Battle royal: Zero-price effect vs relative vs referent thinking

  title={Battle royal: Zero-price effect vs relative vs referent thinking},
  author={Juan Luis Nicolau},
  journal={Marketing Letters},
  • J. Nicolau
  • Published 17 March 2012
  • Economics
  • Marketing Letters
This article confronts three psychological influences: relative thinking, referent thinking, and the zero-price effect. The experiment conducted in the context of bundles with complementary components, confirms previous evidence around the dominance patterns between relative and referent thinking when the bargain is a discount; however, when the discount is changed to a free product (worth the same as the discount), the zero-price effect arises. Specifically: (1) if actual price coincides with… 
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