Featured Research

from universities, journals, and other organizations

Buying a used car? Be sure to flatter the seller

Date:
July 26, 2013
Source:
University of Chicago Press Journals
Summary:
Consumers set high prices when selling their possessions because they feel threatened, according to a new study.

Consumers set high prices when selling their possessions because they feel threatened, according to a new study in the Journal of Consumer Research.

Related Articles


"When consumers consider selling a product they own, they feel threatened by the impending loss. In order to counter this threat, they increase the product's value," write authors Promothesh Chatterjee (University of Kansas), Caglar Irmak (University of Georgia), and Randall L. Rose (University of South Carolina).

Due to a phenomenon called the "endowment effect," consumers seek much higher prices when selling a product they own than they would be willing to pay to purchase the same product.

In one study, consumers were assigned either a seller or buyer role and presented with a coffee mug. Sellers were told they could keep the mug or sell it, while buyers were asked to evaluate the mug. Then, both sellers and buyers were shown a series of words on a computer screen consisting of threat-related words (endanger), neutral words (wood), and non-words (tlun). Sellers responded to threat-related words much more quickly than buyers, and this difference in their response time led to significantly higher selling prices compared to buying prices.

Consumers should be aware that sellers can feel threatened when parting with even the most mundane possessions. Complimenting or flattering a seller can make them feel less threatened and lead them to lower their selling prices.

"Affirming a seller leads to elimination of the endowment effect. Buyers may want to affirm sellers to make them feel less threatened by the loss of a possession and therefore willing to set lower prices. Next time you are buying a second-hand car, for example, you may want to start the negotiation by telling the car owner what a wonderful family she has," 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. Promothesh Chatterjee, Caglar Irmak, and Randall L. Rose. The Endowment Effect as Self-Enhancement in Response to Threat. Journal of Consumer Research, October 2013

Cite This Page:

University of Chicago Press Journals. "Buying a used car? Be sure to flatter the seller." ScienceDaily. ScienceDaily, 26 July 2013. <www.sciencedaily.com/releases/2013/07/130726131256.htm>.
University of Chicago Press Journals. (2013, July 26). Buying a used car? Be sure to flatter the seller. ScienceDaily. Retrieved October 25, 2014 from www.sciencedaily.com/releases/2013/07/130726131256.htm
University of Chicago Press Journals. "Buying a used car? Be sure to flatter the seller." ScienceDaily. www.sciencedaily.com/releases/2013/07/130726131256.htm (accessed October 25, 2014).

Share This



More Mind & Brain News

Saturday, October 25, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Academic Scandal Shocks UNC

Academic Scandal Shocks UNC

AP (Oct. 23, 2014) A scandal involving bogus classes and inflated grades at the University of North Carolina was bigger than previously reported, a new investigation found. (Oct. 23) Video provided by AP
Powered by NewsLook.com
Working Mother Getaway: Beaches Turks & Caicos

Working Mother Getaway: Beaches Turks & Caicos

Working Mother (Oct. 22, 2014) Feast your eyes on this gorgeous family-friendly resort. Video provided by Working Mother
Powered by NewsLook.com
What Your Favorite Color Says About You

What Your Favorite Color Says About You

Buzz60 (Oct. 22, 2014) We all have one color we love to wear, and believe it or not, your color preference may reveal some of your character traits. In celebration of National Color Day, Krystin Goodwin (@kyrstingoodwin) highlights what your favorite colors may say about you. Video provided by Buzz60
Powered by NewsLook.com
First-Of-Its-Kind Treatment Gives Man Ability To Walk Again

First-Of-Its-Kind Treatment Gives Man Ability To Walk Again

Newsy (Oct. 21, 2014) A medical team has for the first time given a man the ability to walk again after transplanting cells from his brain onto his severed spinal cord. Video provided by Newsy
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