Contextual Influences on Consumer Price Responses: An Experimental Analysis

Abstract

Presentation of price is a common form of retail advertising. The authors examine the influences of semantic, comparison, and store name cues on consumer price perceptions. The research, unlike earlier student-based pricing studies, involved 562 consumers from a major metropolitan area who were each exposed to one of 16 treatment conditions. Results indicate comparison cues produce positive results, whereas the effect of semantic cues depends on the particular stimulus. Findings underscore the necessity for broader price research beyond traditional quality implications and wider representation of product types.