Up, up and away! The metaphor of verticality and the moderating role of regulatory focus in price assessments

Abstract

PurposeThe purpose of this study is 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/approachTwo experiments were conducted with a 2 × 2 between-subjects design (metaphor of verticality: physically higher vs physically lower × regulatory focus: promotion vs prevention). The second study performed moderated mediation by incorporating the self-esteem variable.FindingsThe 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 to go to another store searching for a product and considered the prices more unfair.Originality/valueThe 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.