The Effects of Contextual Prices on Consumers’ Brand Evaluation: a Test of Alternative Reference Price Models

Kwanho Suk, Korea University, Korea
Song-Oh Yoon, Korea University, Korea
Sie Yeoun Song, Korea University, Korea
Consumer’s price evaluation is susceptible to contextually presented prices. The existing literature suggests that price evaluation is affected by (1) the range of the context prices, (2) the price rank in the price set, and (3) the average context price. The results of three studies present converging evidence that which feature of the context price plays a more important role is moderated by the type of evaluation task. The range has stronger influence when evaluating attractiveness of a target, whereas either the rank or the average price effect is predominant when deciding on whether or not to purchase a brand.
[ to cite ]:
Kwanho Suk, Song-Oh Yoon, and Sie Yeoun Song (2008) ,"The Effects of Contextual Prices on Consumers’ Brand Evaluation: a Test of Alternative Reference Price Models", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 639-640.