Effects of Participative Pricing on Consumers' Cognitions and Actions: A Goal Theoretic Perspective

Abstract

Using a goal theoretic approach we examine how goal-related mind-sets influence consumers' reactions to participative pricing mechanisms (where consumers participate in price determination; e.g., auctions) relative to economically equivalent, fixed price offers. We show that the congruence between individuals' notions of high-perceived control over shopping situations and participative price environments produces an implementation-oriented mind-set that influences cognitions and intentions. In the absence of such congruence, we can independently create implemental mind-sets that replace the natural deliberative thinking of consumers contemplating a purchase. Demonstrating the subtle yet powerful role mind-sets play in dictating thought and action is a unique contribution of this research.