Is That Bargain Worth My Time?
Prior research on relative thinking suggests that the willingness to seek a bargain depends not only on the absolute value of the bargain, but also on the price of the product. For example, a discount of $10 seems more appealing if the price is $20 rather than $60. We invoke the interactive role of consumers’ reference prices to delineate the conditions in which relative thinking holds and in which it gets reversed. Our novel predictions arise from an analytical model and are supported in a series of laboratory experiments.
Citation:
Ritesh Saini, Raghunath Singh Rao, and Ashwani Monga (2009) ,"Is That Bargain Worth My Time?", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 563-564.
Authors
Ritesh Saini, George Mason University, USA
Raghunath Singh Rao, The University of Texas at Austin, USA
Ashwani Monga, University of South Carolina, USA
Volume
NA - Advances in Consumer Research Volume 36 | 2009
Share Proceeding
Featured papers
See MoreFeatured
H5. Being Looked Up or Being Looked Down? The Divergent Effects of Camera Angle on Nonanthropomorphized and Anthropomorphized Product in Ads
Changchun Xuan, Xiamen University
Rui Chen, Xiamen University
Jing Jiang, Suzhou Broadcasting System
Bin Yu, Tsingtao Brewery Company Limited
Jingjia Peng, Icartoon Culture & Media Corporation ltd
Shengdong Lin, Xiamen University
Featured
My Experience or My Expectations: The Effect of Expectations as Reference Points on Willingness to Recommend Experiential Purchases
Stephanie Tully, University of Southern California, USA
Amar Cheema, University of Virginia, USA
On Amir, University of California San Diego, USA
Davide Proserpio, University of Southern California, USA
Featured
P12. Disclosure of Project Risk in Crowdfunding
Jooyoung Park, Peking University
KEONGTAE KIM, Chinese University of Hong Kong, China