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This study shows the influence of consumers' goal and strategy of maximization on the process behind their behavioral response to price.

Data was collected through a 2×2 experimental design involving 314 respondents and analyzed using PLS-SEM.

The results show that when buyers maximize, their transaction value and acquisition value perceptions predict their behavioral response to deals and discounts. Further, these buyers do not consider sales price information to form their internal reference price. On the other hand, when buyers satisfice, their transaction value perceptions predict the behavioral responses to price deals, and the relationship between transaction value and the behavioral response is not mediated by acquisition value. Further, such buyers consider sales price to form their internal reference price.

The theory of purchase value assumes that consumers seek to maximize their value. Our work relaxes this assumption to show how value maximizers (and satisficers) differ in the process of value formation and their responses to price promotions.

This research aims to examine which cooperative contract (wholesale-price contract or cost-sharing contract) can more effectively upgrade the green degree of product and promote demand when considering consumer reference price effect under different power structures.

This research investigates a dyadic green supply chain composed of one manufacturer and one retailer. Four Stackelberg game models with a cost-sharing contract or a wholesale-price contract are built in retailer-led and manufacturer-led scenarios, respectively. Using backward induction, the optimal green decision under each model is obtained. In addition, the optimal cooperative contract is proposed by comparing these four models.

It is found that under consumer reference price effect, a cost-sharing contract outperforms a wholesale-price contract in upgrading product greenness and promoting demand. Under any single contract, the retailer-led situation is more conducive to improving product greenness than the manufacturer-led situation. Moreover, consumer reference price effect would reduce the sharing ratio of a cost-sharing contract when the manufacturer dominates, but it could mitigate the problem of double marginalization by reducing wholesale and retail prices under both types of contracts, which would enhance consumer surplus.

It is a new attempt to incorporate consumer reference price effect and power structure into a green supply chain framework and proposes a novel demand function that simultaneously emphasizes consumer reference price effect, consumer environmental awareness and product green attribute. In addition, it provides managerial insights for business managers to choose green cooperative contracts with consumer reference price effect under different power structures.

Advertisements for dietary supplements (DS) often include misleading claims regarding their health benefits. In this study, the authors designed an online advertisement for plant-based DS featuring misleading claims and investigated its effects on mature Chinese consumers before and after revealing the false claims. A consumer involvement framework was developed to evaluate the mediating effect of advertising involvement (AI) on the correlation between product involvement (PI), situational involvement (SI) and purchase intention (PI).

A total of 467 mature adults aged over 40 years who resided in China's Yangtze River Delta region and had experience in purchasing DS online were recruited. Relevant data were collected through an online survey and analysed through structural equation modelling.

Cognitive PI was positively correlated with both SI and PI and SI was positively correlated with PI. AI negatively moderated the correlation between affective PI and SI. Both cognitive PI and AI were positively correlated with PI and the correlation was mediated through SI.

DS consumption is a rational decision-making process driven by utilitarian motives. Consumers who are aware of the misleading claims adopt a cautious evaluation approach and place themselves in specific purchase situations before making a purchase decision. This study advances the literature by incorporating the consideration of misleading advertisements into the consumer involvement model within the context of online DS consumption. The study's findings provide insights to intensify monitoring of false advertisements in the DS industry and design effective consumer education programmes.

The purpose of this study is to understand how the degree of congruence between buyers’ and sellers’ intentions to negotiate impacts buyers’ postpurchase emotions and attitudes. In addition, the study examines whether buyers’ self-confidence and negotiation expertise can increase buyers’ perceptions of control and regret, as well as buyers’ postpurchase satisfaction and enjoyment with the purchase. Traditionally, marketplace exchanges have been classified as either fixed price or negotiated. The present research treats marketplace exchanges along a continuum of intention congruence to test the relationships between intention congruence and outcome variables of control, regret, satisfaction and enjoyment with the purchase.

The authors studied the perceived difference between buyers' and sellers' intentions to negotiate and how the difference impacts buyers' postpurchase attitudinal and emotional outcomes. A mail survey of automobile buyers resulted in a sample of 291 respondents. An automobile is a significant and irreversible purchase for a buyer. Thus, automobile markets often host transactions that evoke dissonance and regret for buyers if things go awry. In addition, buyers and sellers vary considerably in their desire to negotiate, thus reflecting a range of intention congruence in negotiation. Therefore, a survey of automobile buyers was considered appropriate for testing the effects of intention congruence on buyers’ postpurchase outcomes.

Results indicate that when buyers are willing to negotiate but sellers do not reciprocate equally, buyers feel less in control of a transaction. Contrarily, buyers experienced greater control and lesser regret when buyers’ perceptions of sellers’ intention to negotiate exceeded buyers’ own intentions to negotiate. Results also suggest that when buyers’ intentions to negotiate were congruent with buyers’ perception of sellers’ intention to negotiate, greater dyadic levels of negotiation marginally lowered buyers’ perceived regret. Overall, an intention-congruence perspective adds to the current understanding of negotiated exchanges and is a meaningful approach for improving postpurchase outcomes for buyers.

The study used only the consumers’ perspective of negotiation. Although this is supported by studies in power and dependence because the consumers’ perspective is valuable and valid, a true dyadic measurement of the negotiation process can only be obtained if the sellers’ view is also incorporated. This remains a key limitation of this study.

The results suggest that sellers may be better off honoring buyers’ intentions to negotiate. Intention incongruence negatively impacted buyer satisfaction when buyers perceived sellers to be less eager to negotiate. However, where sellers seem more eager to negotiate, incongruity favored buyers and positively impacted buyers’ postpurchase outcomes. Thus, for sellers, it is worthwhile to consider adding policies that honor negotiation.

Past research classifies marketplaces exchanges as either fixed price or negotiated. The present study uses intention congruence as a continuum between transaction partners. The intention congruence approach allows a closer examination of both the symmetry and strength of intentions to negotiate in a dyadic exchange. Given that markets are comprised of buyers and sellers who display considerable variability in intentions to negotiate, examining intention congruence allows for a more realistic study of negotiation behavior in business-to-consumer marketplaces.

With the goal of helping consumers bounce back from the financial challenges they faced as a result of the COVID-19 pandemic, many firms developed and announced consumer-targeted resiliency programs (e.g. Walgreens waived delivery fees, Associated Bank allowed deferred mortgage payments). However, there is a paucity of research examining the unique features of these programs, and whether firms' investors (the first external stakeholder group to provide them with feedback regarding their strategies) were receptive to these programs during a period of time in which firms themselves were suffering financially. Drawing on resilience theory and stakeholder theory, the present research incorporates an event study of consumer-targeted resiliency program announcements to understand their financial implications for firms, and to learn whether firms witnessed different financial effects as a result of firm- and program-specific factors.

This study referred to business news publications and newswire services to collect a comprehensive list of consumer-targeted resiliency programs announced by publicly traded U.S. firms during the pandemic. The resulting dataset consisted of 145 announcements made during the period of February–June 2020. An event study was conducted in order to precisely measure the main effect of consumer-targeted resiliency programs on firm value, as manifested through abnormal stock returns. Finally, a moderation analysis (regression) was conducted to uncover whether firm characteristics or specific features of firms' consumer-targeted resiliency programs lead certain firms to witness stronger financial effects than others.

The main effect of consumer-targeted resiliency programs on firm value was found to be positive – a 1.9% increase on average. The moderation analysis finds that non-financial firms were rewarded more positively than financial firms (e.g. banks and credit card companies). In addition, financial aid (i.e. allowing customers to defer their payments to a firm for its products/services, versus a reduction in the price of a product/service or offering it for free or giving cash back to customers) and temporal characteristics (i.e. an offer being framed as limited-time, vs being indefinite or for the foreseeable future) are not found to have a moderating effect.

This theory-driven empirical study uncovers practical implications for managers of firms interested in whether investing in corporate social responsibility during times of crisis is a wise allocation of resources. Any form of financial aid for consumers, regardless of temporal limitations, is received positively by investors.

This paper aims to examine how a stereotype threat, which entails being aware of a negative stereotype about one’s social group (e.g. gender), affects consumers’ price perceptions.

The authors conducted four studies to examine the effect of a stereotype threat on consumers’ perceptions of a product’s price–quality relationship.

This study found that being aware of a negative stereotype about one’s social group (i.e. gender here) led consumers to use price more as a quality indicator. This study also determined that reappraisal – an alternative way of coping with stereotype threats – reduced the impact of a stereotype threat and, subsequently, decreased reliance on price to infer quality.

This research contributes to the consumer decision-making literature by examining stereotype threat effect in in-store product purchasing contexts; provides theoretical contributions to the processing of price information by exploring the role of a stereotype threat in price perceptions and revealing that impairment of consumers’ working memory resources affects price perceptions; adds to the existing stereotype threat literature by investigating the effect of a stereotype threat on systematic versus heuristic information processing; and advances the stress and coping literature by suggesting that consumers adopting a reappraisal strategy cope better with a stereotype threat than when opting for a suppression strategy.

This research provides important implications for consumers. For example, the findings suggest that consumers who would like to avoid paying more for stereotype-associated products may adopt reappraisal to cope with a stereotype threat. Reappraisal may allow consumers to use fewer cognitive resources when coping with stereotype threats, thus minimizing the possibility that they might overpay for high-priced products.

This research uniquely examines the effect of a stereotype threat on consumers’ price perceptions and the role of reappraisal in this effect.

The purpose of this study is to assess the presence of deceptive advertising practices in wine retailers’ e-mails and, if identified, to analyze the extent and content of these deceptive advertisements.

The study follows an observational research design to examine the accuracy of two claims that were made in 258 marketing e-mails from two major wine retailers in New Jersey, USA: (1) that all wines have 90+ scores; and (2) that these wines are offered at a deeply discounted price.

The study found that only 3.9% of cases accurately supported both major claims made: the wines having 90+ scores and being offered at a discounted price. Both claims were inaccurate in 64.7% of cases. Nearly half (49.3%) of the advertised wines had concealed critic’s scores below 90 points. Recipients were told they could save 37.2% by purchasing from the advertising retailer, but they could have actually saved 12.7% more by buying the wines elsewhere.

The study’s limitations include the small sample size. Variations between different wine retailers and their advertising practices require further investigation.

Advertised discounts and scores may be inaccurate or incomplete, causing consumer confusion and disappointment, erosion of wine advertisements’ as well as wine retailers’ and wine experts’ credibility.

Deceptive advertising can erode consumer trust and lead to unfair practices. Consumers may make purchasing decisions based on misleading information. Deceptive practices create an uneven playing field, giving businesses that engage in them an unfair advantage, hindering market transparency and ethical businesses. Policymakers should develop regulations to protect consumers and ensure fair competition.

An investigation of deceptive advertising practices in the wine industry has not been done before. This exploratory study contributes to consumer awareness and highlights the importance of truthful and transparent marketing practices.

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter argues that social media platforms are a unique form of monopoly driven by “the more the merrier” effect (i.e., network effects) in users' consumption. These monopolies exercise market power, not by charging higher prices to users but by “tying” larger amounts of advertising to their content. Traditional antitrust instruments designed to address excessive pricing and reduced output by monopolies need to be reframed to tame the attention economy problems in the social media industry. This chapter discusses five antitrust instruments grouped in three categories: structural, behavioral, and market-based remedies. Market-based solutions are the least explored in the literature, despite being the most promising instruments to lower the attention costs imposed on users, while preserving the economies of scope in production and the network effects in consumption, and possibly maintaining free access to social media, as we know it today.

The paper attempts to discuss the impact of reference price effect on pricing decisions.

With the growth of the Internet and e-commerce, more and more customers purchase products in through online channels and choose products by comparing different prices and services, and the reference price effect has an impact on pricing decisions. To investigate the impact of consumers' reference price effect on the dual-channel supply chain, the authors establish a basic model consisting of a single dominant manufacturer and a single downstream retailer, and analyze the optional decisions under different situations and discuss the influence of reference price effect. Finally, a number case verifies the validity and rationality of the proposed model.

The results show that (1) the reference price effect has varying effects on the price, channel demand and income of manufacturers and retailers in the channel depending on the role of customers' channel preferences. (2) The manufacturer's online channel demand and profits always increase with the reference pricing effect, whereas the retailer's offline demand and profits always decline. (3) When the proportion of consumers preferring offline is higher, the manufacturer's network price and wholesale price increase with the reference price effect, while the retailer's retail price decreases with the reference price effect; when the proportion of consumers preferring offline is lower, the opposite is true, and the centralized decision results are consistent with the decentralized decision results.

This paper can clarify the impact of consumer reference price effects on the operation of dual-channel supply chains, and help inform pricing decisions of manufacturers and retailers in dual-channel supply chains.

The proposed approach can well analyze the impact of consumer reference price effect and give channel their optional decisions.

With the increasing dependence on market-based distribution of health-care resources in the USA, spending on health-care service advertisements directly targeting consumers has also increased. Previous research has shown that the ads fail to deliver information deemed essential by regulators. Nevertheless, the attitude of consumers toward health-care service advertising has been more positive than negative. The purpose of this study is to create a taxonomy of advertising information features to better describe the relationships between information features in the advertisements and consumer attitudes toward them.

A cross-sectional survey was conducted with 128 health-care consumers in a western state in the USA.

Factor analysis generated seven groups of information features. Among them, information features about access, cost and quality of care were rated as most helpful, whereas providers’ clinical qualifications and communication were rated least helpful. The advertising attitude measure was validated to contain two subscales, one regarding health-care service advertising and the other regarding physicians who advertise. People who highly rated the consumerism features had more positive attitudes toward health-care service advertising and people who highly rated provider clinical qualification features had more negative attitudes toward advertising physicians.

This study made methodological improvements in health-care service advertising research that would be crucial for its theoretical development. It also shed light on consumer characteristics and perceptions about information features that could influence their attitudes toward health-care service advertising.