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 NA - Advances in Consumer Research Volume 38, eds. Darren W. Dahl, Gita V. Johar, and Stijn M.J. van Osselaer, Duluth, MN : Association for Consumer Research.

Authors

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



Volume

NA - Advances in Consumer Research Volume 38 | 2011



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