The Presence of Reference Price: How Value Can Appear Convergent to Buyers and Sellers
The Presence of Reference Price: How Value Can Appear Convergent to Buyers and Sellers
Chien-Huang Lin, National Central University
Shin-Chieh Chuang, Chao-yang University of Technology
Chaang-Yung Kung, Chao-yang University of Technology
Abstract
This paper argues that the endowment effect--the tendency of minimum selling price to exceed maximum buying price for a particular object--might be minimized when a reference price appears. The findings from 418 participants in two experiments support our hypothesis: the endowment effect would be smaller when the reference price is available. The importance of reference price is thus highlighted.Citation:
Shin-chieh Chuang (2006) ,"The Presence of Reference Price: How Value Can Appear Convergent to Buyers and Sellers", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 237-241.
Authors
Shin-chieh Chuang, a Department of Business Administration, Chao-yang University of Technology ,Taiwan
Volume
NA - Advances in Consumer Research Volume 33 | 2006
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