Journal article
Profiling the reference price consumer
Journal of retailing, Vol.82(1), pp.1-11
01/01/2006
DOI: 10.1016/j.jretai.2005.11.006
Abstract
Researchers in marketing have devoted considerable attention to understanding how price impacts the purchase decision. Some individuals, termed memory-based reference price (MBR) consumers, take into account price expectations developed from past purchase behavior when making a current choice. Other individuals, termed stimulus-based reference price (SBR) consumers, make choices by constructing a reference point from the currently observed distribution of prices. Using a latent class model of structural heterogeneity applied to purchase histories from the toilet tissue category, we classify households in terms of the pricing mechanism used in buying decisions. We find strong evidence that memory-based (internal) reference price consumers are more price sensitive than other consumers. Moreover, we find that variables associated with the accessibility of price information are predictive of consumer use of memory-based reference prices. Managerial implications of these results are discussed.
Details
- Title: Subtitle
- Profiling the reference price consumer
- Creators
- Sangkil Moon - North Carolina State UniversityGary J. Russell - Henry B. Tippie College of Business, University of Iowa, Iowa City, IA 52242, USASri Devi Duvvuri - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of retailing, Vol.82(1), pp.1-11
- Publisher
- Elsevier Inc
- DOI
- 10.1016/j.jretai.2005.11.006
- ISSN
- 0022-4359
- eISSN
- 1873-3271
- Language
- English
- Date published
- 01/01/2006
- Academic Unit
- Marketing
- Record Identifier
- 9984380522602771
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