Social-Spatial Effects in Pricing: When and How Vertical Orientations Shape Processing of Price Comparisons

Abstract

Marketers frequently compare a product’s sale price against its regular price to accentuate perceptions of value. The effectiveness of these price comparisons is predicated on consumers sufficiently processing the deal’s depth (i.e., the regular price − sale price differential). Although research indicates consumers can generally make such assessments, we document an exception when price comparisons are presented in a format that aligns with the vertical orientation of consumers. The correspondence between vertical price comparisons and the mindsets of individuals who value social hierarchies (i.e., who are vertically oriented) induces a sense of “fit” that reduces processing and leads to similar responses to the offer regardless of deal depth. This effect manifests regardless of whether vertical orientations are measured as a chronic state or temporarily primed. Supporting our theorizing, vertically oriented participants report paying less attention and being less motivated to process price comparisons. Theoretical implications of these findings are discussed as are suggestions for future research examining how social views may shape consumer processing of product attribute and point-of-purchase information.

Appendices

Appendix 1. Measures Used in All Studies

1.1 Study 1

Vertical-horizontal orientation (vertical subscale α = .78; horizontal subscale α = .83):

• 1. I’d rather depend on myself than others.

• 2. I rely on myself most of the time; I rarely rely on others.

• 3. I often do “my own thing.”

• 4. My personal identity, independent of others, is very important to me.

• 5. It is important that I do my job better than others*.

• 6. Winning is everything*.

• 7. Competition is the law of nature*.

• 8. When another person does better than I do, I get tense and aroused*.

• 9. If a coworker gets a prize, I would feel proud.

• 10. The well-being of my coworkers is important to me.

• 11. To me, pleasure is spending time with others.

• 12. I feel good when I cooperate with others.

• 13. Parents and children must stay together as much as possible*.

• 14. It is my duty to take care of my family, even when I have to sacrifice what I want*.

• 15. Family members should stick together, no matter what sacrifices are required*.

• 16. It is important to me that I respect the decisions made by my groups*.

*denotes vertical orientation.

Intentions to purchase (endpoints: 1 = “not at all likely,” 9 = “very likely”)

Assuming you were in market to buy a pizza cutter, how likely would you be to purchase the Pro Pizza cutter at the sale price?

1.2 Study 2

Vertical-horizontal orientation—see study 1 (vertical subscale, α = .76; horizontal subscale, α = .67)

Intentions to purchase—see study 1

Attention to the sales price (endpoints: 1 = “very little,” 9 = “very much”)

As you were reading the information, how much attention did you pay to the sale price of the Pro Pizza cutter?

Covariates:

SES: Please select the social class of the family you grew up in from the following: “1 = Lower class, 2 = Lower middle class, 3 = Middle class, 4 = Upper middle class, 5 = Upper class”

Sex: male, female.

1.3 Study 3

Deal evaluation (r = .66, p < .001)

Assuming you were in the market to buy floss, how likely would you be to purchase the DentyFloss floss at the sale price? (1 = “not at all likely,” 9 = “very likely”)

At the sale price, the DentyFloss floss is 1 = “not a good deal,” 9 = “a great deal”

Processing motivation (endpoints: 1 = “not at all,” 9 = “a lot”)

Please indicate how you felt while reviewing the information about the DentyFloss floss: “Motivated,” “Involved” (r = .56, p < .001)

Appendix 2. Sample Stimuli Used in Studies

Studies 1 and 2—High Discount Condition

Study 3—High Discount Condition