Conscious and Nonconscious Comparisons with Price Anchors: Effects on Willingness to Pay for Related and Unrelated Products

Adaval, Rashmi; Wyer, Robert S
April 2011
Journal of Marketing Research (JMR);Apr2011, Vol. 48 Issue 2, p355
Academic Journal
Exposing consumers to extreme prices can influence the price they are willing to pay for both related and unrelated products. Drawing on previous theories of anchoring and adjustment and selective accessibility of judgment-relevant knowledge, the authors provide an account of both asymmetries in the impact of price anchors across product categories and contingencies in the occurrence of these asymmetries. Four studies show the deliberate consideration of price anchors that can play a key role in whether the effect of the anchors will generalize across product categories. Specifically, an explicit comparison of a product to a price anchor increases the accessibility of features that represent a product available at this price. In turn, these thoughts influence the price that consumers are willing to pay for these products. In the absence of this deliberation, however, anchors influence both related and unrelated products, provided no other cognitive activity occurs in the interim.


Related Articles

  • "An Alternative Account for Reference Price Effects: Repeated Transactions in Markets with Common Uncertainty". Banks, Darryl; Lieb, Daniel // Advances in Consumer Research;2005, Vol. 32 Issue 1, p239 

    The article discusses consumer research and market research concerning the purchase of goods at prices above reference price thresholds and below reservation price values. According to the article, consumers can preserve seller uncertainty regarding market price limits and secure long-term price...

  • Incidental Prices and Their Effect on Willingness to Pay. Nunes, Joseph C.; Boatwright, Peter // Journal of Marketing Research (JMR);Nov2004, Vol. 41 Issue 4, p457 

    Previous research has explored how both internal and external references prices affect consumer perceptions and consequently the price that consumers are willing to pay for a product or service. Historically, researchers have examined the effects of exposure to prices for the same product, the...

  • Overlap of accessible information undermines the anchoring effect. Bahník, Štĕpán; Strack, Fritz // Judgment & Decision Making;Jan2016, Vol. 11 Issue 1, p92 

    According to the Selective Accessibility Model of anchoring, the comparison question in the standard anchoring paradigm activates information that is congruent with an anchor. As a consequence, this information will be more likely to become the basis for the absolute judgment which will...

  • An Anchoring and Adjustment Model of Purchase Quantity Decisions. Wansink, Brian; Kent, Robert J.; Hoch, Stephen J. // Journal of Marketing Research (JMR);Feb1998, Vol. 35 Issue 1, p71 

    How do consumers decide how many units to buy? Whereas prior research on individual consumers' purchases has focused primarily on purchase incidence and brand choice, the authors focus on the psychological process behind the purchase quantity decision. The authors propose that a simple anchoring...

  • Factors affecting price setting in online auctions. Qiu, Chun; Leszczyc, Peter T L Popkowski; He, Yongfu // Journal of Revenue & Pricing Management;May2012, Vol. 11 Issue 3, p289 

    This article studies the effects of product class and seller reputation on price-setting in online auctions. Sellers may offer price information to potential bidders through buy-now prices (BNPs) and starting prices (SPs). In two experiments, the authors show that for products with values that...

  • Let Your Customers Segment Themselves by What They're Willing to Pay. Michel, Stefan // Harvard Business Review Digital Articles;3/11/2015, p2 

    The article discusses how businesses can use the self-segmented fencing strategy to charge customers with different willingness-to-pay (WTP) with varying prices for the same or similar service or product.

  • The Relationship between Internal Reference Price and Three Aspects of Dealing Patterns: Frequency, Depth, and Depth Variation. Shirai, Miyuri // Advances in Consumer Research - Asia-Pacific Conference Proceedi;2005, Vol. 6, p299 

    This paper is an extension of Kalwani and Yim (1992) that includes depth-variation in addition to depth and frequency, as factors in dealing patterns that affect the internal reference price. It also investigates the interaction effects among the three factors. Depth-variation indicates whether...

  • A Theoretical Framework for Formulating Non-Controversial Prices for Public Park and Recreation Services. Crompton, John L. // Journal of Leisure Research;2011 First Quarter, Vol. 43 Issue 1, p1 

    A conceptual framework is offered which guides public park and recreation managers on how to minimize resistance to pricing decisions from affected users. The fulcrum of the framework is reference price, which is the benchmark criterion used to evaluate whether or not a new or revised price for...

  • Dynamic Pricing with Loss Averse Consumers and Peak-End Anchoring. Nasiry, Javad; Popescu, Ioana // INSEAD Working Papers Collection;2008, Issue 48, preceding p1 

    We analyze a dynamic pricing problem where consumer's purchase decisions are affected by representative past prices, summarized in a reference price. We propose a new, behaviorally motivated reference price mechanism, based on the peak-end memory model proposed by Fredrickson and Kahneman...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics