The Influences of Price Dispersion and the Manufacturer’S Suggested Price on Consumers’ Boundaries of Acceptable Price: Expected Price As a Mediator

Etta Y. I. Chen, Yuan Ze University, Taiwan
Lien-Ti Bei, National Chengchi University, Taiwan
The phenomenon of price dispersion is often seen on the market; oftentimes, the manufacturer’s suggested price (MSP) is used to stabilize the negative effects of this price dispersion. The results of a 2 × 2 × 2 between-subject experiment design indicate that price dispersion and the MSP influences the boundaries of the expected price. The boundaries of the expected price then fully mediate the effects of price dispersion and the MSP on the boundaries of the acceptable price. However, the effects differ by boundaries. The lower boundary of the expected price mediates the effect of price dispersion on the lower boundary of the acceptable price. In contrast, both boundaries of the expected price mediate the effect of the MSP on the upper boundary of the acceptable price.
[ to cite ]:
Etta Y. I. Chen and Lien-Ti Bei (2010) ,"The Influences of Price Dispersion and the Manufacturer’S Suggested Price on Consumers’ Boundaries of Acceptable Price: Expected Price As a Mediator", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 772-773 .