The emotional side of price: reference price as a decision maker in consumer purchase

PurposeThe objective of this study is to elucidate the influence of reference price on consumers' willingness to buy (WTB). Additionally, the study seeks to investigate the impacts of consumer perceived value (CPV): emotional, social, and monetary levels in relation to reference price and WTB. Furthermore, it aims to identify the moderating effect of product type, distinguishing between hedonic and utilitarian products.Design/methodology/approachData collection was conducted through an anonymous questionnaire survey using a web-based platform called Prolific. The sample consisted of 258 individuals. The study performed experimental studies to assess the connections among variables and used structural equation modeling as well as Hayes' PROCESS macro models 4 and 8.FindingsPresenting reference price alongside regular prices for products significantly enhances WTB. Furthermore, the mediating effect of the CPV exhibited a significant influence, particularly in the emotional and monetary dimensions but not although the social aspect. Additionally, the findings unveiled substantial variations in the mediating effect of CPV when examining hedonic versus utilitarian products.Research limitations/implicationsPresenting reference price alongside regular prices for products significantly enhances WTB. Furthermore, the mediating effect of the CPV exhibited a significant influence, particularly in the emotional and monetary dimensions but not although the social aspect. Additionally, the findings unveiled substantial variations in the mediating effect of CPV when examining hedonic versus utilitarian products.Originality/valueThe study contributes to the literature by integrating emotional values into pricing strategies. Furthermore, the findings provide insight for managers into establishing a consistent method for implementing price display advertisements on the basis of the product type within the retail industry.