Up, up and away! The metaphor of verticality and the moderating role of regulatory focus in price assessments
DOI:
https://doi.org/10.1108/REGE-05-2020-0042Keywords:
Metaphor of verticality, regulatory focus, pricing decisionsAbstract
Purpose: The primary objective of this study was to analyze the effects of the metaphor of verticality on how individuals assess prices, having regulatory focus as a moderator of this relationship.
Design/methodology/approach: Two experiments were conducted with a 2x2 between-subjects design (metaphor of verticality: physically higher vs. physically lower x regulatory focus: promotion vs. prevention). The second study performed moderated mediation by incorporating the self-esteem variable.
Findings: The results show that the Treatment Group consisting of prevention-focused individuals who consider themselves physically higher assessed prices according to what was proposed for the study compared to the group consisting of promotion-focused individuals who consider themselves physically lower. Participants in Treatment Group 1 attributed the lowest prices to products, demanded more significant discounts in order to go to another store searching for a product and considered the prices more unfair.
Originality/value: The primary contribution of this study is to reveal that the position of one’s body on the vertical axis influences their thoughts and, therefore, their decision-making in the scope of products and services prices. Moreover, regulatory focus can attenuate such effects.
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