IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/264237.html
   My bibliography  Save this article

How do pricing and the representation of price affect consumer evaluation of nursery products? A conjoint analysis

Author

Listed:
  • Zhu, Zhiwen
  • Behe, Bridget
  • Huddleston, Patricia
  • Sage, Lynnell

Abstract

This study investigates how pricing and the representation of price (location of price sign, area of price number on price sign, extrinsic cue on price sign) influence consumer evaluation of nursery products. An incomplete orthogonal set of levels for each factor was used in a 35 factorial conjoint analysis. A web-based survey was conducted in March 2015. The results show the four factors account for 50.24% of the variance in plant preference, the other factor (plant type) accounts for the remaining 49.76%. Relative importance decreases from price level (16.15%) to cue (12.27%) to area (11.04%) and location (10.79%). Consumer’s purchase intention varies by demographics. The price level-purchase intention relationship also depends on cue. Benefit cue is more likely to offset the adverse effect of a price increase on purchase intention than feature cue, and the price level-purchase intention relationship for plants with feature/benefit cue appears to be inverted U shape.

Suggested Citation

  • Zhu, Zhiwen & Behe, Bridget & Huddleston, Patricia & Sage, Lynnell, 2017. "How do pricing and the representation of price affect consumer evaluation of nursery products? A conjoint analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), March.
    • Handle: RePEc:ags:ifaamr:264237
    DOI: 10.22004/ag.econ.264237
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264237/files/ifamr2017.0003.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/264237/files/ifamr2017.0003.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.264237?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Manoj Thomas & Daniel H. Simon & Vrinda Kadiyali, 2010. "The Price Precision Effect: Evidence from Laboratory and Market Data," Marketing Science, INFORMS, vol. 29(1), pages 175-190, 01-02.
    2. F. Thomas Juster, 1966. "Consumer Buying Intentions and Purchase Probability: An Experiment in Survey Design," NBER Books, National Bureau of Economic Research, Inc, number just66-2.
    3. Puccinelli, Nancy M. & Chandrashekaran, Rajesh & Grewal, Dhruv & Suri, Rajneesh, 2013. "Are Men Seduced by Red? The Effect of Red Versus Black Prices on Price Perceptions," Journal of Retailing, Elsevier, vol. 89(2), pages 115-125.
    4. Behe, Bridget K. & Bae, Mikyeung & Huddleston, Patricia T. & Sage, Lynnell, 2015. "The effect of involvement on visual attention and product choice," Journal of Retailing and Consumer Services, Elsevier, vol. 24(C), pages 10-21.
    5. Andre Gabor & C. W. J. Granger, 1961. "On the Price Consciousness of Consumers," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 10(3), pages 170-188, November.
    6. Zeithaml, Valarie A, 1982. "Consumer Response to In-Store Price Information Environments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(4), pages 357-369, March.
    7. Campbell, Benjamin L. & Behe, Bridget K. & Khachatryan, Hayk & Hall, Charles R. & Dennis, Jennifer H. & Huddleston, Patricia T. & Fernandez, R. Thomas, 2013. "Incorporating Eye Tracking Technology and Conjoint Analysis to Better Understand the Green Industry Consumer," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150431, Agricultural and Applied Economics Association.
    8. Manoj Thomas & Vicki Morwitz, 2005. "Penny Wise and Pound Foolish: The Left-Digit Effect in Price Cognition," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(1), pages 54-64, June.
    9. Lillian L. Cheng & Kent B. Monroe, 2013. "An appraisal of behavioral price research (part 1): price as a physical stimulus," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 103-129, September.
    10. Lillian L. Cheng & Kent B. Monroe, 2013. "Some reflections on an appraisal of behavioral price research (part 1)," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 155-159, September.
    11. Keith S. Coulter & Robin A. Coulter, 2007. "Distortion of Price Discount Perceptions: The Right Digit Effect," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(2), pages 162-173, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huddleston, Patricia & Coveyou, Mary Tuski & Behe, Bridget K., 2023. "Visual cues during shoppers’ journeys: An exploratory paper," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    2. Santana, Shelle & Thomas, Manoj & Morwitz, Vicki G., 2020. "The Role of Numbers in the Customer Journey," Journal of Retailing, Elsevier, vol. 96(1), pages 138-154.
    3. Jun Yao & Harmen Oppewal & Di Wang, 2020. "Cheaper and smaller or more expensive and larger: how consumers respond to unit price increase tactics that simultaneously change product price and package size," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1075-1094, November.
    4. Keith S. Coulter, 2013. "Commentary on: “an appraisal of behavioral price research (Part I)”," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 135-140, September.
    5. Feng, Shan & Suri, Rajneesh & Chao, Mike Chen-Ho & Koc, Umit, 2017. "Presenting comparative price promotions vertically or horizontally: Does it matter?," Journal of Business Research, Elsevier, vol. 76(C), pages 209-218.
    6. Ellen J Van Loo & Carola Grebitus & Rodolfo M Nayga & Wim Verbeke & Jutta Roosen, 2018. "On the Measurement of Consumer Preferences and Food Choice Behavior: The Relation Between Visual Attention and Choices," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 40(4), pages 538-562, December.
    7. Huddleston, Patricia T. & Behe, Bridget K. & Driesener, Carl & Minahan, S., 2018. "Inside-outside: Using eye-tracking to investigate search-choice processes in the retail environment," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 85-93.
    8. Choi, Pilsik & Coulter, Keith S., 2012. "It's Not All Relative: The Effects of Mental and Physical Positioning of Comparative Prices on Absolute versus Relative Discount Assessment," Journal of Retailing, Elsevier, vol. 88(4), pages 512-527.
    9. Meng, Charlotte C., 2023. "The price paid: Heuristic thinking and biased reference points in the housing market," Journal of Urban Economics, Elsevier, vol. 134(C).
    10. Mao, Zhixin & Duan, Yongrui & Liu, Wenxia, 2023. "Consumers’ choice of private label considering reference price and moderating effect," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    11. Zhenling Jiang, 2022. "An Empirical Bargaining Model with Left-Digit Bias: A Study on Auto Loan Monthly Payments," Management Science, INFORMS, vol. 68(1), pages 442-465, January.
    12. Robert Sinclair & Jess Diamond, 2022. "Basic food and drink price distributions transcend time and culture," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-7, December.
    13. Cardella, Eric & Seiler, Michael J., 2016. "The effect of listing price strategy on real estate negotiations: An experimental study," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 71-90.
    14. Manoj Thomas, 2013. "Commentary on behavioral price research: the role of subjective experiences in price cognition," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 141-145, September.
    15. Seung Hwan (Shawn) Lee, 2019. "An Exploration of Initial Purchase Price Dispersion and Service-Subscription Duration," Sustainability, MDPI, vol. 11(9), pages 1-14, April.
    16. Yao, Jun & Oppewal, Harmen, 2016. "Unit Pricing Increases Price Sensitivity Even When Products are of Identical Size," Journal of Retailing, Elsevier, vol. 92(1), pages 109-121.
    17. Jensen, Birger Boutrup & Grunert, Klaus G., 2014. "Price Knowledge During Grocery Shopping: What We Learn and What We Forget," Journal of Retailing, Elsevier, vol. 90(3), pages 332-346.
    18. DelVecchio, Devon & Lakshmanan, Arun & Krishnan, H. Shanker, 2009. "The Effects of Discount Location and Frame on Consumers’ Price Estimates," Journal of Retailing, Elsevier, vol. 85(3), pages 336-346.
    19. Schmidt, Karolin & Kösling, Philipp & Bamberg, Sebastian & Blöbaum, Anke, 2022. "A Prospect Theory-based experimental vignette methodology for exploring rebound effects and rebound-damping interventions," Ecological Economics, Elsevier, vol. 193(C).
    20. Morlotti, Chiara & Mantin, Benny & Malighetti, Paolo & Redondi, Renato, 2024. "Price volatility of revenue managed goods: Implications for demand and price elasticity," European Journal of Operational Research, Elsevier, vol. 312(3), pages 1039-1058.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:264237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.