽  
Prior Literature ◽  
External Reference Price ◽  
Promotional Strategies ◽  
The Impact

Empirical research shows that customers form price evaluations by comparing the actual price with a reference price. The relative use of an internal reference price (IRP) versus an external reference price (ERP) is an important issue in the lodging industry due to the popularity of price-comparison–based advertising. Although prior literature shows that demographic factors influence the relative use of IRP and ERP, the impact of gender on the relationship between reference prices and price evaluations has received scant attention in both hospitality and marketing contexts. Drawing on the agency-communal theory, the current research examines the effect of gender on the use of IRP and ERP in price evaluations. The findings indicate that males are more susceptible to IRP than to ERP, whereas females are only influenced by ERP. Relevant managerial implications are drawn in terms of pricing and promotional strategies.

The mediation effects of sticker shock

2015 ◽  
Vol 24 (4) ◽  
pp. 412-419 ◽  
Author(s):  
Weiling Zhuang ◽  
Bruce Alford
Keyword(s):  
Reference Point ◽  
Reference Price ◽  
Marketing Research ◽  
Price Discount ◽  
Internal Reference ◽  
Mediation Effects ◽  
Content Type ◽  
Internal Reference Price ◽  
The Relationship ◽  
Different Sources

Purpose – This study aims to extend prior studies by examining the mediation effects of sticker shock on the relationship between price discount and buying intention. Sticker shock refers to the discrepancy between a brand’s sale price (SP) and an individual’s internal reference price (IRP) (Winer 1985). Design/methodology/approach – Prior marketing research on sticker shock is primarily model-based. The authors employed a between-subject experimental design, and hypotheses were tested using a series of regression functions (Baron and Kenny 1986). Findings – The results suggest the effect of price discount on buying intention is partially mediated by sticker shock. Practical implications – The research results suggest that consumers take into account price messages from different sources, such as advertised reference price, SP and IRP. IRP is a key reference point that consumers use to develop the “gain” or “loss” perception. Firms may apply different strategies to influence consumers’ internal reference point and, in turn, influence the perception of the attractiveness of the sale product. Originality/value – This study contributes to the literature by first testing the mediation effects of sticker shock on the relationship between price discount and buying intention.

scholarly journals When Internal Reference Prices and Price Expectations Diverge: The Role of Confidence

2007 ◽  
Vol 44 (3) ◽  
pp. 401-409 ◽  
Author(s):  
Manoj Thomas ◽  
Geeta Menon
Keyword(s):  
Reference Price ◽  
Internal Reference ◽  
Price Expectations ◽  
Price Expectation ◽  
Reference Prices ◽  
Internal Reference Price ◽  
Pricing Theory

When do internal reference prices differ from articulated price expectations? The authors propose that the internal reference price depends not only on the magnitude of the expected price but also on the confidence associated with this expectation. Four experiments delineate the effects of price expectation and confidence on the internal reference price. In Experiments 1 and 2, the authors manipulate repetition and examine the effects of repetition-induced confidence on price judgments. In Experiments 3 and 4, they manipulate confidence directly to investigate its effects on judgments. The results from all four experiments suggest that consumers with less confidence have higher internal reference prices than more confident consumers, even when they do not differ in their articulated price expectations. The authors discuss the implications of these results for pricing theory.

An Investigation of Reference Price Segments

2000 ◽  
Vol 37 (2) ◽  
pp. 246-258 ◽  
Author(s):  
Tridib Mazumdar ◽  
Purushottam Papatla
Keyword(s):  
Reference Price ◽  
Brand Choice ◽  
Internal Reference ◽  
External Reference ◽  
Proposed Model ◽  
Internal Reference Price ◽  
Managerial Implications ◽  
External Reference Price ◽  
The One ◽  
Better Than

Empirical research on reference price has typically assumed that consumers use either an internal reference price (IRP) or an external reference price (ERP), but not both, in brand choice decisions. In this article, the authors assume that consumers use both IRP and ERP but may consider one of them more salient than the other. The authors develop a model that segments consumers on the basis of the differences in the importance they assign to each type of reference price as well as in their brand preferences and responses to marketing-mix variables. The authors calibrate the model on data for four categories: liquid detergents, ketchup, tissue, and yogurt. In all four categories, the proposed model performs significantly better than the one that assumes that consumers use either IRP or ERP exclusively. The authors discuss the managerial implications of this finding.

scholarly journals Development of a Method of Internal Reference Price for Redistribution of Energy Imbalances in Balancing Groups

2019 ◽  
pp. 515-525
Keyword(s):  
Reference Price ◽  
Free Market ◽  
Electrical Energy ◽  
Internal Reference ◽  
Market Prices ◽  
Internal Reference Price ◽  
Balancing Energy ◽  
Hourly Basis ◽  
Financial Result ◽  
The Coordinator

The market of electrical energy /ЕЕ/ in Bulgaria has been liberated completely since 1 July 2007. Consumers who are out on the free market have to negotiate the price of ЕЕ and to plan on an hourly basis the quantities to be consumed. Any deviation takes them to the balancing market where the prices for the deficit and surplus of energy are unfavorable when compared with market prices. It is a good solution for those consumers to optimize their expenses for ЕЕ by joining a balancing group /BG/. Through their participation in a BG consumers have the best choice and the opportunity to optimize their expenses for imbalances by transferring the responsibility for balancing to the Coordinator of the balancing group /CBG/. CBG is responsible for distributing the total imbalance of the BG among its members, as well as for the prices of the balancing energy within the group. This is what has made the authors of this paper develop and test a method of optimal redistribution of energy imbalances that will lead to the optimization of the financial result of the participants in the balancing group.

Consciousness of Spending on Children's Sports Activities in a Community Sports Club in Japan

2021 ◽  
pp. 428-438
Author(s):  
Yoshifumi Bizen ◽  
Keisuke Kishida ◽  
Shoji Nogi ◽  
Koji Kawakami ◽  
Hisashi Yoshida
Keyword(s):  
Reference Price ◽  
Fair Value ◽  
Price Sensitivity ◽  
Internal Reference ◽  
Sports Clubs ◽  
Sports Club ◽  
Price Range ◽  
Internal Reference Price ◽  
Community Sports ◽  
Sports Activities

In recent years, comprehensive community sports clubs have offering several kinds of sports classes for children. However, there are no clear criteria about the prices charged for these classes. At the same time, to meet members' satisfaction levels, it is very important for managers of comprehensive community sports clubs to understand the fair value of the classes. The purpose of this article is to clarify parents' internal reference price of the monthly fee for their children's sports activities through price sensitivity measurement. As a part of the research, a survey of parents whose children participate in sports classes at the comprehensive community sports clubs was conducted. Over a period of two weeks, 327 questionnaires were distributed and 219 were collected. The results revealed that the range of acceptable price is between 3,372 yen and 5,212 yen, and that a price range between 3,372 yen and 4,672 yen is considered affordable.

Effect of Attribute Complementarity on Consumers' Willingness to Pay for Bundled Products

2018 ◽  
Vol 46 (10) ◽  
pp. 1637-1645
Author(s):  
Chien-Huang Lin ◽  
Ming Chen
Keyword(s):  
Willingness To Pay ◽  
Free Product ◽  
Undergraduate Student ◽  
Reference Price ◽  
Underlying Mechanism ◽  
Public University ◽  
Price Theory ◽  
Internal Reference ◽  
Internal Reference Price ◽  
Managerial Implications

In a sales context, a common promotional tactic is to supplement a required purchase (i.e., the focal product) by offering a free product (i.e., the supplementary product). We examined the underlying mechanism driving consumers' evaluation of the supplementary product after such a promotion, with 120 undergraduate student participants at a large public university in Taiwan. Results showed that consumers demonstrated higher (lower) willingness to pay for a supplementary product that had higher (lower) levels of attribute complementarity with the focal product. However, this effect occurred only when the price of the focal product was much higher than consumer's internal reference price for the supplementary product. Our findings contribute to the literature on bundled products, reference price theory, and consumers' postpromotion perception of supplementary products' price. Theoretical and managerial implications are discussed.

Sign in / Sign up

Export Citation Format

Share Document