Featured Research

from universities, journals, and other organizations

In-store displays: How do consumers perceive pricing?

Date:
July 20, 2010
Source:
University of Chicago Press Journals
Summary:
A new study unlocks the key to making the price of a product seem less expensive to consumers.

A new study in the Journal of Consumer Research unlocks the key to making the price of a product seem less expensive to consumers.

Related Articles


Consumers tend to perceive products as more expensive when they are grouped with expensive item -- and less expensive when grouped with inexpensive ones, according to authors Marcus Cunha, Jr. and Jeffrey D. Shulman (both University of Washington, Seattle). But the researchers found that marketers can help consumers form more accurate perceptions of prices by helping them create a "discriminating" mindset.

"In three experiments, we examine how perceptions of a price depend on other prices in the set and on whether consumers want to discriminate items or make a general inference about the prices in a product category," the authors write.

Advertisements or displays that elicit a "generalization mindset" can lead consumers to perceive a product price to be closely related to other products in the vicinity. "The opposite price perceptions will occur if a marketer's action encourages consumers to think about the uniqueness of a product in the set," the authors explain. In this case, when the consumer is being discriminating, a given price will be perceived as less expensive if it is viewed in the presence of other high-priced projects and more expensive when viewed in the context of less-expensive products.

As an example, the authors propose a strategy for an in-store display for a new MP3 player that emphasizes how the player is different from its competitors. "Our research shows that this puts consumers in a discrimination mindset," the authors explain. "As a consequence, when examining prices, consumers will focus on the relative differences of the prices leading to a lower-price perception for this MP3 player when it is in a set with more expensive players but to a higher-price perception when it is in a set with less-expensive players.

Marketers should note the way these situational factors affect consumers' judgments, the authors conclude.


Story Source:

The above story is based on materials provided by University of Chicago Press Journals. Note: Materials may be edited for content and length.


Journal Reference:

  1. Marcus Cunha, Jr. and Jeffrey D. Shulman. Assimilation and Contrast in Price Evaluations. Journal of Consumer Research, February 2011

Cite This Page:

University of Chicago Press Journals. "In-store displays: How do consumers perceive pricing?." ScienceDaily. ScienceDaily, 20 July 2010. <www.sciencedaily.com/releases/2010/07/100720123706.htm>.
University of Chicago Press Journals. (2010, July 20). In-store displays: How do consumers perceive pricing?. ScienceDaily. Retrieved November 20, 2014 from www.sciencedaily.com/releases/2010/07/100720123706.htm
University of Chicago Press Journals. "In-store displays: How do consumers perceive pricing?." ScienceDaily. www.sciencedaily.com/releases/2010/07/100720123706.htm (accessed November 20, 2014).

Share This


More From ScienceDaily



More Mind & Brain News

Thursday, November 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Kids React to Lammily, The Realistic Barbie Alternative

Kids React to Lammily, The Realistic Barbie Alternative

Buzz60 (Nov. 19, 2014) Artist Nickolay Lamm's Kickstarter-funded Lammily doll, based on his 'What Would Barbie Look Like as a Real Woman' project, is finally available to buy. Jen Markham explains how the doll's realistic proportions are going over with a test group of second-graders who are used to the impossible measurements of Barbie dolls. Video provided by Buzz60
Powered by NewsLook.com
Trans-Fat Foods Now Linked To Poor Memory

Trans-Fat Foods Now Linked To Poor Memory

Newsy (Nov. 19, 2014) A study presented at the American Heart Association Scientific Sessions shows a link between diets high in trans fats and decreased memory recall. Video provided by Newsy
Powered by NewsLook.com
Creating Lifelong Love of Science and Math

Creating Lifelong Love of Science and Math

AP (Nov. 18, 2014) Kelly Mathews is a new mom on a mission to get girls interested in science, technology, engineering and math, and it starts with her own daughter. The Girl Scouts are doing their part, too, by promoting S.T.E.M. through badges and activities. (Nov. 18) Video provided by AP
Powered by NewsLook.com
3D Fun Improves Child Therapy in Poland

3D Fun Improves Child Therapy in Poland

Reuters - Innovations Video Online (Nov. 17, 2014) Scientists in Poland are helping children with autism and Down's Syndrome better focus on therapeutic exercises by taking them out of their real world environment and into a specially-designed 3D cave in which their imagination can flourish. Jim Drury reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins