Incidental Prices and Their Effect on Willingness to Pay

Journal of Marketing Research Vol. 41, pp. 457-466, November 2004

11 Pages Posted: 11 Jun 2007

See all articles by Joseph Nunes

Joseph Nunes

University of Southern California - Marshall School of Business

Peter Boatwright

Carnegie Mellon University - David A. Tepper School of Business

Abstract

Previous research has explored how both internal and external references prices affect consumer perceptions and consequently the price that consumers are willing to pay for a product or service. Historically, researchers have examined the effects of exposure to prices for the same product, the same brand, or products in the same category. This research explores the effect of incidental prices on the consumer's willingness to pay. The authors define incidental prices as prices advertised,offered, or paid for unrelated products or goods that neither sellers nor buyers regard as relevant to the price of an item that they are engaged in selling or buying. More specifically, the authors examine how prices for products that buyers encounter unintentionally can serve as anchors, thus affecting willingness to pay for the product that they intend to buy. The findings have important implications for auction houses andonline vendors as well as for conventional retailers.

Keywords: incidental price, consumer, effect, willingness

Suggested Citation

Nunes, Joseph and Boatwright, Peter, Incidental Prices and Their Effect on Willingness to Pay. Journal of Marketing Research Vol. 41, pp. 457-466, November 2004, Available at SSRN: https://ssrn.com/abstract=991963

Joseph Nunes (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA California 90089
United States

Peter Boatwright

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

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