TY - JOUR
T1 - Reexamining Latitude of Price Acceptability and Price Thresholds
T2 - Predicting Basic Consumer Reaction to Price
AU - Ofir, Chezy
PY - 2004/3
Y1 - 2004/3
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=2142774101&partnerID=8YFLogxK
U2 - 10.1086/380293
DO - 10.1086/380293
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AN - SCOPUS:2142774101
SN - 0093-5301
VL - 30
SP - 612
EP - 621
JO - Journal of Consumer Research
JF - Journal of Consumer Research
IS - 4
ER -