Price on the Top of the Price: Effect of Sales Tax and Product Price on Consumers’ Estimates of the Total Purchase Price

Igor Makienko, Universty of Nevada, Reno, USA
If consumers are well aware of sale taxes but do not see them on price tags does this mean that they are not influenced by this universal surcharge when they estimate the total purchase price? In our research we explore the impact of sale taxes on consumers’ estimations of the total purchase price in traditional retail settings and suggest that price level will moderate the impact of sale taxes on consumers’ estimations of the total purchase price.
[ to cite ]:
Igor Makienko (2011) ,"Price on the Top of the Price: Effect of Sales Tax and Product Price on Consumers’ Estimates of the Total Purchase Price ", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 900.