Ronald W. Niedrich

Reference Price and Price Perceptions: A Comparison of Alternative Models

Reference price effects on consumer price perceptions are often explained by Helsons adaptation-level theory, in which the cognitive representation of reference price is the prototype of the relevant category. However, recent conceptualizations and empirical evidence suggest the possibility of an exemplar model, which may be specified using Volkmanns range theory or Parduccis range-frequency theory. In two experiments, these three contextual models of reference price effects are pitted against one another. Based on the MANOVA and model fitting, range-frequency theory accounted for reference price effects that the other theories could not, suggesting that consumers compare the target price against specific members of the category rather than the category prototype. A third experiment demonstrated that range and frequency effects are moderated by the stimulus presentation condition, suggesting that consumers place greater weight on extreme prices anchoring the range for internal reference prices than for external reference prices. Copyright 2001 by the University of Chicago.

Assessing Three Sources of Misresponse to Reversed Likert Items

Data collected through multi-item Likert scales that contain reversed items often exhibit problems, such as unexpected factor structures and diminished scale reliabilities. These problems arise when respondents select responses on the same side of the scale neutral point for both reversed and nonreversed items, a phenomenon the authors call “misresponse.” Across four experiments and an exploratory study using published data, the authors find that misresponse to reversed Likert items averaged approximately 20%, twice the level identified as problematic in previous simulation studies. Counter to prevailing thought, the patterns of misresponse and response latency across manipulated items could not be attributed to respondent inattention or acquiescence. Instead, the pattern supports an item verification difficulty explanation, which holds that task complexity, and thus misresponse and response latency, increases with the number of cognitive operations required for a respondent to compare a scale item with his or her belief. The observed results are well explained by the constituent comparison model.

SPOKES-CHARACTERS : Creating Character Trust and Positive Brand Attitudes

Spokes-characters have appeared in numerous promotion campaigns throughout the past century. While interest in these characters has evolved over time, a substantial portion of the research concerning characters has emerged during this past decade. Yet there exists a research gap concerning the impact of specific spokes-character features on brand-related outcomes. In this study, we address this gap and extend this stream of literature with the first empirical examination of the relationship between specific spokes-character features and brand attitude. Based on the tested moderated mediation model, our results show that spokes-character trust is an important mediator of the effects of spokes-character features on brand attitude. The model also indicates that brand experience significantly moderates the effect of spokes-character trust on brand attitude. Thus, spokes-character features result in more favorable brand attitudes for consumers with less brand experience, whereas spokes-character features have little effect on brand attitudes for consumers with more experience with the brand.

A Framework for Monitoring Customer Satisfaction: An Empirical Illustration

Abstract This article presents an empirical illustration of a framework for monitoring customer satisfaction over time. Three years of data from a customer satisfaction program of a large Fortune 500 firm is used to illustrate the framework and the associated methodologies. The framework provides management with important insights into monitoring and improving customer satisfaction. Any firm desiring to develop a program for systematically monitoring customer satisfaction easily can adapt the framework.

The Influence of Pioneer Status and Experience Order on Consumer Brand Preference: A Mediated-Effects Model

Within the behavioral literature, two basic explanations of the pioneering advantage have been offered. Early work focused on order-based explanations. More recently, schema-based explanations have also been suggested. The authors propose a mediated-effects model of the pioneering advantage and test the model in two separate longitudinal studies. Both experiments support the proposed model. The authors find that experience order and pioneer-status have additive effects on brand preference such that perceptions of first-in-market and first-experienced brands are more favorable, suggesting that both explanations are operative. The authors also provide evidence that the effects of pioneer status on brand preference are mediated by attitude toward the brand and company credibility, while the effects of experience order on brand preference are mediated by attitude toward the brand and attribute recall. These data support the notion that the effect of pioneer status on brand preference is the result of both brand-level and company-level associations.

Specifying Price Judgments with Range-Frequency Theory in Models of Brand Choice

To construct a price judgment, consumers compare a focal price with one or more reference prices. However, reference price operationalizations in the brand choice literature use single-point summary measures that cannot account for several distributional effects. To account for effects beyond the first moment of the reference price distribution, the authors specify price judgments in models of brand choice in accordance with range–frequency theory. The findings indicate that range–frequency price judgments provide a more complete specification of reference price effects and become more important with an increase in the second and third moments of a reference price distribution. The data also indicate that range effects are stronger for coupon users and frequency effects are stronger for consumers exposed to a trend of prices. The results have several implications for choice modeling, pricing theory, and pricing strategy.

The Role of Mood and Attribute Expectation on Recall: Comparing Broaden-and-Build Theory to the Affect Infusion Model

In this research we investigate the influence of mood on the recall of expected vs. unexpected attributes and test two explanations for the effects (Broaden-and-build Theory vs. the Affect Infusion Model). Central to our understanding of recall is the resource allocation model (Ellis and Ashbrook 1988), which is based on the allocation of cognitive resources such as attention. According to this theory, the more attention given to information at encoding the more accurately this information is recalled. In examining the role of mood and attribute type (unexpected/expected), the resource allocation model predicts the pattern of attribute recall should match the pattern of response times at encoding. That is, regardless of the condition, longer encoding times should result in superior recall. Interestingly, our data did not fit this theory. Thus, the purpose of this research is to evaluate two competing theories that might offer insight as to these interesting recall effects for mood and attribute type.