In this chapter we review two distinct streams of literature, the numerical cognition literature and the judgment and decision making literature, to understand the psychological mechanisms that underlie consumers' responses to prices. The judgment and decision making literature identifies three...

Over 25 years ago Hoch (1988) found that every day consumers performed poorly at predicting the attitudes, interests, and opinions (AIO) of average Americans. We examined whether every day consumers’ predictive accuracy has changed in any substantive way since then, given the massive increase...

A common objective of social science and business research is the modeling of the relationship between demographic/psychographic characteristics of individuals and the likelihood of certain behaviors for these same individuals. Frequently, data on actual behavior are unavailable; rather, one has...

Purchase intentions are routinely used to forecast sales of existing products and services. While past studies have shown that intentions are predictive of sales, they have only examined the absolute accuracy of intentions, not their accuracy relative to other forecasting methods. For example,...

Consumers' budgets are influenced by the temporal frame used for the budget period. Budgets planned for the next month are much lower than recorded expenses, while those for the next year are closer to recorded expenses (study 1). The difficulty of estimating budgets for the next year imparts...

We find that exposure to different types of categories or assortments in a first task creates a mindset that changes how consumers process information. These mindsets in turn, have a spillover effect that alters consumers' decision making in a variety of subsequent and unrelated tasks, from...

Many firms divide a product's price into two mandatory parts, such as the base price of a mail-order shirt and the surcharge for shipping and handling, rather than charging a combined, all-inclusive price. The authors call this strategy partitioned pricing. Although firms presumably use...

What explains the emergence of nativist and populist movements across the globe? From the election of Donald Trump to the vote for Brexit, pundits wonder how and why these unforeseen outcomes came to pass. Why were people so surprised about these outcomes? Why do people sometimes vote against...

Consumer research often fails to have broad impact on members of our own discipline, on adjacent disciplines studying related phenomena, and on relevant stakeholders who stand to benefit from the knowledge created by our rigorous research. We propose that impact is limited because consumer...