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Future External Reference Prices: You Better Buy Now

By David M. Hardesty


Previous researchers studying the effects that external reference prices have on consumer deal evaluations have only considered the effects of past external reference prices (e.g., WAS $450, NOWS379). 7he current research investigated the effects of future external reference prices (e.g., NOW$379, WILL BE $450) on consumer perceptions of offer fairness and purchase intentions, Specifically, the current research investigated whether future external reference prices have similar positive framing effects on consumer evaluations as past external reference prices. A second purpose of the research was to compare the relative effects of past and future external reference prices. Future external reference prices were found to have positive effects on consumer deal evaluations. Additionally, these effects were more pronounced than those of past external reference prices

Year: 2014
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