Relaxation Increases Monetary Valuations

Journal of Marketing Research, 2011

45 Pages Posted: 4 Jan 2011

See all articles by Michel Tuan Pham

Michel Tuan Pham

Columbia University - Columbia Business School; Columbia Business School - Marketing

Iris W. Hung

National University of Singapore (NUS) - NUS Business School

Gerald J. Gorn

Hong Kong University of Science & Technology (HKUST) - Department of Marketing

Multiple version iconThere are 2 versions of this paper

Date Written: January 3, 2011

Abstract

This research documents an intriguing empirical phenomenon whereby states of relaxation increase the monetary valuation of products. This phenomenon is demonstrated in six experiments involving two different methods of inducing relaxation, a large number of products of different types, and various methods of assessing monetary valuation. In all six experiments participants who were put into a relaxed affective state reported higher monetary valuations than participants who were put into an equally pleasant but less relaxed state. This effect seems to be caused by differences in relaxed and non-relaxed individuals’ mental construals of the value of the products. Specifically, compared to less-relaxed individuals, relaxed individuals seem to represent the value of products at a higher level of abstraction, which increases their perceptions of these products’ value. The phenomenon appears to reflect an inflation of value by relaxed individuals rather than a deflation of value by less-relaxed individuals.

Keywords: Relaxation, Willingness-to-Pay, Affect, Judgmment, Decision Making, Construal Level Theory

JEL Classification: M31, C91, D46, D12

Suggested Citation

Pham, Michel Tuan and Hung, Iris W. and Gorn, Gerald J., Relaxation Increases Monetary Valuations (January 3, 2011). Journal of Marketing Research, 2011. Available at SSRN: https://ssrn.com/abstract=1734347

Michel Tuan Pham (Contact Author)

Columbia University - Columbia Business School ( email )

3022 Broadway
515 Uris
New York, NY 10027
United States
212-854-3472 (Phone)

HOME PAGE: http://www.columbia.edu/~tdp4/

Columbia Business School - Marketing ( email )

3022 Broadway
515 Uris
New York, NY NY 10027
United States

HOME PAGE: http://www.columbia.edu/~tdp4/

Iris W. Hung

National University of Singapore (NUS) - NUS Business School ( email )

1 Business Link
Singapore, 117592
Singapore

Gerald J. Gorn

Hong Kong University of Science & Technology (HKUST) - Department of Marketing ( email )

Clear Water Bay, Kowloon

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