The Illusion of Double‐Discount: Using Reference Points in Promotion Framing

Double‐discount is an effective format for promoting purchase decisions. However, extant literature has overlooked how temporal order of discounts applied affects consumers’ purchase decisions. In this paper, we show that the sequence of discount magnitude (e.g., 10% followed by 40% vs. 40% followed by 10%) leads to biases in consumer judgment and influences the perceived appeal and purchase intention of the deal. We term this the double‐discount sequence effect. Using four experiments, we showed that double‐discount in an ascending sequence (e.g., taking 10% off, then an additional 40% off) is preferable over that in a descending sequence. We also found that discount application sequence—but not the presentation order—matters to consumers. Consumers anchor on the first discount they encounter and evaluate the second discount with respect to this first one.     

RBF神经网络在股价预测中的应用

提出了一种基于RBF神经网络的股票价格预测模型。该模型通过对历史股价数据的分析,采用K-均值聚类算法动态确定RBF网络中心,根据梯度下降法进行自适应权值调整。并且根据股价的差异大,时变性强和高度非线性的特点,对RBF网络的学习算法进行了改进,进一步提高了RBF网络的非线性映射能力和自适应能力,最后运用该模型对股票走势进行了预测。     

From Global Expressivism to Global Pragmatism

In the twentieth century, questions of meaning and representation played a central role in the development of pragmatism and analytic philosophy. Present‐day neopragmatism, such as Huw Price's “global expressivism,” is often framed in terms of a nonrepresentationalist theory of meaning. While some neopragmatists, such as Robert Brandom, advocate a more local approach, this article argues for taking Price's global expressivism to its next logical step: global pragmatism. Global pragmatism prioritizes the behavior‐guiding function of language and redefines representation in operational terms. This operational approach (“o‐representation”) stresses the action and conduct‐guiding role of language use, highlights the connection between meaning and action, and addresses issues facing Price's global expressivism.     

When Cheap Isn't the Same as Not Expensive: Generic Price Terms and Their Negations

Generic price terms such as cheap, not expensive, not cheap, and expensive are used frequently in marketing, but little is known about how consumers interpret them. In typical consumer contexts, in which lower prices are preferred, we find that not cheap means essentially the same as expensive (i.e., not cheap = expensive). In contrast, not expensive does not mean the same as cheap, in that cheap is associated with lower prices (i.e., cheap < not expensive). As an implication, in a consumer survey we find different response distributions for rating scales that are anchored with endpoint labels of not expensive versus expensive as compared to cheap versus expensive or cheap versus not cheap (the latter two are equivalent). Furthermore, although cheap is associated with lower prices than not expensive, this does not necessarily translate into higher preferences for options that are described as cheap (vs. not expensive), because cheap may also evoke negative quality perceptions. Finally, we demonstrate an interesting reversal in the way price terms are interpreted: when higher prices are preferred, cheap is equal to not expensive (i.e., cheap = not expensive), whereas not cheap is associated with lower prices than expensive (i.e., not cheap < expensive).     

The roles of planning,learning, and mental models in repeated dynamic decision making

Repeated search and decision making is a common consumer activity that should benefit from advanced planning. In three simulated shopping experiments, we find that people often fail to plan spontaneously or, when they do plan, do not use an appropriate mental model of the search problem. We also manipulate the mental models used by subjects and find that while our manipulation successfully encourages the development of appropriate mental models and improves performance when search costs are low, it does not result in the type of sophisticated mental model required to change strategies based on increased search costs. Finally, we show that the benefits of planning generalize to real world shopping behavior in a field experiment.     

Now or Never: Perceptions of Uniqueness Induce Acceptance of Price Increases for Experiences More Than for Objects

Seven studies test and support the prediction that consumers are more willing to accept a price increase for an experiential versus a material purchase; an effect explained by the greater uniqueness of experiences. Critically, the uniqueness model advanced here is found to be independent of the happiness consumers derive from the purchase. To gain a deeper understanding of the uniqueness mechanism, this investigation then advances and tests a four‐facet framework of uniqueness (unique opportunity, unique purchase, unique identity, and counterconformity). Together, the findings converge on the conclusion that consumers perceive the opportunity to have a particular experience (vs. object) as more unique, and this unique opportunity increases their willingness to accept a price increase. Overall, this work extends the experiential versus material purchases literature into a new domain—that of pricing; identifies the dimension—uniqueness—and its precise facet responsible for the effect—unique opportunity; and demonstrates that this model unfolds in a pattern distinct from the oft researched model centered on consumer happiness. Theoretical and practical implications are discussed.     

Malleable conjoint partworths: How the breadth of response scales alters price sensitivity

In one laboratory study and one field study conducted with a large, representative sample of respondents, we show that seemingly innocuous questions that precede a conjoint task, such as demographic and usage-related screening questions can alter the price sensitivities recovered from the main conjoint task. The findings demonstrate that whether these prior questions use broad response categories (i.e., few scale points) or narrow response categories (i.e., many scale points) systematically influences consumers' price sensitivity in a CBC (Choice Based Conjoint) study. We suggest that this may occur because the narrow (vs. broad) response categories in the prior questions lead to consideration of a greater (vs. fewer) number of attributes during the key conjoint task. Since both groups of consumers readily consider the naturally salient price attribute, responding to previous questions with narrow (vs. broad) response categories leads to a greater (vs. fewer) number of non-price attributes being considered, and consequently, decrease the weight afforded to price and reduce price sensitivity.     

To Partition or Not to Partition: Role of Trade-in Price on Consumer Evaluations of Purchases Involving Trade-Ins

Many new purchases involve consumers trading in their old product at the same time, requiring them to assume the dual role of a buyer and a seller in the overall exchange. This research examines how framing the overall exchange as a partitioned transaction with separate prices for the new purchase and the trade-in, or a consolidated transaction with a single net price after accounting for the trade-in price, affects consumer preferences. We find that consumers prefer a partitioned (consolidated) transaction when the relative trade-in price is high (low). Unlike previous explanations based on heuristic processing and differential importance of the trade-in price, our reasoning is that partitioning (vs. consolidating) prices makes salient and enables evaluability of the trade-in price. In the absence of specific referents, consumers rely on the new purchase price to evaluate the merits of the trade-in price. Consistent with our reasoning, we identify boundary conditions for the findings. The presence of a favorable referent for the trade-in and whether the new purchase and the trade-in are (perceived to be) in the same product category attenuate the reliance on the new purchase price as a referent. Our findings have important theoretical and managerial implications.     

Comma N' cents in pricing: The effects of auditory representation encoding on price magnitude perceptions

Numbers and prices can be processed and encoded in three different forms: 1) visual [based on their written form in Arabic numerals (e.g., 72)], 2) verbal [based on spoken word-sounds (e.g., “seventy” and “two”), and 3) analog (based on judgments of relative “size” or amount (e.g., more than 70 but less than 80)]. In this paper, we demonstrate that including commas (e.g., $1599 vs. $1599) and cents (e.g., $1599.85 vs. $1599) in a price's Arabic written form (i.e., how it is perceived visually) can change how the price is encoded and represented verbally in a consumer's memory. In turn, the verbal encoding of a written price can influence assessments of the numerical magnitude of the price. These effects occur because consumers non-consciously perceive that there is a positive relationship between syllabic length and numerical magnitude. Three experiments are presented demonstrating this important effect.