In this essay we review the evidence from marketing research about price presentation of consumer products and discuss how these lessons have been applied—consciously or unconsciously—in the design of the U.S. tax system. Our perspective is that, in most situations, the designers of the tax...

Why sexual assaults and car accidents are associated with the consumption of alcohol mixed with energy drinks (AMED) is still unclear. In a single study, we show that the label used to describe AMED cocktails can have causal non-pharmacological effects on consumers’ perceived intoxication,...

Ads promising a desired change are ubiquitous in the marketplace. These ads typically include visuals of the starting and ending point of the promised change (“before/after” ads). “Progression” ads, which include intermediate steps in addition to starting and ending points, are much...

Much of experimental research in marketing has focused on individual choices. Yet in many contexts, the outcomes of one’s choices depend on the choices of others. Furthermore, the results obtained in individual decision making context may not be applicable to these strategic choices. In this...

Vanity sizing, the practice of clothing manufacturers, whereby smaller size labels are used on clothes than what the clothes actually are, has become very common. Apparently, it helps sell clothes — women prefer small size clothing labels to large ones. We propose and demonstrate that smaller...

There has been a recent swell of interest in marketing as well as psychology pertaining to the role of sensory experiences in judgment and decision making. Within marketing, the field of sensory marketing has developed which explores the role of the senses in consumer behavior. In psychology,...

Research has shown that brands with higher deal frequency obtain a smaller market share gain on deal and have a lower expected price. However, the level of dealing must be perceived by consumers before it can affect consumer response to promotions. Hence, perception of deal frequency may affect...

One of the key decisions a manager must make in designing a coupon promotion is to decide on the face value. In this study we examine the effects of higher face values on coupon redemption timing, category purchase timing, the mix of buyers who redeem the coupon, and purchase quantity. Data from...

Research has shown that there is heterogeneity in consumer knowledge of prices and deals. In addition, it has been found that buyers' purchase behavior can be influenced not only by the current price of a product, but also by what prices they expect in the future. The author builds a purchase...