The Persuasive Power of Quality: Consumers’ Misprediction of Their Reactions to Price Promotions
Consumers often need to predict how they would react to changes in price or quality. Results from six experiments indicate that consumers often overestimate the relative impact of quality differences on their consumption decisions. Consumers underestimate their sensitivity to promotions on low quality products, overestimate their sensitivity to promotions on high quality products, and overestimate the general effect of quality on the amount they will consume. We conclude that consumers’ predictions rely on an abstract image of themselves as principled consumers and ignore pragmatic realities, such as the need to consume more low quality products to achieve the same level of utility.
Cenk Bulbul and Tom Meyvis (2007) ,"The Persuasive Power of Quality: Consumers’ Misprediction of Their Reactions to Price Promotions", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 265-268.
Cenk Bulbul, New York University, USA
Tom Meyvis, New York University, USA
NA - Advances in Consumer Research Volume 34 | 2007
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