Price presentation effects in purchases involving trade-ins

Joydeep Srivastava, Dipankar Chakravarti

Research output: Contribution to journalArticleResearchpeer-review

21 Citations (Scopus)

Abstract

When a new purchase involves trading in an old item, the prices of component transactions may be presented in different ways. The authors report three studies that examine how different price presentations influence evaluations and choice in an otherwise equivalent overall exchange. Although consumers play both buyer and seller roles in purchases involving trade-ins, the authors find that consumers' evaluation of the overall exchange typically places more weight on the price of the new purchase than the trade-in. However, they also show that the weights can be shifted systematically by (1) directly manipulating the importance of the trade-in and (2) indirectly priming a seller (vs. buyer) mind-set. In these instances, consumers place more weight on the trade-in price than the price of the new purchase.

Original languageEnglish
Pages (from-to)910-919
Number of pages10
JournalJournal of Marketing Research
Volume48
Issue number5
DOIs
Publication statusPublished - Oct 2011
Externally publishedYes

Keywords

  • Buyer-seller mind-set
  • Price partitioning
  • Price perceptions
  • Price presentation
  • Trade-ins

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