How to attract customers by giving them the short end of the stick

Journal of Marketing Research

Volumn 44, Issue 1, 2007, Pages 128-141

  Lo, Alison K C ^a   Lynch, John G ^b   Staelin, Richard ^b,c  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^b Department of Marketing ^*  (United States)

^c DUKE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34247201646     PISSN: 00222437     EISSN: None     Source Type: Journal    
DOI: 10.1509/jmkr.44.1.128     Document Type: Article

References (37)

1. Alba, Joseph W. and Alan D.J. Cooke (2004), "When Absence Begets Inference in Conjoint Analysis," Journal of Marketing Research, 41 (November), 382-87.
2. _, John Lynch, Bart Weitz, Chris Janiszewski, Richard Lutz, Alan Sawyer, and Stacy Wood (1997), "Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces," Journal of Marketing, 61 (July), 38-53.
3. Anderson, Eric and Duncan Simester (2001), "Price Discrimination as an Adverse Signal: Why an Offer to Spread Payments May Hurt Demand," Marketing Science, 20 (3), 315-27.
4. _ and _ (2005), "How Do Consumers Respond to Paying a Higher Price Than Others?" working paper, Kellogg Graduate School of Management, Northwestern University.
5. _ and _ (in press), "Does Demand Fall When Customers Perceive That Prices Are Unfair: The Case of Premium Pricing for Large Sizes," Marketing Science, forthcoming.
6. Bolton, Lisa E., Luk Warlop, and Joseph W. Alba (2003), "Explorations in Price (Un)Fairness," Journal of Consumer Research, 29 (March), 474-91.
7. Broniarczyk, Susan M. and Joseph W. Alba (1994), "The Role of Consumers' Intuitions in Inference Making," Journal of Consumer Research, 21 (December), 393-407.
8. Campbell, Margaret (1999), "Perceptions of Price Unfairness: Antecedents and Consequences," Journal of Marketing Research, 36 (May), 187-99.
9. Chernev, Alexander and Gregory S. Carpenter (2001), "The Role of Marketing Efficiency Intuitions in Consumer Choice: A Case of Compensatory Inferences," Journal of Marketing Research, 38 (August), 349-61.
10. Corfman, Kim P. and Donald R. Lehmann (1993), "The Importance of Others' Welfare in Evaluating Bargaining Outcomes," Journal of Consumer Research, 20 (June), 124-37.
11. Darke, Peter and Darren Dahl (2003), "Fairness and Discounts: The Subjective Value of a Bargain," Journal of Consumer Psychology, 13 (3), 328-38.
12. Dick, Alan, Dipankar Chakravarti, and Gabriel Biehal (1990), "Memory-Based Inferences During Consumer Choice," Journal of Consumer Research, 17 (June), 82-93.
13. Feinberg, Fred, Aradhna Krishna, and John Zhang (2002), "Do We Care What Others Get? A Behaviorist Approach to Targeted Promotions," Journal of Marketing Research, 39 (August), 277-91.
14. Feldman, Jack and John Lynch (1988), "Self-Generated Validity of Other Effects of Measurement on Belief, Attitude, Intention and Behavior," Journal of Applied Psychology, 73 (3), 421-35.
15. Hsee, Christopher (1996), "The Evaluability Hypothesis: An Explanation for Preference Reversals Between Joint and Separate Evaluations of Alternatives," Organizational Behavior & Human Decision Processes, 67 (3), 247-57.
16. Huber, Joel and John M. McCann (1982), "The Extent to Which Inferential Beliefs Affect Product Evaluations," Journal of Marketing Research, 19 (August), 324-33.
17. Johar, Gita Venkatramani and Carolyn J. Simmons (2000), "The Use of Concurrent Disclosures to Correct Invalid Inferences," Journal of Consumer Research, 26 (March), 307-322.
18. Kardes, Frank (1988), "Spontaneous Inference Processes in Advertising: The Effects of Conclusion Omission and Involvement on Persuasion," Journal of Consumer Research, 15 (2), 225-33.
19. Katzman v. Victoria's Secret Catalogue (1996), 167 F.R.D. 649, United States District Court, New York (June 25).
20. Kirmani, Amna and Peter Wright (1989), "Money Talks: Perceived Advertising Expense and Product Quality," Journal of Consumer Research, 16 (3), 244-53.
21. Kivetz, Ran and Itamar Simonson (2000), "The Effects of Incomplete Information on Consumer Choice," Journal of Marketing Research, 37 (November), 427-48.
22. _ and _ (2003), "The Idiosyncratic Fit Heuristic: Effort Advantage as a Determinant of Consumer Response to Loyalty Programs," Journal of Marketing Research, 40 (November), 454-67.
23. Lancaster, Kelvin (1971), Consumer Demand: A New Approach. New York: Columbia University Press.
24. Lichtenstein, Donald, Scot Burton, and Bradley S. O'Hara (1989), "Marketplace Attributions and Consumer Evaluations of Discount Claims," Psychology and Marketing, 6 (3), 163-80.
25. Lo, Alison K.C. (2006), "Using Targeted Promotions to Attract Non-Targeted Customers," working paper, Fuqua School of Business, Duke University.
26. Loewenstein, George, Leigh Thompson, and Max Bazerman (1989), "Social Utility and Decision Making in Interpersonal Contexts," Journal of Personality and Social Psychology, 57 (3), 426-41.
27. Murphy, Sean (2000), "Fastskin Fastalk: Hype or Help?" ABC News Online, adapted from a 7.30 Report story, (April 19), (accessed October 16, 2006), [available at www.abc.net.au/news/olympics/features/fastskin. htm].
28. Nelson, Fraser (2000), "Safeway Chief Fuels Loyalty Card Rift and Profits Fall 29%," The Times, (May 18), 29.
29. Nelson, Philip (1974), "Advertising as Information," Journal of Political Economy, 82 (4), 729-54.
30. Novemsky, Nathan and Maurice E. Schweitzer (2004), "What Makes Negotiators Happy? The Differential Effects of Internal and External Social Comparisons on Negotiator Satisfaction," Organizational Behavior and Human Decision Process, 95 (November), 186-97.
31. Raghubir, Priya, Jeffery Inman, and Hans Grande (2004), "The Three Faces of Consumer Promotions: Economic, Informative, and Affective," California Management Review, 46 (4), 1-19.
32. Ross, William T., Jr., and Elizabeth H. Creyer (1992), "Making Inferences About Missing Information: The Effects of Existing Information," Journal of Consumer Research, 19 (June), 14-25.
33. Silverstein, Michael and Neil Fiske (2005), Trading Up: Why Consumers Want New Luxury Goods-and How Companies Create Them. New York: Penguin Group.
34. Simmons, Carolyn J. and John G. Lynch Jr. (1991), "Inference Effects Without Inference Making? Effects of Missing Information on Discounting and Use of Presented Information," Journal of Consumer Research, 17 (March), 477-91.
35. Simonson, Itamar, Ziv Cannon, and Suzanne O'Curry (1994), "Experimental Evidence on the Negative Effect of Product Features and Sales Promotions on Brand Choice," Marketing Science, 13 (1), 23-40.
36. The Wall Street Journal (2000), "Amazon.com Varies Prices of Identical Items for Test," (September 7), B19.
37. Wong, Paul T.P. and Bernard Weiner (1981), "When People Ask 'Why' Questions, and the Heuristics of Attributional Search," Journal of Personality and Social Psychology, 40 (4), 650-63.