Contextual influences on perceptions of merchant-supplied reference prices

Two contextual variables that have theoretical roots in information processing, attribution, and social judgment theories were manipulated along with three levels of merchant-supplied reference price in a 2 x 2 x 3 analysis of variance design. Results support the hypothesized effects of consistency and distinctiveness as contextual variables that influence internal price standards and purchase evaluations. The three price levels resulted in a curvilinear pattern of results for the purchase evaluation and source credibility dependent variables, as hypothesized. However, contrary to assimilation-contrast theory, the impact of the merchant-supplied reference price on estimates of normal and fair prices was monotonic.