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This paper examines how odd-ending pricing influences consumption of hedonic and utilitarian products. Four studies test the hypothesis that the discount image associated with odd-ending prices reduces anticipated guilt and provides justification for hedonic consumption – an effect the authors label the odd-ending price justification effect (OPJE). Study 1 reveals people are more likely to choose hedonic over utilitarian products when they have odd-ending prices. Study 2 finds that the effect of odd-ending prices on hedonic consumption is mediated by guilt reduction. Study 3 reveals a boundary condition for the OPJE – purchase likelihood of hedonic products increases only when monetary, not nonmonetary, guilt is reduced. Study 4 suggests the OPJE operates at an unconscious level, as consumers who are made aware of the trivial difference between odd- and round-ending prices are no longer influenced by odd-ending prices. The theoretical, practical, and research implications of these findings are discussed.

Do payment mechanisms change the way consumers perceive products? We argue that consumers for whom credit cards (cash) have been primed focus more on benefits (costs) when evaluating a product. In study 1, credit card (cash) primed participants made more (fewer) recall errors regarding cost attributes. In a word recognition task (study 2), participants primed with credit card (cash) identified more words related to benefits (costs) than those in the cash (credit card) condition. In study 3, participants in the credit card (cash) condition responded faster to benefits (costs) than to costs (benefits). This differential focus led credit card primed consumers to express higher reservation prices (studies 1–3) and also affected their product choices (study 4) relative to those primed with cash.

The discrepancy between willingness to pay (WTP) and willingness to accept (WTA) for a product, referred to as the endowment effect, has been investigated and replicated across various domains because of its implications for rational decision making. The authors assume that implicit processes operate in the endowment effect and propose an explanation that is derived from the two main accounts of the effect, ownership and loss aversion. Based on the implicit egotism and self-affirmation literatures, the model argues that selling is perceived as an implicit self-threat and that sellers, as a part of their automatic defense mechanism, respond to this self-threat by enhancing the value of the self-associated object. Five studies test these conjectures and provide support for the proposed model.

Most charitable organizations cannot accomplish their missions without asking for money. This is paradoxical because recent research suggests that mentioning money primes a self-sufficient mindset, thus undermining the very behaviors these organizations desire to elicit. We offer an important qualification to this problematic effect. We find that priming cash concepts reduces willingness to help others, while activating credit card concepts reverses these effects. To explain our findings, in three studies we show that priming cash concepts makes costs associated with donating time or money more salient in the decision context, thereby reducing willingness to give help and to receive it. However, priming credit card concepts makes the benefits of donation more salient.

Many of decisions that people make deal with assessing the probabilities of uncertain events. Because of the prevalence and importance of probability estimation, a large body of research has investigated different factors that can influence probability judgments. The findings show that people have biases in estimating the subjective probabilities of uncertain events. These biases can lead individuals to either overestimate or underestimate the subjective probabilities. Examples of these biases include anchoring, availability, and representativeness. Moreover, it has been shown that illusion of control is a bias that can lead individuals to overestimate the subjective probabilities. For instance, as a result of an illusory sense of control, people make larger bets when they roll the dice themselves, are less likely to trade their lottery ticket when they choose (vs. are given) the ticket numbers, and prefer higher speeds as a driver versus a passenger. Here, Cabano et al investigate whether observing the occurrence of an uncertain event affects probability estimation of that event.

Most charitable organizations cannot accomplish their missions without asking for money. This is paradoxical because recent research suggests that mentioning money primes a self-sufficient mindset, thus undermining the very behaviors these organizations desire to elicit. We offer an important qualification to this problematic effect. We find that priming cash concepts reduces willingness to help others, while activating credit card concepts reverses these effects. To explain our findings, in three studies we show that priming cash concepts makes costs associated with donating time or money more salient in the decision context, thereby reducing willingness to give help and to receive it. However, priming credit card concepts makes the benefits of donation more salient.

The discrepancy between the buyer and seller evaluation, referred to as the endowment effect, has been investigated and replicated across various domains because of its implications for rational decision-making. The endowment effect has been explained as a manifestation of loss aversion from the reference point of ownership. Though prior research has examined various cognitive and affective processes underlying the endowment effect, some fundamental questions remain unanswered. These questions pertain to the intriguing nature of the endowment effect and the nature of the construct used to explain the phenomenon - loss aversion. In an attempt to answer these questions, this research proposes a model based on implicit processes. The model argues that selling is perceived as an implicit self-threat and sellers as a part of their automatic defense mechanism respond to this self-threat by enhancing the value of the self-associated object. Three studies test the above hypothesis and provide support to the proposed model.