Roger M. Heeler

High‐low context cultures and price‐ending practices

Purpose – Retail prices ending in 0, 5 (even ending), and 9 (odd ending) are common in western countries. The purpose of this paper is to explain variances in odd versus even ending practices in western versus non‐western countries, using Halls high‐low context construct.Design/methodology/approach – A survey of web‐posted prices in ten countries is conducted.Findings – Relative to their counterparts in low context, western cultures, consumers in high context, non‐western cultures may be less prone to the illusion of cheapness or gain created by odd endings, and more likely offended by such perceived attempts to “fool” them. Thus, odd endings are predicted to operate at a higher level of value significance to consumers, and to occur less frequently relative to even endings, in high than low, context cultures. Data support the predictions.Research limitations/implications – Additional empirical studies are recommended to further test the proposed theory.Practical implications – Western firms need to be ca...

Bundles = discount? Revisiting complex theories of bundle effects

Purpose – The paper seeks to propose and test a theory of the psychological impact of price bundling that is derived from bundlings economic impact. It is called the inferred bundle saving hypothesis. In the absence of explicit information about bundle savings, consumers infer a bundle saving when presented with a bundle offer. It is suggested that inferred bundle saving provides a simple, parsimonious explanation for pre‐ and post‐purchase bundle effects.Design/methodology/approach – The theory is tested in two laboratory studies that employ partial replications of two prior price bundle studies.Findings – The results show that the inferred bundle saving effect is robust in both product and service contexts, and can potentially explain the bundle effects found in these two studies.Research limitations/implications – Additional experimental studies are recommended to further test the proposed theory.Practical implications – First, contrary to convention, it is not always optimal for firms to integrate pr...

Analysis Techniques for Exploratory Use of the Multitrait-Multimethod Matrix

Methods for analyzing the multitrait-multimethod matrix are reviewed and the results of their application to a classic data set are compared. It is shown that different analysis methods can yield different validity conclusions, and that the results obtained are partly dependent on the subjective judgments of the users. It is proposed that several analysis methods should be used in tandem on each data set and their results should be examined for convergence. Multitrait-multimethod matrices should be examined in an exploratory as well as validity testing mode so as not to waste their rich data content.

Consumer perceptions of bundles

Purpose – The purpose of this paper is to test inferred bundle saving versus loss aggregation as explanations of consumer evaluations of bundles. Inferred bundle saving posits that consumer impressions of bundles are anchored in the daily economic reality that collections of goods as bundles are usually marketed at a discount to the same collection not bundled. Loss aggregation theory posits that consumers perceive an aggregation of prices as being less than the sum of its parts because they perceive prices as losses, and losses have a concave value perception; that is a small loss is perceived as large relative to its physical amount.Design/methodology/approach – Previous research has shown that inferred bundle saving is a plausible alternative to loss aggregation. This research tests the two theories against each other in three experimental studies where they make opposite predictions. A meta‐analysis of the first two studies provides added evidence.Findings – The predictions of inferred bundle saving w...

Switching commuters from car to public transit: a micro modelling approach

Abstract This paper examines the perceptions and values of commuters in Toronto concerning public transit and the private car. Interviews were conducted at an office location readily accessible by car, bus or subway. Respondents were characterized by their predominant commuting mode and provided ratings of the perceived benefits of the modes available. Respondents then completed a conjoint analysis task designed to estimate their trade-offs, or the extent to which they were prepared to sacrifice on one aspect of a commuting journey in order to gain on another. The conjoint analysis used a fractional factorial design allowing main effects and two way interactions to be estimated. The conjoint analysis methodology is used to develop benefit segments and evaluate methods of marketing public transit.

Language and Its Effects on Advertising Modality: The Case of Chinese and English

Abstract This study examines how visual and musical stimuli contribute to perceived trendiness of the commercial across native Chinese- and English-speakers. Research results indicate that, though visual stimuli have stronger effects on both Chinese- and English-speakers, visual stimuli have stronger effects on Chinese-speakers than English-speakers. These findings are consistent with suggested differences between the Chinese and English language that could have affected the processing orientation of native speakers. The implications of the results are discussed.