How Evaluations of Multiple Percentage Price Changes are Influenced by Presentation Mode and Percentage Ordering: The Role of Anchoring and Surprise

ABSTRACT We present a theory of how consumers evaluate multiple percentage price changes (discounts or surcharges). For example, consider two discounts on a jacket: Take 18% off list price then an additional 12% off. We show consumers weight the two percentages to make evaluations. Furthermore, cues endogenous in the communication of these percentages influence weightings. When two percentages are presented, they can either be presented at the same time (simultaneously) or temporally separated (sequentially), and with a large first or large later percentage ordering. We argue that depending on the presentation mode or ordering, consumers use different processes. While providing practical guidance, this research extends our understanding of anchoring and adjustment. When information is presented simultaneously, individuals anchor on the first piece of information. However, sequential presentation induces surprise. This shifts attention to the latter percentage change, which then serves as the anchor in sub...

• 저널Journal of Marketing Research
• 토픽Decision-Making and Behavioral Economics · General Decision Sciences
• DOI10.1509/jmr.15.0278
• 저자Derick Davis, Rajesh Bagchi