...Jay P. Carlson; Larry D. Compeau Purpose Prior research has demonstrated that reference prices can affect consumer responses, but the reference prices examined have been presented along with semantic cues [e.g. manufacturer’s suggested retail price (MSRP) and Compare At]. This study is unique...

... in the auction. Internet auctions, both English style and reverse, constitute one of the success stories of digital commerce. Design/methodology/approach – As its method of research, this paper uses an experimental approach to explore the effects of multiple reference prices. Findings – While...

...Peter De Maeyer; Hooman Estelami Purpose The objective of this paper is to propose and empirically test a potential mechanism for how consumers form reference prices. The proposed peak‐end rule of reference price formation says that reference prices are formed as a weighted average of the highest...