Access the full text.
Sign up today, get DeepDyve free for 14 days.
J. Alba, C. Mela, Terence Shimp, Joel Urbany (1999)
The Effect of Discount Frequency and Depth on Consumer Price JudgmentsJournal of Consumer Research, 26
William Dodds, K. Monroe, Dhruv Grewal (1991)
Effects of Price, Brand, and Store Information on Buyers’ Product EvaluationsJournal of Marketing Research, 28
K. Fuson, Steven Smith, A. Cicero (1996)
A Design Framework for Teaching, Learning Activities Supporting Latino First Graders' Ten-Structured Thinking in Urban Classrooms
Christoph Selter (2001)
Addition and Subtraction of Three-digit Numbers: German Elementary Children's Success, Methods and StrategiesEducational Studies in Mathematics, 47
S. Hecht (1999)
Individual solution processes while solving addition and multiplication math facts in adultsMemory & Cognition, 27
D. Lichtenstein, Scot Burton, Eric Karson (1991)
The Effect of Semantic Cues on Consumer Perceptions of Reference Price AdsJournal of Consumer Research, 18
Gerald Lohse (1997)
Consumer Eye Movement Patterns on Yellow Pages AdvertisingJournal of Advertising, 26
Xiaoyan Deng, B. Kahn (2009)
Is Your Product on the Right Side? The “Location Effect” on Perceived Product Heaviness and Package EvaluationJournal of Marketing Research, 46
A. Baroody (1984)
Children's Difficulties in Subtraction: Some Causes and Questions.Journal for Research in Mathematics Education, 15
Dhruv Grewal, R. Krishnan, J. Baker, Norm Borin (1998)
The Effect of Store Name, Brand Name and Price Discounts on Consumers' Evaluations and Purchase IntentionsJournal of Retailing, 74
P. Ngobo, P. Legohérel, N. Guéguen (2010)
A cross-category investigation into the effects of nine-ending pricing on brand choiceJournal of Retailing and Consumer Services, 17
A. Turnbull, R. Baird (1968)
The graphics of communication : typography, layout, design
S. Macé (2012)
The Impact and Determinants of Nine-Ending Pricing in Grocery RetailingJournal of Retailing, 88
Jamie Campbell, Qilin Xue (2001)
Cognitive arithmetic across cultures.Journal of experimental psychology. General, 130 2
G. Chapman, Eric Johnson (1994)
The limits of anchoring.Journal of Behavioral Decision Making, 7
Nancy Puccinelli, R. Chandrashekaran, Dhruv Grewal, R. Suri (2013)
Are Men Seduced by Red? The Effect of Red Versus Black Prices on Price Perceptions.Journal of Retailing, 89
S. Dehaene (1989)
The psychophysics of numerical comparison: A reexamination of apparently incompatible dataPerception & Psychophysics, 45
Science, 185
K. Wynn (1992)
Addition and subtraction by human infantsNature, 358
Manoj. Thomas, V. Morwitz (2009)
The Ease-of-Computation Effect: The Interplay of Metacognitive Experiences and Naive Theories in Judgments of Price DifferencesJournal of Marketing Research, 46
K. Manning, David Sprott (2009)
Price Endings, Left‐Digit Effects, and ChoiceJournal of Consumer Research, 36
Dhruv Grewal, H. Marmorstein, Arun Sharma (1996)
Communicating Price Information through Semantic Cues: The Moderating Effects of Situation and Discount SizeJournal of Consumer Research, 23
Robert Leone (1996)
Coupon face value: Its impact on coupon redemptions, brand sales, and brand profitabilityJournal of Retailing, 72
R. Schindler, P. Kirby (1997)
Patterns of Rightmost Digits Used in Advertised Prices: Implications for Nine-Ending EffectsJournal of Consumer Research, 24
(1984)
Strategy choice in addition and subtraction: how do children know what to do?
Abhijit Biswas, Edward Blair (1991)
Contextual Effects of Reference Prices in Retail AdvertisementsJournal of Marketing, 55
I. Imbo, A. Vandierendonck, Y. Rosseel (2007)
The influence of problem features and individual differences on strategic performance in simple arithmeticMemory & Cognition, 35
Abhijit Biswas, Sandeep Bhowmick, Abhijit Guha, Dhruv Grewal (2013)
Consumer Evaluations of Sale Prices: Role of the Subtraction PrincipleJournal of Marketing, 77
Michael Yip (2002)
Presentation Effects on Arithmetic Problem SolvingPsychologia, 45
Keith Coulter, Robin Coulter (2005)
Size Does Matter: The Effects of Magnitude Representation Congruency on Price Perceptions and Purchase LikelihoodJournal of Consumer Psychology, 15
Andrew Simon, N. Fagley, Jennifer Halleran (2004)
Decision framing: moderating effects of individual differences and cognitive processingJournal of Behavioral Decision Making, 17
Kin Wong, Jessica Kwong (2000)
Is 7300 m Equal to 7.3 km? Same Semantics but Different Anchoring Effects.Organizational behavior and human decision processes, 82 2
F. Strack, T. Mussweiler (1997)
Explaining the Enigmatic Anchoring Effect: Mechanisms of Selective AccessibilityJournal of Personality and Social Psychology, 73
Research has shown that when the original and the sale prices were displayed in a horizontal direction, with the sale price to the right (“Original price of $349.99/Sale price $239.99”), consumers are more likely to initiate a subtraction task to calculate the amount of the discount; and this subtraction effect would lead to better consumer value perception than if the sale price was to the left. However, fewer scholars have questioned whether the subtraction effect would still operate if the reference-price ads line up in a vertical direction? The aim of this research is to understand how different formations of reference-price ads may affect consumers' price perception and buying intention. Interestingly, positive effects on buying intention and value perceptions disappeared when buyers were shown a dollars-saved cue, rather than the lineup of original and sale prices.Design/methodology/approachThree experiments were conducted to test the hypotheses.FindingsThe results of the experiments demonstrate that when the sale price is displayed above the original price, consumers' price perception and buying intention are higher than what is placed below it.Research limitations/implicationsWhen written horizontally, Mandarin and Japanese language text are almost always written left-to-right, with multiple rows progressing downward, as in standard English text. Notably, the right-to-left written form for Mandarin and Japanese language only happens by writing in a vertically and multiple-columned context. In particular, the format of reference-price ads in our research is considered to be a generally single column text only. Therefore, its writing system has almost no difference from the English one. However, our hypothesis does not apply to the Arabic world due to the right-to-left nature of the Arabic writing system.Practical implicationsOur results may inform consumers whether their cognition, which influences them not to make irrational decisions, is in turn influenced by sale price display location. Consumers should be reminded that next time they see the smaller number (sale price) they should not be too excited and forget to properly consider the original price. They should think more and consider the distance to the shop or the quality of the product before buying anything. If a product is sold in two different shops and the farther one displays the sale price above the original price but the nearer one displays the sale price below the original price, prolonging the decision time enables consumers to decrease their buying costs, such as the cost of fuel.Originality/valueThis is one of the first studies to discuss the influence of the price location in a vertical direction on price perception and buying intention.
Marketing Intelligence & Planning – Emerald Publishing
Published: Jan 20, 2023
Keywords: Price location; Vertical direction; Buying intention; Price evaluation
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.