Anchoring Effects on Consumers' Willingness-to-Pay and Willingness-to-Accept

When purchasing products, consumers often need to decide on the highest price they are willing to pay (WTP) and, when selling products, on the lowest price they are willing to accept (WTA). In this research, we contrast the determinants of WTP and WTA judgments and investigate their susceptibility to influence by arbitrary anchors that are unrelated to the product value. Consistent with our analysis, we demonstrate in a series of studies that purchase, but not selling, prices are influenced by arbitrary anchors (e.g., the last two digits of the person's social security number), even when such anchors are rejected as possible purchase/selling prices. Conversely, selling, but not purchase, prices are influenced by arbitrary anchors relating to the perceived market price of the product. The results also indicate that selling prices become sensitive to arbitrary anchors that are considered as possible prices, if the uncertainty about the value of the product to the consumer is made salient. We discuss the implications of these findings with respect to our understanding of the determinants of consumers' willingness-to-pay and willingness-to-accept, value-based pricing, and the anchoring effect.

Recalling Mixed Emotions

In two longitudinal experiments, conducted both in the field and lab, we investigated the recollection of mixed emotions. Results demonstrated that the intensity of mixed emotions is generally underestimated at the time of recall--an effect that increases over time and does not occur to the same degree with unipolar emotions. Of note, the decline in memory of mixed emotions is distinct from the pattern found for memory of negative emotions, implying that the recall bias is diagnostic of the complexity of mixed emotions rather than of any association with negative affect. Finally, the memory decay effect was driven by the felt conflict aroused by the experience of mixed emotions.

Decision making and brand choice by older consumers

Older consumers, Decision making, Choice,