Effect of Price Estimate Precision on Pre- and Post-Outcome Satisfaction

Melissa Cinelli, University of Mississippi, USA
Lifeng Yang, University of Mississippi, USA
Although consumers prefer price estimates provided on a fine-grained scale (Zhang & Schwarz 2012), we find that precise price estimates are only beneficial when the firm is able to deliver the product below estimate. When outcomes exceed estimates, consumers are more satisfied when initial estimates were provided on a coarse scale.
[ to cite ]:
Melissa Cinelli and Lifeng Yang (2013) ,"Effect of Price Estimate Precision on Pre- and Post-Outcome Satisfaction", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.