The Psychology of Trade-Ins in Point-Of-Purchase Decisions: Consumer Price Perceptions When Playing the Dual Role of a Buyer and a Seller

Joydeep Srivastava, University of Maryland
Dipankar Chakravarti, University of Colorado, Boulder
In many transactions that are naturally related or occur together in time, consumers’ point-of-purchase decisions are influenced by their dual roles of buyer and seller (i.e., buying a new car and selling the old one). For such transactions, marketers have a variety of options in which to price and present the overall exchange. This research examines how the pricing of the component transactions influence evaluations and choice, holding net price constant. Because evaluations and choices of otherwise equivalent transactions vary by how component prices are presented, the findings have important theoretical, managerial, and consumer welfare implications.
[ to cite ]:
Joydeep Srivastava and Dipankar Chakravarti (2008) ,"The Psychology of Trade-Ins in Point-Of-Purchase Decisions: Consumer Price Perceptions When Playing the Dual Role of a Buyer and a Seller", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 52-54.