Size Does Matter: The Effects of Magnitude Representation Congruency on Price Perceptions and Purchase Likelihood

The numerical cognition literature suggests that numerical stimuli (and hence prices) are represented and encoded in memory as magnitude representations (i.e., judgments of relative “size”). The magnitude representation associated with the numerical value of a price may be the same as (congruent) or different from (incongruent) the magnitude representation associated with some other related dimension. We conducted 3 experiments to examine the effects of congruent versus incongruent magnitude representations on price perceptions and purchase intentions. We find that congruent magnitude representations result in more favorable price knowledge (i.e., greater value perceptions and lower price judgments) and increased purchase likelihood. Our findings suggest that consumers are not consciously aware of the role of magnitude representations in influencing price perceptions.     

Judgments about judgments: the dissociation of consideration price and transaction commitment judgments

There are many contexts in which people make judgments about prior judgments. For example, Internet shopping bots (e.g., NexTag.com) allow consumers to search for products and, if the price is too high, list a price at which they would consider making the purchase (i.e., base judgment). If the price drops to this level, the vendor generates an e-mail inviting the consumer to execute the transaction at the reduced price (i.e., contingent judgment). The authors show that the consideration price depends on the content of retrieved information, whereas the willingness to execute the transaction at the consideration price depends on the ease-of-retrieving the information. The authors use different offer prices to encourage the consumer to retrieve information consistent with different product quality levels. The authors also select offer prices so that information retrieval is more difficult at moderate offer prices than at high or low offer prices. Accordingly, the authors show that the consideration price increases as the offer price increases, but the willingness to execute the transaction at the consideration price is greater when there are high and low, as opposed to moderate, offer prices.     

How do we process prices? Electrophysiological evidence of componential analysis

The aim of this study was to evaluate if the processing of prices (e.g., 8 euro) involves separate analysis of the digit (8) and the monetary category (euro). Event-related potentials (ERPs) were recorded when participants performed a price comparison task in which a pair of prices was presented and they selected the one with higher monetary value. There were compatible comparisons where the digit and the monetary category of one price were higher than those of the other price (e.g., 7 euro – 4 cent, 7 > 4 and euro > cent), and incompatible comparisons where the number of one price was larger but the monetary category smaller than those of the other price (e.g., 4 euro – 7 cent, 4 < 7 but euro > cent). Compatibility effect modulated ERPs in the 350–450 ms time window, with more negative amplitudes in incompatible trials relative to compatible trials. This pattern of results suggests that prices were processed in a componential manner, challenging the evidences of the holistic model. The results of this study agree with the general model framework for multi-symbol number comparison: The constituents of a multi-symbol magnitude are processed and compared to each other separately in a componential manner.     

Assessing unit-price related remifentanil choice in rhesus monkeys

Given a commodity available at different prices, a unit-price account of choice predicts preference for the cheaper alternative. This experiment determined if rhesus monkeys preferred remifentanil (an ultra-short-acting micro-opioid agonist) delivered at a lower unit price over a higher-priced remifentanil alternative (Phases 1 and 3). Choice between equal-priced alternatives also was assessed (Phase 2). A discrete-trials procedure was arranged in which three monkeys chose between two remifentanil alternatives by responding on one of two levers. Different prices were arranged by manipulating drug dose (0.3 and 0.1 microg/kg/injection) and/or the ratio requirement. Monkeys usually chose the larger-dose alternative even when it was more expensive. Only when unit prices were relatively high (e.g., large response requirements) did monkeys choose the cheaper (or equally priced) smaller-dose alternative. Employing larger doses (0.9 and 0.3 microg/kg/injection) attenuated the larger-dose preference. The results demonstrate that choice was not determined simply by unit price. An alternative model that employs demand-function analysis to generate choice predictions is proposed.     

Low‐price guarantees as advertisement strategy and compensation policy: The more,the better?

Companies sometimes employ a “lowest price or more than the difference back” policy (i.e., a price‐beating guarantee). We investigated whether such a policy is more effective to attract and retain customers than when the exact price difference is promised (i.e., a price‐matching guarantee). The first study revealed that about 60% of the marketers and shop owners in our sample thought that beating price differences is a more effective strategy than matching price differences. However, the four subsequent studies challenged this assumption. Specifically, the advertisement as well as the provision of price‐beating refunds did not have an incremental positive effect on customers' general attitudes in terms of trust, brand perception, loyalty, and shopping intentions beyond the level that was already reached by price‐matching refunds. Moreover, our mediation analyses revealed that the null effect of price‐matching versus price‐beating was mediated by fairness perceptions. From a theoretical perspective, these results are in line with a fairness account, which holds that people do not only evaluate the economic value of an outcome, but also take equality considerations into account. Because price‐beating is literally more expensive than price‐matching, from a practical point of view, companies should be informed that the employment of a price‐beating guarantee is a cost‐ineffective advertisement strategy and compensation policy.     

How does preference reversal appear and disappear? Effects of the evaluation mode

Preference reversal is a systematic change in the preference order between options when different response methods are used (e.g., choice vs. judgment). The present study focuses on procedures used to elicit preferences according to an evaluability hypothesis. Two experiments compared joint vs. separate evaluations and explicit vs. non‐explicit joint evaluations. Subjects had to express preferences between high‐variance gambles (HVGs) and low‐variance gambles (LVGs) either by choosing one gamble to play in a lottery or by assigning gambles minimum selling prices. We show that HVGs are preferred in both choice and pricing conditions when gambles are evaluated separately, and LVGs are preferred in both choice and selling conditions when gambles are evaluated in pairs: i.e., when the evaluation mode is held constant, classic preference reversal disappears. These results support the evaluability hypothesis, and suggest that preferences depend on whether subjects are allowed to compare the options they are asked to choose from or judge, independently of the nature of the scale (i.e., attractiveness vs. minimum selling price) they are required to adopt. Copyright © 2004 John Wiley & Sons, Ltd.     

Moral reasoning,emotion understanding,and callous-unemotional traits in early-to-middle childhood

Relatively little is known about features of moral reasoning among young children with callous-unemotional (CU) traits (e.g., lack of guilt and empathy). This study tested associations between CU traits and emotion attributions (i.e., identification of others’ emotional states) and justifications (i.e., explanations for those emotional states), across social scenarios involving discreet versus salient distress cues. The participants were boys aged 6-to-10 years (N = 50; M_age = 7 years 7 months), who were interviewed about 12 hypothetical scenarios (eight with discreet and four with salient distress cues). Regression models indicated that CU traits, in interaction with high levels of antisocial behaviour, were associated with reduced emotion attributions of fear in discreet but not salient immoral scenarios. Higher CU traits were also associated with reduced justifications referencing others’ welfare in discreet scenarios, and increased references to action-orientated justifications in salient scenarios. These findings suggest that CU traits are associated with early moral reasoning impairments and that salience of distress may be important to these processes.     

Price‐Matching Guarantees and Consumer Evaluations of Price Information

In 3 experiments, we show that price‐matching guarantees affect the process through which consumers translate price information into subjective judgments. In Experiment 1, we find that price‐matching guarantees appear to change the standard used in price evaluation by raising consumers’ estimates of the lowest and average prices in the market. This leads consumers to perceive products and stores that offer price‐matching guarantees as less expensive. In Experiment 2, we show that evaluations of product price information are affected by the presence of a price‐matching guarantee only when consumers do not know the range of market prices. In Experiment 3, we extend these findings to show that consumer evaluations of the cost of products in a store, inferred on the basis of store characteristics, are also influenced by the presence of a price‐matching guarantee.     

Buying/Selling Price Preference Reversals: Preference for Environmental Changes in Buying versus Selling Modes

Many studies have shown that the most people are willing to pay to obtain an object often is significantly less than the least they will accept to relinquish the object (i.e., selling prices tend to be higher than buying prices). Most tests of the buying/selling price discrepancy have elicited values either for everyday market items (e.g., mugs, candy bars) or for environmental changes (e.g., a decrease in air quality, a landfill clean-up). The literature indicates a possible interaction between buying/selling prices and commodity type; buying/selling price differences seem greater for environmental improvements than for market items. In other words, people show more relative preference for environmental improvements in selling modes than they do in buying modes. A significant difference in preference due to elicitation mode is commonly termed a "preference reversal." The four experiments presented here establish this new preference reversal and examine the reasons for it. The results from these studies provide information about the nature of preference reversals, the valuation process as a whole, and the unique problem of valuing complex and risky items such as environmental changes.     

Adolescents’ Social Environment and Depression: Social Networks, Extracurricular Activity, and Family Relationship Influences

The present study examined components of adolescents’ social environment (social network, extracurricular activities, and family relationships) in association with depression. A total of 332 adolescents presenting for a routine medical check-up were self-assessed for social network risk (i.e., smoking habits of best male and female friends), extracurricular activity level (i.e., participation in organized sports teams, clubs, etc.), family relationship quality (i.e., cohesion and conflict), and symptoms of depression (i.e., minimal, mild, moderate/severe). Results of a forward linear regression modeling indicate that social environment components were associated with a significant proportion of the variance in adolescent depression (Adjusted R ² = .177, p ≤ .05). Specifically, adolescent females (β = .166, p < .01) and those having more smokers in their social network (β = .107, p < .05) presented with significantly greater depression symptoms. Conversely, adolescents who engaged in more extracurricular activities (β = −.118, p < .05) and experienced higher quality family relationships (β = −.368, p < .001) presented with significantly lower depressive symptoms. These findings highlight the important role that the social environment plays in adolescent depression, as well as yields new insights into socially-based intervention targets that may ameliorate adolescent depression. These intervention targets may be gender-specific, include positive social network skills training, increase adolescents’ engagement in organized activities, and attend to the quality of their family relationships.     

Behavior analysis in consumer affairs: Retail and consumer response to publicizing food price information

A popular program among consumer action groups involves publicizing comparative food price information (CFPI) gathered from retail stores. Its significance is based on the assumption that publishing CFPI maximizes retail competition (i.e., moderates price levels or price increases) and occasions more frugal store selections among consumers. We tested these assumptions during a 2-year analysis. Specifically, we monitored the prices of two distinct market baskets in the supermarkets of two midwestern cities (target and contrast cities). Following a lengthy baseline, we published the prices of only one of the market baskets at stores in the target city in the local newspaper on five different occasions. The results suggested that reductions in price inflation occurred for both market baskets at the independently operated target stores. The corporate chain stores were not similarly affected. In addition, surveys indicated that many consumers used the CFPI as a basis for store selection. Finally, the analysis included a discussion of the politics, economics, and future of CFPI programs.     

Three predictions of the economic concept of unit price in a choice context

Economic theory makes three predictions about consumption and response output in a choice situation: (a) When plotted on logarithmic coordinates, total consumption (i.e., summed across concurrent sources of reinforcement) should be a positively decelerating function, and total response output should be a bitonic function of unit price increases; (b) total consumption and response output should be determined by the value of the unit price ratio, independent of its cost and benefit components; and (c) when a reinforcer is available at the same unit price across all sources of reinforcement, consumption should be equal between these sources. These predictions were assessed in human cigarette smokers who earned cigarette puffs in a two-choice situation at a range of unit prices. In some sessions, smokers chose between different amounts of puffs, both available at identical unit prices. Individual subjects' data supported the first two predictions but failed to support the third. Instead, at low unit prices, the relatively larger reinforcer (and larger response requirement) was preferred, whereas at high unit prices, the smaller reinforcer (and smaller response requirement) was preferred. An expansion of unit price is proposed in which handling costs and the discounted value of reinforcers available according to ratio schedules are incorporated.     

How valuable is a well‐crafted design and name brand?: Recognition and willingness to pay

Preferences for similarly designed consumer products, evaluated blind and branded and also with and without prices, were tested in a consumer setting. The consumer's perceptual experience led to preference of the well‐crafted high‐priced option. This preference was enhanced by priming consumers with background information about the brand, perhaps causing the subjects to guess which choice was the well‐known brand before evaluation. Preferences for that choice increased again when brand names were visible during evaluation. When actual prices were added to the evaluations, preferences for the well‐known brand were very robust to high prices, indicating the strength of the brand name. Using the least preferred option and the lowest price as an anchor, the consumers' price threshold to pay for the preferred design and the brand name was computed. Attempts to explain and predict individual differences of choices using measures of inherent design acumen, prior experience, and purchasing behavior were largely unsuccessful. Copyright © 2011 John Wiley & Sons, Ltd.     

Paying the Way: The Ticket to Gender Equality in Sports

Past research shows that consumers tend to equate higher prices with higher value. However, it remains unclear whether consumers of athletic events follow the predictions of equity theory when attributing value to particular teams. We conducted 3 studies to investigate the existence and consequences of a disparity between men's and women's college basketball ticket prices. In Study 1, a survey of 303 NCAA Division I programs demonstrated that the gender of a basketball team is a primary indicator of the price of a ticket, such that women's tickets are significantly less expensive than men's tickets nationwide, even after controlling for a number of contextual factors (e.g., win–loss records, size of the schools). Consistent with equity theory, Studies 2 and 3 revealed that such a price disparity can result in lower evaluation of women's teams than men's. These findings indicate a need to consider the costs and benefits of maintaining differences in ticket prices within a context of gender inequity.     

How consumers respond to missing a quantity discount with multiple price breaks

This study investigates how consumers evaluate and respond to different discount schemes (i.e., one versus multiple price breaks) in the wake of a missed quantity discount. Two field experiments are conducted. The results demonstrate that promotions with multiple price breaks (e.g., 2 for 30% off and 3 for 40% off) will result in a higher likelihood of purchasing one item at the regular price than promotions with only a single price break (e.g., 2 for 30% off) when a quantity discount is missed. The results of Experiment 2 reveal that increasing the number of price breaks (i.e., from two to three) can strengthen the assimilation of the advertised regular price into consumers' internal reference price range when there is a greater interval between the two price breaks (e.g., 2 for 30% off, 5 for 40% off, and 8 for 50% off) and that subsequently raises consumers' purchase likelihood if they are not able to take advantage of the promotional price. Finally, the effect of the discount scheme on purchase likelihood is shown to be mediated by the internal reference price. These observations have important implications for retailers. Copyright © 2016 John Wiley & Sons, Ltd.     

Sport type and interpersonal and intrapersonal predictors of body dissatisfaction in high school female sport participants

Through multiple group structural equation modeling analyses, path models were used to test the predictive effects of sport type and both interpersonal (i.e., mothers’ body dissatisfaction, family dynamics) and intrapersonal factors (i.e., athletic self-efficacy, body mass index [BMI]) on high school female sport participants’ (N = 627) body dissatisfaction. Sport types were classified as esthetic/lean (i.e., gymnastics), non-esthetic/lean (i.e., cross-country), or non-esthetic/non-lean (i.e., softball). Most participants reported low body dissatisfaction, and body dissatisfaction did not differ across sport types. Nevertheless, mothers’ body dissatisfaction was positively associated with daughters’ body dissatisfaction for non-esthetic/lean and non-esthetic/non-lean sport participants, and high family cohesion was predictive of body dissatisfaction among non-esthetic/lean sport participants. Across sport types, higher BMI was associated with greater body dissatisfaction, whereas greater athletic self-efficacy was associated with lower body dissatisfaction. These findings highlight the complex relationship between interpersonal and intrapersonal factors and body dissatisfaction in adolescent female sport participants.     

Social Network Characteristics,Social Support,and Cigarette Smoking among Asian/Pacific Islander Young Adults

Cigarette smoking may be one of the factors contributing to the high levels of cancer‐related mortality experienced by certain Asian/Pacific Islander (A/PI) subgroups (e.g., Native Hawaiian). Given the collectivist cultural orientation attributed to A/PI groups, social strategies are recommended for substance abuse or smoking cessation treatment among A/PI. However, research examining how social network characteristics and social support relate to smoking across A/PI subgroups has been lacking. This study investigated the associations between social network characteristics (e.g., size, composition), perceived social support, and recent cigarette use across Native Hawaiian, Filipino, and East Asian (e.g., Japanese, Chinese) young adults (18–35 year old). Cross‐sectional, self‐report data were collected from N = 435 participants (M age = 25.6, SD = 8.3; 61% women). Ethnic differences were found in a number of pathways linking social network characteristics, perceived social support, and cigarette smoking. Larger network size was strongly associated with higher perceived social support and lower recent cigarette smoking among Native Hawaiians but not Filipinos or East Asians. Higher perceived social support was associated with lower recent smoking among East Asians and Filipinos but not Native Hawaiians. Implications are discussed with regard to smoking prevention and cessation among A/PI.     

Motivations for social withdrawal and academic adjustment in emerging adulthood

While social withdrawal in childhood is typically associated with lower academic functioning, little is known about how motivations for social withdrawal may be connected to academic adjustment in emerging adulthood. The purpose of the present study was to examine associations between social withdrawal motivations (i.e., shyness, avoidance and unsociability) and indices of academic adjustment, including academic achievement (i.e., grade point average [GPA]) and academic motivation (i.e., intrinsic value, self-efficacy and test anxiety), while accounting for gender and conscientiousness. Participants were 623 emerging adults between the ages of 18 and 25 (M_age = 20.15, SD = 1.67; 79% female) who were currently attending university. Hierarchical regression results showed that shyness was negatively associated with intrinsic value and self-efficacy. Whereas shyness was positively associated with test anxiety, avoidance was negatively associated with test anxiety. Social withdrawal motivations were not associated with GPA. The findings suggest that some motivations for social withdrawal play a role in university students’ academic motivation, but not their academic achievement.     

Friendship and romance across the U.S. political divide: Hindrance or help for outgroup political attitudes?

Consistent with the intergroup contact literature, cross-political relationships (e.g., friendships or romantic relationships between different partisans) may help reduce inter-political group prejudice. Given that unfavorable attitudes based on the political group membership are particularly heightened at present in the United States, we explored whether having cross-political friendships (Study 1) or romantic relationships (Study 2) predict more positive interpersonal or intergroup attitudes among American Democrats and Republicans. In Study 1, using a social network measure (N = 301), where participants reported on their closest friends, cross-political (versus same-political) friendship was associated with less positive interpersonal attitudes when this relationship was unsatisfying. Having any (versus no) or more (versus less) cross-political group friendships was not associated with holding more positive intergroup attitudes. In Study 2, cross-political romantic relationships were examined (N = 392). Having a cross- (versus same-) political romantic relationship was associated with relatively less positive attitudes toward the political outgroup via lower empathy when relationship satisfaction was low. Study findings highlight the potential limitations of the beneficial effects of intergroup contact.