AMA's Journal of Marketing Articles 2010 PDF

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Manoj K. ” Journal of Marketing, 68 (October), 126–41. Simester, Duncan, Yu (Jeffrey) Hu, Eric Brynjolfsson, and Eric T. Anderson (2009), “Dynamics of Retail Advertising: Evidence from a Field Experiment,” Economic Inquiry, 47 (3), 482–99. Simon, Carol J. and Mary W. Sullivan (1993), “The Measurement and Determinants of Brand Equity: A Financial Approach,” Marketing Science, 12 (1), 28–52. Simpson, Ana V. (2008), “Voluntary Disclosure of Advertising Expenditures,” Journal of Accounting, Auditing and Finance, 23 (3), 404–436.

Marketingpower. ) This discussion suggests that referent thinking can lead to a reversal of the relative-thinking effect as long as deviations from the reference point are of a small or moderate level. However, when these deviations become extreme, relative thinking will emerge again. These ideas are encapsulated in the following two propositions: P2: A referent-thinking effect holds when Consumer A observes a low actual price and Consumer B observes a high actual price but both perceive a moderate deviation from the reference price (A perceives the price as moderately lower than expected, but B perceives the price as moderately higher than expected).

The evidence in favor of relative thinking is conclusive (Azar 2007); this effect has been replicated in different settings with different types of participants (Mowen and Mowen 1986; Ranyard and Abdel-Nabi 1993). However, boundary conditions do exist. For example, relative thinking diminishes when the level of absolute saving is high (Moon, Keasey, and Duxbury 1999), when the percentage saving is small (Darke and Freedman 1993), or when it is difficult to evaluate the value of a sales promotion in relation to the focal product or its price (Nunes and Park 2003).

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