Marketing researchers recently have expended considerable effort to investigate how price influences buyers’ decisions yielding a variety of results, some not entirely explainable. This article reviews the relevant research literature, organizes the results, and suggests new research directions.
Get full access to this article
View all access options for this article.
References
1.
AdamDaniel. Les réactions du consummateur devant le prix. Paris: SEDES, 1958.
2.
AlexisMarcus, GeorgeHainesJr., and SimonLeonard. “A Study of the Validity of Experimental Approaches to the Collection of Price and Product Preference Data,” paper presented at 17th International Meeting of the Institute of Management Sciences, 1970.
3.
AndrewsP. R. and ValenziE. R. “Combining Price, Brand, and Store Cues to Form an Impression of Product Quality,” paper presented at Conference of the American Psychological Association, 1971.
4.
BrownF. E. “Price Perception and Store Patronage,” Proceedings. Fall Conference, American Marketing Association, 1968, 371–6.
5.
BrownF. E. “Who Perceives Supermarket Prices Most Validly?” Journal of Marketing Research, 8 (February 1971), 110–3.
6.
BrunerJerome and GoodmanCecile. “Value and Need as Organizing Factors in Perception,” Journal of Abnormal and Social Psychology, 42 (January 1947), 33–44.
7.
BrunerJerome and Leigh MinturnA. “Perceptual Identification and Perceptual Organization,” Journal of General Psychology, 53 (July 1955), 21–8.
8.
BrunerJerome and PostmanLeo. “Symbolic Value as an Organizing Factor in Perception,” Journal of Social Psychology, 27 (February 1948), 203–8.
9.
CampbellDonald, HuntWilliam, and LewisNan. “The Effects of Assimilation and Contrast in Judgments of Clinical Materials,” American Journal of Psychology, 70 (September 1957), 347–60.
10.
CooperPeter. “Subjective Economics: Factors in a Psychology of Spending,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/Systems Press, 1970, 112–21.
11.
CooperPeter. “The Begrudging Index and the Subjective Value of Money,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/Systems Press, 1970, 122–31.
12.
CorsoJohn. “A Theoretic-Historical Review of the Threshold Concept,” Psychological Bulletin, 60 (July 1963), 356–70.
13.
Della BittaAlbert. “An Experimental Examination of Conditions Which May Foster the Use of Price as an Indicator of Relative Product Attractiveness,” unpublished doctoral dissertation, University of Massachusetts, 1971.
14.
EmeryFred. “Some Psychological Aspects of Price,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/Systems Press, 1970, 98–111.
15.
EngelJames, KollatDavid, and BlackwellRoger. Consumer Behavior. New York: Holt, Rinehart and Winston, 1968.
16.
EnisBen and StaffordJames. “Consumers' Perception of Product Quality as a Function of Various Information Inputs,” Proceedings. Fall Conference, American Marketing Association, 1969, 340–4.
17.
EnisBen and StaffordJames. “The Price-Quality Relationship: An Extension,” Journal of Marketing Research, 6 (November 1969), 256–8.
18.
FouilhéPierre. “The Subjective Evaluation of Price: Methodological Aspects,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/Systems Press, 1970, 89–97.
19.
FriedmanLawrence. “Psychological Pricing in the Food Industry,” in PhillipsAlmarin and WilliamsonOliver, eds., Prices: Issues in Theory, Practice, and Public Policy. Philadelphia: University of Pennsylvania Press, 1967, 187–201.
20.
AndréGabor and GrangerClive. “On the Price Consciousness of Consumers,” Applied Statistics, 10 (November 1961), 170–88.
21.
AndréGabor and GrangerClive. “Price Sensitivity of the Consumer,” Journal of Advertising Research, 4 (December 1964), 40–4.
22.
AndréGabor and GrangerClive. “The Pricing of New Products,” Scientific Business, 3 (August 1965), 141–50.
23.
AndréGabor and GrangerClive. “Price as an Indicator of Quality, Report on an Enquiry,” Economica, 46 (February 1966), 43–70.
24.
AndréGabor and GrangerClive. “The Attitude of the Consumer to Price,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/Systems Press, 1970. 132–51.
25.
GaborAndré, and SowterAnthony. “Comments on ‘Psychophysics of Prices,’” Journal of Marketing Research, 8 (May 1971), 251–2.
26.
GardnerDavid. “An Experimental Investigation of the Price-Quality Relationship,” Journal of Retailing, 46 (Fall 1970), 25–41.
27.
GardnerDavid. “Is There a Generalized Price-Quality Relationship?” Journal of Marketing Research, 8 (May 1971), 241–3.
28.
GinzbergEli. “Customary Prices,” American Economic Review, 26 (June 1936), 296.
29.
HelsonHarry. Adaptation-Level Theory. New York: Harper & Row, 1964.
“How Much Do Customers Know About Retail Prices?” Progressive Grocer, 43 (February 1964), C104–6.
32.
JacobyJacob, OlsonJerry, and HaddockRafael. “Price, Brand Name, and Product Composition Characteristics as Determinants of Perceived Quality,” Journal of Applied Psychology, 55 (December 1971), 470–9.
33.
KamenJoseph and TomanRobert. “Psychophysics of Prices,” Journal of Marketing Research, 7 (February 1970), 27–35.
34.
KamenJoseph and TomanRobert. “‘Psychophysics of Prices’: A Reaffirmation,” Journal of Marketing Research, 8 (May 1971), 252–7.
35.
LambertZarrel. “Price and Choice Behavior,” Journal of Marketing Research, 9 (February 1972), 35–40.
36.
KamenJoseph and TomanRobert. “Product Perception: An Important Variable in Price Strategy,” Journal of Marketing, 34 (October 1970), 68–71.
37.
LeavittHarold. “A Note on Some Experimental Findings About the Meaning of Price,” Journal of Business, 27 (July 1954), 205–10.
38.
McConnellJ. Douglas. “An Experimental Examination of the Price-Quality Relationship,” Journal of Business, 41 (October 1968), 439–44.
39.
McConnellJ. Douglas. “The Development of Brand Loyalty: An Experimental Study,” Journal of Marketing Research, 5 (February 1968), 13–9.
40.
McConnellJ. Douglas. “Effects of Pricing on Perception of Product Quality,” Journal of Applied Psychology, 52 (August 1968), 313–4.
41.
McConnellJ. Douglas. “The Price-Quality Relationship in an Experimental Setting,” Journal of Marketing Research, 5 (August 1968), 300–3.
42.
McDougallGordon. “Credibility of Price-offs in Retail Advertising,” unpublished doctoral dissertation proposal, University of Western Ontario, 1970.
43.
MillerRichard. “Dr. Weber and the Consumer,” Journal of Marketing, 26 (January 1962), 57–61.
44.
MonroeKent. “A Method for Determining Product Line Prices with End-Price Constraints,” unpublished doctoral dissertation, University of Illinois, 1968.
45.
MonroeKent. “The Information Content of Prices: A Preliminary Model for Estimating Buyer Response,” Management Science, 17 (April 1971), B519–32.
46.
MonroeKent. “Measuring Price Thresholds by Psychophysics and Latitudes of Acceptance,” Journal of Marketing Research, 8 (November 1971), 460–4.
47.
MonroeKent. “‘Psychophysics of Prices’: A Reappraisal,” Journal of Marketing Research, 8 (May 1971), 248–50.
48.
MonroeKent. “The Influence of Price and the Cognitive Dimension on Brand Attitudes and Brand Preferences,” paper presented at Attitude Research and Consumer Behavior Workshop, 1970.
49.
MonroeKent. “Some Findings on Estimating Buyers' Response Functions for Acceptable Price Thresholds,” Proceedings. Northeast Conference, the American Institute for Decision Sciences, 1972, in press.
50.
MonroeKent and LaPlacaPeter. “What Are the Benefits of Unit Pricing?” Journal of Marketing, 36 (July 1972), 16–22.
51.
MonroeKent and VenkatesanM. “The Concept of Price Limits and Psychophysical Measurement: A Laboratory Experiment,” Proceedings. Fall Conference, American Marketing Association, 1969, 345–51.
52.
NewmanDiane and BecknellJames. “The Price-Quality Relationship as a Tool in Consumer Research,” Proceedings. 78th Annual Conference, American Psychological Association, 1970, 729–30.
53.
ÖlanderFolke. “The Influence of Price on the Consumer's Evaluation of Products and Purchases,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/Systems Press, 1970, 50–69.
PessemierEdgar. “An Experimental Method for Estimating Demand,” Journal of Business, 33 (October 1960), 373–83.
56.
PessemierEdgar. Experimental Methods of Analyzing Demand for Branded Consumer Goods. Economic and Business Study No. 39, Pullman, Wa.: Washington State University Press, 1963.
57.
PessemierEdgar and TeachRichard. “Pricing Experiments, Scaling Consumer Preferences, and Predicting Purchase Behavior,” Proceedings. Fall Conference, American Marketing Association, 1966, 541–57.
58.
PetersonRobert. “The Price-Perceived Quality Relationship: Experimental Evidence,” Journal of Marketing Research, 7 (November 1970), 525–8.
59.
RaoVithala. “The Salience of Price in the Perception and Evaluation of Product Quality: A Multidimensional Measurement Model and Experimental Test,” unpublished doctoral dissertation, University of Pennsylvania, 1970.
60.
RaoVithala. “Salience of Price in the Perception of Product Quality: A Multidimensional Measurement Approach,” Proceedings. Fall Conference, American Marketing Association, 1971, 571–7.
61.
RothElmer. “How to Increase Room Revenue,” Hotel Management, 67 (March 1955), 52ff.
62.
ScitovskyTibor. “Some Consequences of the Habit of Judging Quality By Price,” Review of Economic Studies, 12 (1944–45), 100–5.
63.
ShapiroBenson. “The Psychology of Pricing,” Harvard Business Review, 46 (July–August 1968), 14–8, 20, 22, 24–5, 160.
64.
ShapiroBenson. “Price as a Communicator of Quality: An Experiment,” unpublished doctoral dissertation, Harvard University, 1970.
65.
SherifCarolyn. “Social Categorization as a Function of Latitude of Acceptance and Series Range,” Journal of Abnormal and Social Psychology, 67 (August 1963), 148–56.
66.
SherifMuzafer and HovlandCarl. “Judgmental Phenomena and Scales of Attitude Measurement: Placement of Items with Individual Choice of Number of Categories,” Journal of Abnormal and Social Psychology, 48 (January 1953), 135–41.
67.
SmithEdward and BroomeCharles. “A Laboratory Experiment for Establishing Indifference Prices Between Brands of Consumer Products,” Proceedings. Fall Conference, American Marketing Association, 1966, 511–9.
68.
SmithEdward and BroomeCharles. “Experimental Determination of the Effect of Price and Market-Standing Information on Consumers' Brand Preferences,” Proceedings. Fall Conference, American Marketing Association, 1966, 520–31.
69.
StapelJan. “‘Fair’ or ‘Psychological’ Pricing?” Journal of Marketing Research, 9 (February 1972), 109–10.
70.
StoetzelJean. “Psychological/Sociological Aspects of Price,” in TaylorBernard and WillsGordon, eds., Pricing Strategy. Princeton, N.J.: Brandon/System Press, 1970, 70–4.
71.
TajfelH. “Value and the Perceptual Judgment of Magnitude,” Psychological Review, 64 (May 1957), 192–204.
72.
TajfelH. “Quantitative Judgment in Social Perception,” British Journal of Psychology, 50 (February 1959), 16–29.
73.
TullDonald, BoringR. A., and GonsiorM. H. “A Note on the Relationship of Price and Imputed Quality,” Journal of Business, 37 (April 1964), 186–91.
74.
UhlJoseph. “Consumer Perception of Retail Food Price Changes,” paper presented at First Annual Meeting of the Association for Consumer Research, 1970.
75.
WebbEugene. “Weber's Law and Consumer Prices,” American Psychologist, 16 (July 1961), 450.
76.
WellsWilliam and LoSciutoLeonard. “Direct Observation of Purchasing Behavior,” Journal of Marketing Research, 3 (August 1966), 227–33.
