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Initial Financial Plan Price and Perceived Value of Ongoing Financial Planning Services

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  • Tharp, Derek

Abstract

This study experimentally investigates whether the price of an initial financial plan influences consumer perceptions of the value of ongoing financial planning services. Using a sample of Amazon Mechanical Turk workers (N = 602), evidence of anchoring effects were observed. In particular, free initial plans were associated with higher perceived value than plans offered at costs of $1,000, $2,000, or $3,000. This finding goes against common industry notions that charging for an initial plan will increase the perceived value of financial planning services. Rather, offering initial plans at prices that are far below the long-term value of ongoing financial planning services may result in an anchoring effect that diminishes a consumer’s perceptions of the value of ongoing services.

Suggested Citation

  • Tharp, Derek, 2022. "Initial Financial Plan Price and Perceived Value of Ongoing Financial Planning Services," SocArXiv gxbka, Center for Open Science.
    • Handle: RePEc:osf:socarx:gxbka
    DOI: 10.31219/osf.io/gxbka
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    References listed on IDEAS

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    1. Joseph K. Goodman & Gabriele Paolacci, 2017. "Crowdsourcing Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(1), pages 196-210.
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