Understanding reference points to make purchase decisions: overview, phases, and time-features

Abstract

The examination of reference hasn’t been examined thoroughly from the domain of consumer decision-making process, as in the literature; there is a lack of research to examine the use of reference points in a wider variety of attributes, targeted to specific decision-making sequences. As such, the current research introduces a new approach on trying to examine the effects of reference points (RPs) on consumer buying decision process that rely on three time frame dimensions, ex-ante, ex-interium and ex-post. The methodology that has been adopted is a case study analysis following the principles of Bayesian analysis that tries to bring out the effects of reference points in the consumer purchasing decision process. The findings show that consumers' preferences for reference points are established and structured throughout the entire buying decision process, and can be modified based on potential signals and biased approaches. We are prompted to examine the crafting of RPs beyond their physical or tangible attributes due to these implications. Knowledge of the consumers’ assessment, about the use of the triangle framework of reference points, could be effectively used by different policy makers, in order to promote and guide consumers in a more efficient way. As a result, there are now many possibilities for casual modeling practice in the future.