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The Zero-Comparison Effect

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  • Mauricio M. Palmeira

Abstract

This research investigates the effect of a zero-value attribute on consumer choice. It is argued that a zero attribute removes a reference point that consumers use to evaluate the size of attribute differences. As a consequence, the shift from a number to zero can make an advantage (or disadvantage) that seemed large and clear in the presence of a reference point become less clear and thus less impactful when a reference point is removed. This leads to an interesting effect, whereby an option can improve its choice share by increasing the level of an undesirable attribute from zero or decreasing the level of a desirable attribute to zero. A series of four experiments provide supporting evidence for this new choice phenomenon.

Suggested Citation

  • Mauricio M. Palmeira, 2011. "The Zero-Comparison Effect," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(1), pages 16-26.
    • Handle: RePEc:oup:jconrs:doi:10.1086/657998
    DOI: 10.1086/657998
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    Cited by:

    1. Euy-Young Jung & Chulwoo Baek & Jeong-Dong Lee, 2012. "Product survival analysis for the App Store," Marketing Letters, Springer, vol. 23(4), pages 929-941, December.
    2. Juan Nicolau, 2012. "Battle royal: Zero-price effect vs relative vs referent thinking," Marketing Letters, Springer, vol. 23(3), pages 661-669, September.
    3. 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.
    4. Ju-Young Kim & Katharina Kaufmann & Manuel Stegemann, 2014. "The impact of buyer–seller relationships and reference prices on the effectiveness of the pay what you want pricing mechanism," Marketing Letters, Springer, vol. 25(4), pages 409-423, December.
    5. Marcel Lichters & Paul Bengart & Marko Sarstedt & Bodo Vogt, 2017. "What really matters in attraction effect research: when choices have economic consequences," Marketing Letters, Springer, vol. 28(1), pages 127-138, March.
    6. Mao, Wen, 2016. "Sometimes “Fee” Is Better Than “Free”: Token Promotional Pricing and Consumer Reactions to Price Promotion Offering Product Upgrades," Journal of Retailing, Elsevier, vol. 92(2), pages 173-184.
    7. Nina Mazar & Kristina Shampanier & Dan Ariely, 2017. "When Retailing and Las Vegas Meet: Probabilistic Free Price Promotions," Management Science, INFORMS, vol. 63(1), pages 250-266, January.

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