• The Effects of Consumers’ Incidental Emotions on Their Perceptions of Advertised Reference Prices

Abstract

Building on previous research, this study proposes that emotion affects the preference for advertised reference prices among consumers. The empirical results demonstrate that study participants in whom a transient positive emotional state is induced by the remembrance of a pleasant event or story tend to perceive a greater transaction value for an advertisement with a reference price than do those in whom a transient negative emotional state is induced. Viewing a short film increases the range of emotion that is experienced by participants beyond that experienced by those who only remember an event; however, both methods produce identical results in inducing an emotional state. Finally, this study suggests that the extent to which consumers use reference price information as an indicator of quality sacrifice or monetary gain is a function of consumer emotions.

Keywords: Positive Emotion, Negative Emotion, Reference Price