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Abstrack

A study on the change of consumers'  acceptable price in a price cues and prior knowledge of reference price advertising

 

Yoo, Pil Hwa, Ph.D.
Professor
Dept. of Business Administration
SungKyunKwan University

Kim, Eun Jung, Ph.D.
Part time Instructor
Dept. of Business Administration
SungKyunKwan University

 

Reference price ads is controversial practice that pervade the consumer environment and receives a great deal of attention from managerial interests.   Therefore, the purpose of this study is to study change of consumer's acceptable price level and range by price cues and prior knowledge of reference price ads.

Based on the results of experiment design, the followings are founded: first, the plausible price cues reference price ads improved subject acceptable price level.  Second, the expert tended to have narrower acceptable price range and high acceptable price level, upper limit and lower limit than the novice. Third, the expert is raised acceptable price level by plausible external reference price cues and no external reference pric cues.  And the novice is raised acceptable price by an exaggerated external reference price cues.