When Do Higher Prices Increase Demand? The Dual Role of Price in Consumers\u27 Value Judgments

Drawing on literature on judgment and decision-making, we examine the proposition that price serves two distinct roles in consumers\u27 value judgments. First, as a product attribtute, price affects the perceived similarity of the target product to the mental prototype of a higher or lower quality product. However, price is not the only attribute used to make similarity based quality judgments. Other relevant and available product attributes moderate the effect of price on quality judgments. Second, as a measure of sacrifice, price serves as the benchmark for comparing utility gains from superior product quality. However, this comparison process is dynamic because the relative importance of money and product quality changes across consumption occasions. We present a signal detection model of consumer\u27s price-value judgment to explain how high prices simultaneously increase as well as decrease purchase intentions. We describe how managers can use this model of value judgment to identify situations when higher price may increase demand

Knowledge creation in consumer research: Multiple routes, multiple criteria

The modal scientific approach in consumer research is to deduce hypotheses from existing theory about relationships between theoretic constructs, test those relationships experimentally, and then show â processâ evidence via moderation and mediation. This approach has its advantages, but other styles of research also have much to offer. We distinguish among alternative research styles in terms of their philosophical orientation (theoryâ driven vs. phenomenonâ driven) and their intended contribution (understanding a substantive phenomenon vs. building or expanding theory). Our basic premise is that authors who deviate from the dominant paradigm are hindered by reviewers who apply an unvarying set of evaluative criteria. We discuss the merits of different styles of research and suggest appropriate evaluative criteria for each.Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/141497/1/jcpy473.pd

When Does the Past Repeat Itself? The Interplay of Behavior Prediction and Personal Norms

Does asking people about their future behavior increase or decrease the likelihood that they will repeat their past behavior? In two laboratory and two field experiments, we find that behavior prediction strengthens behavior repetition, making people more likely to do what they normally do, when personal norms regarding engaging in a behavior are weak or not easily accessible. However, when personal norms are strong or made accessible at the time of the prediction request, behavior prediction weakens behavior repetition and increases the likelihood that people do what they think they should do-even if it's not what they normally would do. These findings provide new tools for influencing behavior repetition, reconcile some seemingly contradictory past findings, and contribute to the debate regarding the relative importance of habits and intentions in guiding behavior. T he repetition of unhealthy behaviors (such as overeating) and the lack of repetition of healthy behaviors (such as exercising) are leading contributors to preventable deaths in developed countrie

Advertising Bans and the Substitutability of Online and Offline Advertising

The authors examine whether the growth of the Internet has reduced the effectiveness of government regulation of advertising. They combine nonexperimental variation in local regulation of offline alcohol advertising with data from field tests that randomized exposure to online advertising for 275 different online advertising campaigns to 61,580 people. The results show that people are 8% less likely to say that they will purchase an alcoholic beverage in states that have alcohol advertising bans compared with states that do not. For consumers exposed to online advertising, this gap narrows to 3%. There are similar effects for four changes in local offline alcohol advertising restrictions when advertising effectiveness is observed both before and after the change. The effect of online advertising is disproportionately high for new products and for products with low awareness in places that have bans. This suggests that online advertising could reduce the effectiveness of attempts to regulate offline advertising channels because online advertising substitutes for (rather than complements) offline advertising.Google (Firm)WPP (Firm

Marketing extends beyond humans

This comment seeks to answer the following question. Is marketing - as most marketing textbooks define the term - something that is limited to humans, or do other non-human species also engage in marketing? To answer this question this comment reviews literature on animal behavior which suggests that at least some non-human animals do engage in exchange processes in order to mutually satisfy needs and wants. This comment therefore concludes that marketing is an activity that extends beyond humans to other members of the animal kingdom.