Deep Discount Or Free? the Effects of Price Promotion on Willingness to Pay

We contrast promotions in which a product is offered for free to promotions in which it is offered for a low price. Drawing on anchoring and adjustment, we show in two studies that a low price reduces reservation prices more than a zero price.



Citation:

Mauricio Palmeira and Joydeep Srivastava (2011) ,"Deep Discount Or Free? the Effects of Price Promotion on Willingness to Pay", in AP - Asia-Pacific Advances in Consumer Research Volume 9, eds. Zhihong Yi, Jing Jian Xiao, and June Cotte and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 233-233.

Authors

Mauricio Palmeira, Monash University, Australia
Joydeep Srivastava, University of Maryland, USA



Volume

AP - Asia-Pacific Advances in Consumer Research Volume 9 | 2011



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