Is That Bargain Worth My Time?

Ritesh Saini, George Mason University, USA
Raghunath Singh Rao, The University of Texas at Austin, USA
Ashwani Monga, University of South Carolina, USA
Prior research on relative thinking suggests that the willingness to seek a bargain depends not only on the absolute value of the bargain, but also on the price of the product. For example, a discount of $10 seems more appealing if the price is $20 rather than $60. We invoke the interactive role of consumers’ reference prices to delineate the conditions in which relative thinking holds and in which it gets reversed. Our novel predictions arise from an analytical model and are supported in a series of laboratory experiments.
[ to cite ]:
Ritesh Saini, Raghunath Singh Rao, and Ashwani Monga (2009) ,"Is That Bargain Worth My Time?", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 563-564.