Featured Research

from universities, journals, and other organizations

Semantics behind sale price: When does 'original' price matter?

Date:
November 19, 2013
Source:
University of Chicago Press Journals
Summary:
Consumers love a sale. In fact, when asked what makes a sale appealing, most simply say, "The price was good." But this answer fails to acknowledge that subjective factors also contribute to the perceived value of a deal. According to new research, it's possible to increase the perception of a good deal.

Consumers love a sale. In fact, when asked what makes a sale appealing, most simply say, "The price was good." But this answer fails to acknowledge that subjective factors also contribute to the perceived value of a deal. According to new research published in the Journal of Consumer Research, it's possible to increase the perception of a good deal.

Related Articles


"We find that the more a consumer relies on the original price when trying to determine a product's worth, the more valuable they perceive the deal to be," write authors Christina Kan, Donald R. Lichtenstein (both University of Colorado), Susan Jung Grant (Boston University), and Chris Janiszewski (University of Florida). "If a retailer can get a consumer to pay more attention to a $179 original list price, and less attention to a $99 sale price, when assessing the worth of a winter jacket, then the $99 sale price will seem like a better deal."

The study research summarizes three situations in which list prices have more influence on the estimated worth of a product and, by extension, the perceived value of the deal. In three different experiments, the authors reveal that when a consumer focuses on competing product similarities, they are more likely to consider all of the available information when judging the worth of a product. That is, both the original list price and the sale price are used to determine the perceived worth of the product. In contrast, when a consumer focuses on product dissimilarities, the consumer is more likely to consider only the sale price when determining the subjective value of the product.

"This research provides insights for both retailers and consumers. Retailers can make a sales event more effective by encouraging the consumer to rely on the original price when assessing both the value of the product and the value of the deal. Additionally, by comparing product prices at competing retailers, consumers can lessen the impact of the original price on their assessment of the products' overall worth," 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. Christina Kan, Donald R. Lichtenstein, Susan Jung Grant, and Chris Janiszewski. Strengthening the Influence of Advertised Reference Prices through Information Priming. Journal of Consumer Research, April 2014

Cite This Page:

University of Chicago Press Journals. "Semantics behind sale price: When does 'original' price matter?." ScienceDaily. ScienceDaily, 19 November 2013. <www.sciencedaily.com/releases/2013/11/131119193934.htm>.
University of Chicago Press Journals. (2013, November 19). Semantics behind sale price: When does 'original' price matter?. ScienceDaily. Retrieved January 29, 2015 from www.sciencedaily.com/releases/2013/11/131119193934.htm
University of Chicago Press Journals. "Semantics behind sale price: When does 'original' price matter?." ScienceDaily. www.sciencedaily.com/releases/2013/11/131119193934.htm (accessed January 29, 2015).

Share This


More From ScienceDaily



More Mind & Brain News

Thursday, January 29, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Signs You Might Be The Passive Aggressive Friend

Signs You Might Be The Passive Aggressive Friend

BuzzFeed (Jan. 28, 2015) "No, I&apos;m not mad. Why, are you mad?" Video provided by BuzzFeed
Powered by NewsLook.com
City Divided: A Look at Model Schools in the TDSB

City Divided: A Look at Model Schools in the TDSB

The Toronto Star (Jan. 27, 2015) Model schools are rethinking how they engage with the community to help enhance the lives of the students and their parents. Video provided by The Toronto Star
Powered by NewsLook.com
Man Saves Pennies For 65 Years

Man Saves Pennies For 65 Years

Rooftop Comedy (Jan. 26, 2015) A man in Texas saved every penny he found for 65 years, and this week he finally cashed them in. Bank tellers at Prosperity Bank in Slaton, Texas were shocked when Ira Keys arrived at their bank with over 500 pounds of loose pennies stored in coffee cans. After more than an hour of sorting and counting, it turned out the 81 year-old was in possession of 81,600 pennies, or $816. And he&apos;s got more at home! Video provided by Rooftop Comedy
Powered by NewsLook.com
How Technology Is Ruining Snow Days For Students

How Technology Is Ruining Snow Days For Students

Newsy (Jan. 25, 2015) More schools are using online classes to keep from losing time to snow days, but it only works if students have Internet access at home. 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