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.

"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 September 22, 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 September 22, 2014).

Share This



More Mind & Brain News

Monday, September 22, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Could Grief Affect The Immune Systems Of Senior Citizens?

Could Grief Affect The Immune Systems Of Senior Citizens?

Newsy (Sep. 19, 2014) The study found elderly people are much more likely to become susceptible to infection than younger adults going though a similar situation. Video provided by Newsy
Powered by NewsLook.com
Food Addiction Might Be Caused By PTSD

Food Addiction Might Be Caused By PTSD

Newsy (Sep. 18, 2014) New research shows that women who suffer from PTSD are three times more likely to develop a food addiction. Video provided by Newsy
Powered by NewsLook.com
Corporal Punishment on Decline, Debate Renews

Corporal Punishment on Decline, Debate Renews

AP (Sep. 16, 2014) Corporal punishment in the United States is on the decline, but there is renewed debate over its use after Minnesota Vikings running back Adrian Peterson was charged with child abuse. (Sept. 16) Video provided by AP
Powered by NewsLook.com
FDA Eyes Skin Shocks Used at Mass. School

FDA Eyes Skin Shocks Used at Mass. School

AP (Sep. 15, 2014) The FDA is considering whether to ban devices used by the Judge Rotenberg Educational Center in Canton, Massachusetts, the only place in the country known to use electrical skin shocks as aversive conditioning for aggressive patients. (Sept. 15) Video provided by AP
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:
from the past week

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