Featured Research

from universities, journals, and other organizations

How do consumers compare prices? It depends on how powerful they feel

Date:
September 10, 2013
Source:
Journal of Consumer Research, Inc.
Summary:
Your reaction to the price on a bottle of wine or another product is partly a response to how powerful you feel, according to a new study.

Your reaction to the price on a bottle of wine or another product is partly a response to how powerful you feel, according to a new study in the Journal of Consumer Research.

Related Articles


"The degree to which one feels powerful influences which type of price comparison threatens their sense of self-importance and, in turn, affects the perception of price unfairness," write authors Liyin Jin, Yanqun He (both Fudan University), and Ying Zhang (University of Texas, Austin).

Variations in price are common in today's market, the authors explain, but companies risk consumers' wrath when those customers perceive unfairness. According to the authors, consumers have two main ways of evaluating the fairness of a price: they compare with what they've paid for the same item in the past (self-comparison) or they ask how the price compares with what other customers are paying (other-comparison). The authors looked at the ways consumers' self-perceptions affected their reactions to the two kinds of comparisons.

In one study, the authors found that participants who felt powerful experienced more unfairness when it appeared that they were paying more than others. But people who did not feel powerful experienced more unfairness when they used self-comparisons. The study also revealed that "high-power" participants were more likely to get angry about unfairness and indicated they were more likely to complain about the perceived unfairness. Meanwhile the "low-power" individuals were more likely to feel sad and to use tactics to avoid thinking about the unfair price.

"Our findings suggest important ways that marketing professionals can engage customers of different power statuses," the authors write. "For example, when marketing to high-power customers, one can better elicit preference by highlighting the special treatment that they are receiving in relation to other customers. Conversely, when the target customers are relatively low in power, loyalty may be better cultivated by highlighting the consistency in service or the level of commitment to these customers."


Story Source:

The above story is based on materials provided by Journal of Consumer Research, Inc.. Note: Materials may be edited for content and length.


Journal Reference:

  1. Liyin Jin, Yanqun He, Ying Zhang. How Power States Influence Consumers’ Perceptions of Price Unfairness. Journal of Consumer Research, February 2014

Cite This Page:

Journal of Consumer Research, Inc.. "How do consumers compare prices? It depends on how powerful they feel." ScienceDaily. ScienceDaily, 10 September 2013. <www.sciencedaily.com/releases/2013/09/130910112842.htm>.
Journal of Consumer Research, Inc.. (2013, September 10). How do consumers compare prices? It depends on how powerful they feel. ScienceDaily. Retrieved November 24, 2014 from www.sciencedaily.com/releases/2013/09/130910112842.htm
Journal of Consumer Research, Inc.. "How do consumers compare prices? It depends on how powerful they feel." ScienceDaily. www.sciencedaily.com/releases/2013/09/130910112842.htm (accessed November 24, 2014).

Share This


More From ScienceDaily



More Mind & Brain News

Monday, November 24, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Winter Can Cause Depression — Here's How To Combat It

Winter Can Cause Depression — Here's How To Combat It

Newsy (Nov. 23, 2014) Millions of American suffer from seasonal depression every year. It can lead to adverse health effects, but there are ways to ease symptoms. Video provided by Newsy
Powered by NewsLook.com
Could Your Genes Be The Reason You're Single?

Could Your Genes Be The Reason You're Single?

Newsy (Nov. 21, 2014) Researchers in Beijing discovered a gene called 5-HTA1, and carriers are reportedly 20 percent more likely to be single. Video provided by Newsy
Powered by NewsLook.com
Milestone Birthdays Can Bring Existential Crisis, Study Says

Milestone Birthdays Can Bring Existential Crisis, Study Says

Newsy (Nov. 21, 2014) Researchers find that as people approach new decades in their lives they make bigger life decisions. Video provided by Newsy
Powered by NewsLook.com
You Don't Have To Be Alcohol Dependent To Need Treatment

You Don't Have To Be Alcohol Dependent To Need Treatment

Newsy (Nov. 21, 2014) A study by the Centers for Disease Control and Prevention found 9 out of 10 excessive drinkers in the country are not alcohol dependent. 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