An Integrated Model of Reference Prices and Their Impact on Satisfaction

Felix Tang, Hang Seng School of Commerce, Hong Kong, China
Jianmin Jia, Chinese University of Hong Kong, Hong Kong, China
This article develops a satisfaction model that incorporates the concepts of types of reference prices, perceived fairness, retrospective regret, and disappointment. An experiment was conducted to generate the price variations along the consumer, firm, and time dimensions of reference price. The finding suggested that the influence of reference prices on satisfaction is mediated by fairness, regret, and disappointment. The influence of across-consumer reference price on customer satisfaction is larger than that of across-time or across-firm reference price. The finding also indicated that existing satisfaction models that ignore regret and models that only measure regret may have inflated estimators.
[ to cite ]:
Felix Tang and Jianmin Jia (2010) ,"An Integrated Model of Reference Prices and Their Impact on Satisfaction", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 509-510 .