The notion that individuals have an internal reference price against which they compare observed prices is well supported by several psychological theories. Empirically, several papers in the marketing literature, employing scanner panel data, have modeled the impact of reference prices on brand...

This paper provides insights into the dynamics of attention to TV commercials via an analysis of the length of time that commercials are viewed before being 'zapped'. The model, which incorporates a flexible baseline hazard rate and captures unobserved heterogeneity across both consumers and...

This study examines the effects of incidental similarity shared between a salesperson and a potential customer. We show that an incidental similarity, such as a shared birthday or birthplace, can result in a more favorable attitude and a higher intention to purchase. We argue and find that the...

Respondents in five experiments were more likely to choose a brand when the brand name started with letters from their names than when it did not, a choice phenomenon we call "name letter branding." We propose that during a first stage an active need to self-enhance increases the positive...

Money illusion research shows that the nominal (face) value of money affects consumer perceptions of its real value. Recent mixed findings on consumer valuations in different currencies suggest that the underlying anchoring and adjustment processes are complex. We develop a framework to identify...

We develop a spreading activation model, which we call the category activation model, to predict where within a category structure consumers are likely to position a subcategory that they have created to accommodate a new hybrid product. Based on this model, we hypothesize that the probability...

Do the effects of attitude toward the ad on consumer decisions endure beyond the scenarios that characterize previous research? In examining this question, the authors focus on the persistence of ad-attitude effects as a function of the level of attention at encoding and the delay between ad...

We point to a fundamental inconsistency in the emerging market strategies of multinational firms. On the one hand, they seek billions of new consumers in the emerging markets of China, India, Indonesia, and Latin America; on the other, their marketing programs are scarcely adapted for these...