Who I am and how I think: The impact of self‐construal on the roles of internal and external reference prices in price evaluations

Drawing from self-construal studies on cognitive styles as well as reference price literature, this research investigates the impact of independent versus interdependent self-construal on consumers' use of internal reference prices (IRPs) and external reference prices (ERPs) during price evaluations. Three experiments reveal that IRPs have a larger impact on price evaluations for participants who are primed with an independent (vs. interdependent) self-construal, whereas ERPs have a larger impact for participants who are primed with an interdependent (vs. independent) self-construal. The differential impact of self-construal on the use of IRPs and ERPs seems to be mediated by a generalized, perceived sense of connectedness/separateness. Implications on reference price research, self-construal and cognitive styles are discussed.