Denomination Anchors: Demonstrating the Contingent Nature of the Denomination Effect As a Function of Price Level

Five studies show that at lower price/spend levels, the denomination effect replicates, but at higher price/spending levels it can reverse. This pattern suggests that the denomination effect may be driven by anchoring on price and matching it with the available denominations in one’s wallet: the Denomination Anchor effect.



Citation:

Elena Reutskaja, Jeremiah Iyamabo, Iñigo Gallo, and Priya Raghubir (2018) ,"Denomination Anchors: Demonstrating the Contingent Nature of the Denomination Effect As a Function of Price Level", in E - European Advances in Consumer Research Volume 11, eds. Maggie Geuens, Mario Pandelaere, and Michel Tuan Pham, Iris Vermeir, Duluth, MN : Association for Consumer Research, Pages: 24-28.

Authors

Elena Reutskaja, IESE Business School, Spain
Jeremiah Iyamabo, IESE Business School, Spain
Iñigo Gallo, IESE Business School, Spain
Priya Raghubir, NYU-Stern Business School, USA



Volume

E - European Advances in Consumer Research Volume 11 | 2018



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