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A study investigated consumer prices before and after the introduction of the euro in 2002 by using Benford's Law as a benchmark for price adjustments. Results demonstrate the usefulness of the benchmark for detecting irregularities in prices, and a clear trend towards psychological pricing after the nominal shock of the euro introduction.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.ijresmar.2005.09.002 Byline: Tarek el Sehity, Erik Hoelzl, Erich Kirchler Keywords: Retail pricing; Price endings; Digital analysis Abstract: Retail managers use psychological pricing to make the prices of goods appear to be just below a round number. The euro introduction in 2002, with its various exchange rates, distorted existing nominal price patterns while at the same time retaining real prices. We studied consumer prices before and after the introduction of the euro by using Benford's Law as a benchmark for price adjustments. Results indicate the usefulness of this benchmark for detecting irregularities in prices, and a clear trend towards psychological pricing after the nominal shock of the euro introduction. In addition, the tendency towards psychological prices results in different inflation rates in dependence of the price pattern. Author Affiliation: Department of Psychology, University of Vienna, Austria, Universitaetsstrasse 7, A-1010 Vienna, Austria

Are people more satisfied with decisions to resist or to indulge temptation? We propose that the effect of restraint versus indulgence on decision satisfaction depends on individual differences in lay rationalism, that is, reliance on reason versus feelings to guide decisions. Across 2 pilot studies and 9 main studies (N = 3,264) with different methodologies and various self-control domains, we found consistent evidence that individuals experience higher satisfaction with restraint the more they rely on reason than on feelings. The proposed effect uniquely concerns individual differences in lay rationalism and is independent from individual differences in trait self-control. We also show that authenticity (feeling true to oneself) is the mechanism underlying this effect and rule out self-typicality (acting in ways typical of oneself) as an alternative account. Additionally, we examined downstream consequences of this effect for compensatory authenticity seeking. These findings advance a more nuanced view of self-control based on identity and suggest that the subjective utility of restraint is contingent upon individual differences in reliance on reason versus feelings in decision making. Our research contributes to the understudied topic of the phenomenology of self-control and provides novel insights into its potential downsides for some individuals. We discuss theoretical implications for research on self-control, lay rationalism and authenticity. [ABSTRACT FROM AUTHOR]

Consumer habits critically impact marketing decisions, but they may be misrepresented. Two studies show the effect of habit on consumer behavior is systematically underestimated when measured in hypothetical scenarios. Participants chose between unhealthy and healthy meals (study 1) or grocery items (study 2). Vouchers to food chains representing these items were raffled between participants. In the hypothetical choice condition, participants' choices had no impact on their compensation. In the real choice condition, participants' choices determined which voucher they would receive. In the hypothetical choice condition, the habit to buy healthy food was positively related to the sum of healthy choices. However, as hypothesized, in the real choice condition this relationship was considerably stronger. We suggest that hypothetical contexts misrepresent the contextual cues that trigger habitual behavior. Findings suggest that consumer research in domains sensitive to habits should prefer behavioral measures. Marketing implications regarding preference elicitation (e.g., focus groups, surveys) are described. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the role of different perspectives people take on their past moral and nonmoral behavior. Across two experiments, we show that when people focus on progress toward personal goals, past moral behavior leads to less future moral striving compared to past nonmoral behavior. However, when people focus on commitment toward personal goals, past moral behavior tends to lead to more future moral striving compared to past nonmoral behavior. Our results integrate seemingly contradictive empirical evidence from past research, relying on the overarching theoretical framework of goal regulation theory. [ABSTRACT FROM AUTHOR]

Consumption and payments have been shown to be closely associated in consumers' minds. Based on the idea of 'coupling', it is hypothesized that product-related emotions will differ depending on payment type (i.e. repayment and prepayment). Moreover, it has been suggested that forecasted emotions do not always correspond to experienced emotions. This is tested in a longitudinal experiment, which simulated a saving and credit situation, and assessed forecasted and experienced product-related emotions. As hypothesized, prepayment led to more positive product-related emotions than repayment. Moreover, participants showed some inconsistencies between forecasted and experienced emotions. Implications for marketing and consumer education are discussed. [ABSTRACT FROM AUTHOR]

The paper examines the effect of different payment modes on hedonic post-purchase product evaluations over time. Two theoretical frameworks-mental accounting and cognitive dissonance-suggest such an effect, but are contradictory regarding its direction. Additionally, the paper examines whether prospective consumers are able to correctly predict post-purchase evaluations and the effect of payment mode over time. In an online survey, hedonic evaluations of 346 car owners in three ownership phases (one, two, and three years after purchase) were measured and compared to predictions of 75 prospective car owners. Two different payment modes (down payment vs. installments) were distinguished. Results showed an interaction between payment mode and the hedonic evaluation of the car over time. In the first and third year, the evaluations by both groups were similar; in the second year, the installments group rated their cars more favorably than the down payment group. Neither of the two theoretical frameworks-mental accounting or cognitive dissonance-is sufficient to explain the observed relationship between payment mode and evaluation over time. The results suggest that mental accounting theory should be expanded with elements of cognitive dissonance. Regarding predictions, prospective car owners did not foresee the effect of payment mode on evaluations over time. Mispredictions are of practical relevance because they can influence consumer decisions. © 2011 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]