How social comparison influences reference price formation in a service context

Giampaolo Viglia; Graziano Abrate

doi:10.1016/j.joep.2014.09.003

How social comparison influences reference price formation in a service context

Giampaolo Viglia, Graziano Abrate

Dipartimento di Studi per l'Economia e l'Impresa

Risultato della ricerca: Contributo su rivista › Articolo in rivista › peer review

Abstract

What is the influence on reference price when the source of price information is anonymous versus social? This article investigates the formation of reference prices given an observed sequence of past prices in a service context. An experimental study suggests that, considering the same price information, if the source is social (i.e., the prices paid by colleagues), then consumers want to pay less. More specifically, social comparison changes the way individuals weigh information, attributing more importance to the lowest historical prices and to the range in price variations.

Lingua originale	Inglese
pagine (da-a)	168-180
Numero di pagine	13
Rivista	Journal of Economic Psychology
Volume	45
DOI	https://doi.org/10.1016/j.joep.2014.09.003
Stato di pubblicazione	Pubblicato - 1 dic 2014

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abstract = "What is the influence on reference price when the source of price information is anonymous versus social? This article investigates the formation of reference prices given an observed sequence of past prices in a service context. An experimental study suggests that, considering the same price information, if the source is social (i.e., the prices paid by colleagues), then consumers want to pay less. More specifically, social comparison changes the way individuals weigh information, attributing more importance to the lowest historical prices and to the range in price variations.",

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How social comparison influences reference price formation in a service context

Abstract

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