Reference prices and consumers' feeling of regret: an investigation of consumers' use of an online price‐bidding method

Abstract

AbstractThe purpose of the research was to provide a better understanding of the impacts of relevant information on consumers' emotions when bidding their prices through an online Name‐Your‐Own‐Price method. Specifically, based on the tenets of the Decision Justification Theory, the study examined whether participants felt more regret about a negative outcome when reference prices were available. The research hypotheses were tested in two experiments. The results indicated that the availability of reference prices significantly affected participants' feelings of regret about a negative outcome.