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Is it Expensive? The Dual Effect of Construal Level on Price Judgments
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Journal Article
Is it Expensive? The Dual Effect of Construal Level on Price Judgments
2019
Overview
When judging the expensiveness of a product or service, consumers often make comparisons to similar offerings that serve as reference points. Extant pricing literature shows that reference items in the consideration set may trigger a \"contrast effect,\" where higher-priced items make the target item seem less expensive. Two studies show that the effect of reference price depends on the consumer's level of abstract thinking-or \"construal level\" -at the time of judgment. Concrete construal leads to the standard contrast effect, but abstract construal leads to an assimilation effect, where higher-priced reference items make the target seem more expensive.
Publisher
Routledge,Taylor & Francis, Ltd
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