The Infona portal uses cookies, i.e. strings of text saved by a browser on the user's device. The portal can access those files and use them to remember the user's data, such as their chosen settings (screen view, interface language, etc.), or their login data. By using the Infona portal the user accepts automatic saving and using this information for portal operation purposes. More information on the subject can be found in the Privacy Policy and Terms of Service. By closing this window the user confirms that they have read the information on cookie usage, and they accept the privacy policy and the way cookies are used by the portal. You can change the cookie settings in your browser.
Retailers often display prices in different formats to make them appear more attractive. In some contexts, they can also attach prices to different measurement units—e.g., cereal can be priced at $3.99 per kg or equivalently at $1.36 per lb. In five experimental studies, we show that consumers' perceptions of expensiveness and consumer spending are heavily influenced by the numerical magnitude of...
To retain old customers and promote sales, firms offer trade‐in programs in which consumers bring in an old product and receive a trade‐in rebate when buying a new one. However, after buying the new product, the consumer who has traded in (the “trade‐in consumer”) may return the new product and claim a refund for it if she/he is not satisfied with it. In this situation, under a full‐trade‐in‐return...
In practice, it is not uncommon for a retailer to incentivize consumers to purchase its products by instituting a standing “rewards program” across its product line. These rewards often take the form of earned credit, calculated based on current spending, applicable toward a future purchase. In this article, we show that despite their euphemistic “rewards” label, the future‐credit promotion structure...