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Europoly Money: How Do Tourists Convert Foreign Currencies to Make Spending Decisions?

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  • Raghubir, Priya
  • Morwitz, Vicki G.
  • Santana, Shelle

Abstract

This paper examines how tourists convert foreign currencies to make spending decisions. Six studies demonstrate how sequential (Study 1) and simultaneous (Study 2) exposure to nominally different (but economically identical) prices, and the manner in which tourists perform currency conversions (Studies 3–5) influence price perceptions and purchase intentions. Study 6 shows the effects using macroeconomic spending behavior from 1993 to 2008 spanning the introduction of the Euro. The general discussion concludes with a model of how numerical inputs are combined to make judgments as a function of the number of inputs available and their ease of use.

Suggested Citation

  • Raghubir, Priya & Morwitz, Vicki G. & Santana, Shelle, 2012. "Europoly Money: How Do Tourists Convert Foreign Currencies to Make Spending Decisions?," Journal of Retailing, Elsevier, vol. 88(1), pages 7-19.
    • Handle: RePEc:eee:jouret:v:88:y:2012:i:1:p:7-19
    DOI: 10.1016/j.jretai.2011.11.001
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    References listed on IDEAS

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    1. Raghubir, Priya & Srivastava, Joydeep, 2002. "Effect of Face Value on Product Valuation in Foreign Currencies," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(3), pages 335-347, December.
    2. repec:dau:papers:123456789/3583 is not listed on IDEAS
    3. Pierre Desmet, 2002. "A study of the Potential Effects of the Conversion to Euro," Post-Print halshs-00143391, HAL.
    4. Kooreman, Peter & Faber, Riemer P & Hofmans, Heleen M J, 2004. "Charity Donations and the Euro Introduction: Some Quasi-Experimental Evidence on Money Illusion," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(6), pages 1121-1124, December.
    5. Mussweiler, Thomas & Strack, Fritz, 2004. "The Euro in the common European market: A single currency increases the comparability of prices," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 557-563, October.
    6. Giancarlo Marini & Alessandro Piergallini & Pasquale Scaramozzino, 2007. "Inflation bias after the Euro: evidence from the UK and Italy," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 461-470.
    7. Cannon, Edmund & Cipriani, Giam Pietro, 2006. "Euro-Illusion: A Natural Experiment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(5), pages 1391-1403, August.
    8. Mussweiler, Thomas & Englich, Birte, 2003. "Adapting to the Euro: Evidence from bias reduction," Journal of Economic Psychology, Elsevier, vol. 24(3), pages 285-292, June.
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    Cited by:

    1. Schöber, Timo & Stadtmann, Georg, 2020. "Fortnite: The business model pattern behind the scene," Discussion Papers 415, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    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. Priya Raghubir & Mario Capizzani & Joydeep Srivastava, 2017. "What’s in Your Wallet? Psychophysical Biases in the Estimation of Money," Journal of the Association for Consumer Research, University of Chicago Press, vol. 2(1), pages 105-122.
    4. Kim, Hany & Stepchenkova, Svetlana, 2015. "Effect of tourist photographs on attitudes towards destination: Manifest and latent content," Tourism Management, Elsevier, vol. 49(C), pages 29-41.
    5. Benti, Behailu Shiferaw & Haß, Dominik & Stadtmann, Georg, 2021. "Money illusion in free-to-play games," Discussion Papers 422, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.

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