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Author: | Kopalle, P.K. Lindsey-Mullikin, J. |
Title: | The impact of external reference price on consumer price expectations |
Journal: | Journal of Retailing
2003 : VOL. 79:4, p. 225-236 |
Index terms: | Consumer behaviour Expectations Pricing |
Language: | eng |
Abstract: | A quadratic model is specified for the impact of external reference price (ERP) on consumer price expectations. The authors hypothesize a quadratic effect of external reference prices on consumer price expectations based on the research on communication discrepancy and advertising claim discrepancy, which in turn draw on assimilation-contrast, attribution and prospect theories. An interactive, computer-controlled experiment using multiple levels of ERP is used to estimate the proposed model. |
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