Reference pricing studies in marketing: A synthesis of research results

Abstract

Reference pricing, a phenomenon of interest to marketing scholars and practitioners alike, represents a growing body of literature in consumer behavior. In this study, we review the reference pricing studies in marketing both qualitatively and quantitatively. Results of the qualitative review provide general insight about the nature of reference pricing studies, constructs used, and measurement techniques employed. Inconsistencies and ways for improving this stream of research are offered based on this part of the review. The quantitative review provides insight about the average magnitude of statistical effects obtained in reference pricing studies. These average effect levels may be used in an actuarial sense as benchmarks by researchers to evaluate results of future research, as advocated by Sawyer and Ball (1981).