Reexamining Latitude of Price Acceptability and Price Thresholds: Predicting Basic Consumer Reaction to Price

Chezy Ofir*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

68 Scopus citations

Abstract

Behavioral pricing research has shown consumers to have lower and upper price thresholds, represented by an inverted U-shaped price acceptability function. We propose another basic reaction to price, namely, "lower price is better," represented by a decreasing acceptability function without a lower price threshold. A set of variables is hypothesized to predict consumer reaction to price. Price consciousness, price-quality relation, and product involvement are shown to influence the shape of the price acceptability function. A procedure and model to scale price acceptability and obtain acceptability functions are introduced and applied. The cumulative results suggest reliable acceptability scales along with evidence for convergent and construct validity.

Original languageEnglish
Pages (from-to)612-621
Number of pages10
JournalJournal of Consumer Research
Volume30
Issue number4
DOIs
StatePublished - Mar 2004

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