Purpose – The objective of this paper is to propose and empirically test a potential mechanism for how consumers form reference prices. The proposed peak‐end rule of reference price formation says that reference prices are formed as a weighted average of the highest observed price and the...

Purpose While existing research has established various methods for pricing, the impact of a manager’s individual psychological profile on his/her price setting behavior is relatively unexamined. This is especially critical in the context of pricing decisions implemented in response to...

Purpose Research in marketing has extensively examined the signaling effects of product warranties on consumer perceptions. Although this stream of research has focused on initial product warranties offered by the manufacturer, studies of extended warranties, which protect consumers against...

Purpose Every year, millions of consumers around the world become victims of credit card fraud. These individuals have to appeal to their credit card companies to reverse unauthorized charges. This study aims to profile the American consumers’ experience when complaints to their credit card...