Package Offers and Price Rate Calculations: How Price Rates Influence Price and Promotional Sensitivity
Consumers are often faced with quantity offers, which can be evaluated by computing a price rate—a ratio of one element (quantity or price) to another. We show consumers use the large number as the numerator, which affects how sensitive consumers are to prices and promotions.
Daniel Villanova and Rajesh Bagchi (2019) ,"Package Offers and Price Rate Calculations: How Price Rates Influence Price and Promotional Sensitivity", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 892-893.
Daniel Villanova, University of Arkansas, USA
Rajesh Bagchi, Virginia Tech, USA
NA - Advances in Consumer Research Volume 47 | 2019
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