Traditional demand models assume consumers are perfectly informed about product characteristics, including price. However, sales are a common supermarket practice. Using French data we show that retailers frequently change position in the price rankings, making it unlikely that consumers know all deals offered at each period. Further empirical evidence relating transaction prices, consumers’opp...

This study adopts illusion of control and lateral consumer relationship to investigate their effects on price fairness in online auction and group buying context. These two variables have been known to have strong influences in fairness perception on human decision making processes and outcomes. Through laboratory experiments, this study demonstrates that consumers’ perception on illusion of co...

This chapter examines how product price, product complexity and product durability influence consumers’ comparison.shopping.process...Frequently.comparison.shopping.is.equated.only.to.price.comparisons.. However, comparison shopping is becoming far broader than finding the cheapest price over the Internet. Nowadays.a.vast.variety.of.products.are.sold.over.the.Internet...Some.are.relatively.simp...

The note explores a vertical differentiation model with a continuous nonuniform consumers’ distribution. First a result concerning the finiteness property obtained with uniform consumers’ distribution is generalized. Second we prove an existence result of price equilibrium when the distribution is concave. Finally we exhibit a counter-example to the existence of price equilibrium to show that t...

A monopolist offers a product to a market of consumers with heterogeneous quality preferences. Although initially uninformed about the product quality, they learn by observing past purchase decisions and reviews of other consumers. Our goal is to analyze the social learning mechanism and its effect on the seller’s pricing decision. Consumers follow an intuitive, nonBayesian decision rule. Under...

Reference price research suggests that consumers memorize and recall price information when selecting brands for frequently purchased products. Previous price-knowledge surveys, however, indicate that memory for prices is lower than expected. In this study, we show that these priceknowledge surveys actually provided imperfect estimates of price knowledge because they focused only on recall and ...

ions. They also presume that consumers carefully calculate the give and get components of value, an assumption that did not hold true for most consumers in the exploratory study. Price as a Quality Indicator Most experimental studies related to quality have focused on price as the key extrinsic quality signal. As suggested in the propositions, price is but one of several potentially useful extr...

This study focuses on consumer responses to two different types of price discounts: 1) a price discount with and 2) a price discount without a minimum purchase requirement. The effects of the discounts are examined to the extent that they may change consumers' attitudes and purchase intentions regarding a particular brand, by moving it from consumers' hold set to consideration set. A three-phas...