An Investigation Into The Effects Of Advertised Reference Prices On The Price Consumers Are Willing To Pay For the Product

Abstract

Despite previous research, the effects of reference prices remain a controversial issue with significant public policy and managerial implications. The paper reports the results of a pilot study which was conducted in a shopping mall. With high involvement, research results suggest that reference prices, perceived quality, and product experience affect he price consumers are willing to pay for the product. With low involvement, the reference price was the only message content variable which had an affect on the price consumers were willing to pay for the product.