Search Results - subject:"Relative thinking"

"Extra bacon?" : context effects in purchases of additional items

Brunner, Philipp; Zihlmann, Christian - 2024

Persistent link: https://www.econbiz.de/10014556858

Inderst, Roman; Obradovits, Martin - 2021

Manufacturers frequently resist heavy discounting of their products by retailers, especially when they are used as so-called loss leaders. Since low prices should increase demand and manufacturers could simply refuse to fund deep price promotions, such resistance is puzzling at first sight. We...

Persistent link: https://www.econbiz.de/10013190611

Competitive Strategies when Consumers are Relative Thinkers: Implications for Pricing, Promotions, and Product Choice

Inderst, Roman; Obradovits, Martin - 2020

How should firms optimally choose prices and promotional strategies and how should they position their products when consumers are "relative thinkers"? We provide answers in a model that extends the seminal contributions of Varian (1980) and Narasimhan (1988) and derive both managerial...

Persistent link: https://www.econbiz.de/10012609034

Competitive strategies when consumers are relative thinkers : implications for pricing, promotions, and product choice

Inderst, Roman; Obradovits, Martin - 2020

Persistent link: https://www.econbiz.de/10012241980

Salience in Retailing: Vertical Restraints on Internet Sales

Helfrich, Magdalena; Herweg, Fabian - 2017

We provide an explanation for a frequently observed vertical restraint in ecommerce, namely that brand manufacturers partially or completely prohibit that retailers distribute their high-quality products over the internet. Our analysis is based on the assumption that a consumer’s purchasing...

Persistent link: https://www.econbiz.de/10011744921

Salience in retailing : vertical restraints on internet sales

Helfrich, Magdalena; Herweg, Fabian - 2017 - This version: August 14, 2017

Persistent link: https://www.econbiz.de/10011717196

Demand shifts due to salience effects: Experimental evidence

Dertwinkel-Kalt, Markus; Köhler, Katrin; Lange, Mirjam … - 2016

We conduct a laboratory experiment that tests two fundamental predictions unique to salience theory. If an agent purchases one of two vertically differentiated products, salience theory makes the following two distinct predictions. First, it hypothesizes that a higher expected price level for...

Persistent link: https://www.econbiz.de/10011445131

Demand shifts due to salience effects : experimental evidence

Dertwinkel-Kalt, Markus; Köhler, Katrin; Lange, Mirjam; … - 2016

Persistent link: https://www.econbiz.de/10011445057

Relative thinking in consumer choice between differentiated goods and services and its implications for business strategy

Azar, Ofer H. - In: Judgment and Decision Making 6 (2011) 2, pp. 176-185

exhibit a decision-making bias of ``relative thinking'': relative price differences affect them even when economic theory …. Sometimes subjects are affected only by relative price differences (``full relative thinking'') and sometimes also by absolute … price differences (``partial relative thinking''). This behavior has implications for various disciplines, and it is …

Persistent link: https://www.econbiz.de/10008855788

Do consumers make too much effort to save on cheap items and too little to save on expensive items? experimental results and implications for business strategy

Azar, Ofer H. - Volkswirtschaftliche Fakultät, … - 2009

The article presents an experiment that illustrates a behavior that I denote “relative thinking.” Subjects in the … courses seems to mitigate relative thinking. Several alternative explanations for the observed behavior are suggested and … discussed, but the conclusion is that only the relative thinking explanation can account for the experimental results. Finally …

Persistent link: https://www.econbiz.de/10008583579