Effects of Participative Pricing on Consumers' Cognitions and Actions: A Goal Theoretic Perspective

Using a goal theoretic approach we examine how goal-related mind-sets influence consumers' reactions to participative pricing mechanisms (where consumers participate in price determination; e.g., auctions) relative to economically equivalent, fixed price offers. We show that the congruence between individuals' notions of high-perceived control over shopping situations and participative price environments produces an implementation-oriented mind-set that influences cognitions and intentions. In the absence of such congruence, we can independently create implemental mind-sets that replace the natural deliberative thinking of consumers contemplating a purchase. Demonstrating the subtle yet powerful role mind-sets play in dictating thought and action is a unique contribution of this research. (c) 2005 by JOURNAL OF CONSUMER RESEARCH, Inc..

The Price of "Free"-dom: Consumer Sensitivity to Promotions with Negative Contextual Influences

Past research has shown that monetary promotions (e.g., discounts) are more likely to be processed relative to and integrated with the original product price than are free promotions. We posit that because of this difference, free promotions are more focal and salient than monetary promotions. In a set of three experiments, we demonstrate that this salience results in free promotions being less susceptible than equivalent monetary discounts to negative contextual information on quality that can potentially lower purchase intentions. We show that this effect can be reversed when respondents focus on other pieces of information that diminish the salience of the free promotion. (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..