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- Title
Reexamining Latitude of Price Acceptability and Price Thresholds: Predicting Basic Consumer Reaction to Price.
- Authors
Ofir, Chezy
- Abstract
Behavioral pricing research has shown consumers to have lower and upper price thresholds, represented by an inverted U-shaped price acceptability function. We propose another basic reaction to price, namely, "lower price is better," represented by a decreasing acceptability function without a lower price threshold. A set of variables is hypothesized to predict consumer reaction to price. Price consciousness, price-quality relation, and product involvement are shown to influence the shape of the price acceptability function. A procedure and model to scale price acceptability and obtain acceptability functions are introduced and applied. The cumulative results suggest reliable acceptability scales along with evidence for convergent and construct validity.
- Subjects
PRICES; CONSUMER behavior; PRODUCT quality; ADVERTISING; PRICING; CONSUMER preferences; PRICE maintenance; PRICE regulation; PROFIT margins; FAIR-return price; MARGINAL pricing; PRICE cutting
- Publication
Journal of Consumer Research, 2004, Vol 30, Issue 4, p612
- ISSN
0093-5301
- Publication type
Article
- DOI
10.1086/380293