Improving pricing scope through consumers’ construal level – evidence based on consumers’ willingness-to-pay ranges

Abstract

How can the pricing scope be further leveraged in times of increased price transparency and growing price awareness on the consumer side? To answer this question, this paper uses the concept of willingness-to-pay ranges (as opposed to points). Three quantitative studies show that various marketing activities that allow consumers to assess a product on a more abstract (less concrete) level shift the upper limits of the intervals upwards and thus increase the scope for price setting. These (price) upper limits are particularly high when the central product advantages are emphasized.