Published Article / The question often arises as to how aware consumers are of prices of products and how much they are willing to pay for particular products. Research indicates that 'excellent value for money' is rated as the number one priority by consumers. In economically challenging conditions, tourists have become more price sensitive and prices charged will influence their decision-making. South Africa, as a destination, must ensure that prices charged for tourism products meet tourists' expectations and therefore research on the price perceptions in relation to major products that international tourists spend money on whilst on holiday, becomes important. As point of departure, it should be possible to establish the difference, if any, between what the tourists expected to pay for specific tourism products, and what they actually paid.

This dissertation focuses on contextual frames that influence how consumers perceive prices and how that in turn affects their product evaluations and consumption decisions. This research consists of three essays and attempts to further the understanding of contextual factors that affect how consumers perceive prices (essay 1) and how perceptions about prices influence product inferences (essay 2) and decision making (essay 3). While there is a substantial body of research on price framing and price perception, my research identifies and attempts to fill some important gaps in the existing research. In my first essay, I introduce a new price framing effect – the upper limit framing effect. This essay shows that framing the upper limit of a price estimate as less than vs. not more than can result in systematic differences in perceptions regarding the underlying price. This research contributes to the existing price framing research, which primarily focuses on set prices, by investigating price estimates. It also makes important contributions to the temporal and monetary costs and semantic framing literatures and to the literature on negations. In my second essay, I contribute to the existing perceived price-quality research that primarily concerns only the market prices. This essay shows that consumers over-apply the perceived price-quality heuristic when setting product prices by themselves (self-decided prices). Specifically, this research shows that contextual factors that affect self-decided prices in turn influence product inferences, with the relationship between contextual frame and product inferences being mediated by self-decided prices. In my third essay, I contribute to the existing price framing research by showing that in the context of multiple price presentation, the price presentation order (ascending vs. descending) affects the perceived importance of price in the decision making – an effect I term as the price order effect – an effect that is explained by prospect-theory driven loss aversion. Specifically, this research shows that descending (vs. ascending) price presentation order results in significantly lower perceived importance of price in the decision making process which in turn influences subsequent consumption decisions. In addition to the individual contributions of each essay, this dissertation makes an overall contribution to the price framing and price perception research by identifying new price framing effects and by furthering the understanding of how consumers perceive prices and how perceptions about price influences consumer decision making. / Doctor of Philosophy / This dissertation shows how different contexts can influence consumers’ perceptions about product prices. Utilizing a variety of everyday consumption products and scenarios, we show new and interesting ways in which seemingly unrelated contexts and frames can influence price perceptions. Specifically, we show that novel contexts and frames can affect (a) how consumers perceive price magnitude (essay 1), (b) how perceptions about prices influences product inferences (essay 2), and (c) how important a factor is price perceived to be in the decision making process (essay 3). Essay 1 shows that framing the upper limit of a cost estimate as (“less than” vs. “not more than”) results in different perceptions about the underlying cost. Essay 2 shows that counter to intuitive expectations, consumers utilize prices that they themselves decide to pay for a product as being indicative of its quality. Essay 3 shows that ascending vs. descending price orders results in different consumption decisions due to differential perceived importance of price in the decision making. This dissertation also discusses the several important contributions made by this research.

An investigation into whether the colour red has more impact or leads to common perceptions about the price or value of retail products in advertising. / ABSTRACT Colour is often an important non verbal cue in advertising. Much research has been dedicated to the creative aspects of advertising generally and to factors affecting consumer response in relation to marketing, advertising and pricing. This study looks at the colour red and investigates whether use predominant use of red in sale promotions print advertising is justified on the basis of its ability to impact cognitively or affectively. The study comprises of two experiments, one for awareness and one for price perception and purchase intent. In each experiment, red is compared to other colours in order to establish any significant differences. The second experiment goes further to examine whether the intensity of colour, verbal cues or demographic differences have an impact on the results. The literature review begins with an examination of price theory and the role of sales promotions in organizations. It considers advertising response models with focus on the persuasive hierarchy AIDA model. The impact of colour is then considered along with consumer psychology and behavior as well as theories relating to demographic and cultural responses to colour in advertising. Argument from the sources is then put forward to suggest that research into the effects of colour in advertising is underexplored and that the role of colour in affecting response is complex and is over oversimplifies by advertising practitioners. The research results are presented revealing few significant differences between red and alternative colours for awareness, price perception or purchase intent. The result for awareness is blurred by research limitations, but red does not emerge as a candidate for exacting higher levels of awareness than a number of other colours. In the second experiment, red is found to be inferior to blue in affecting purchase intent. Red at 50% saturation is shown to have a more positive impact on purchase intent that a red hue at full saturation. Demographic splits do not show conclusive results, but it is suggested that a larger sample size would induce a better price perception of red for the black community than for other racial groupings. Discussion and recommendations follow. In this study, red shows no qualities to justify its predominant use in price promotion advertising and more benefit might be obtained for the brand by differentiating through use of alternative colours that may stand out in a sea of red over traditional sale periods. The principle recommendations are, firstly, the need to acquire a deeper understanding of the effect of colour in advertising. In the more complex, competitive global marketplace competition for customer attention is high and the margin of error for irrelevant advertising appeals are low. Secondly, the argument is made for colour usage to be built around long term branding concerns rather than short term requirements for advertising response.

An investigation into whether the colour red has more impact or leads to common perceptions about the price or value of retail products in advertising. / ABSTRACT Colour is often an important non verbal cue in advertising. Much research has been dedicated to the creative aspects of advertising generally and to factors affecting consumer response in relation to marketing, advertising and pricing. This study looks at the colour red and investigates whether use predominant use of red in sale promotions print advertising is justified on the basis of its ability to impact cognitively or affectively. The study comprises of two experiments, one for awareness and one for price perception and purchase intent. In each experiment, red is compared to other colours in order to establish any significant differences. The second experiment goes further to examine whether the intensity of colour, verbal cues or demographic differences have an impact on the results. The literature review begins with an examination of price theory and the role of sales promotions in organizations. It considers advertising response models with focus on the persuasive hierarchy AIDA model. The impact of colour is then considered along with consumer psychology and behavior as well as theories relating to demographic and cultural responses to colour in advertising. Argument from the sources is then put forward to suggest that research into the effects of colour in advertising is underexplored and that the role of colour in affecting response is complex and is over oversimplifies by advertising practitioners. The research results are presented revealing few significant differences between red and alternative colours for awareness, price perception or purchase intent. The result for awareness is blurred by research limitations, but red does not emerge as a candidate for exacting higher levels of awareness than a number of other colours. In the second experiment, red is found to be inferior to blue in affecting purchase intent. Red at 50% saturation is shown to have a more positive impact on purchase intent that a red hue at full saturation. Demographic splits do not show conclusive results, but it is suggested that a larger sample size would induce a better price perception of red for the black community than for other racial groupings. Discussion and recommendations follow. In this study, red shows no qualities to justify its predominant use in price promotion advertising and more benefit might be obtained for the brand by differentiating through use of alternative colours that may stand out in a sea of red over traditional sale periods. The principle recommendations are, firstly, the need to acquire a deeper understanding of the effect of colour in advertising. In the more complex, competitive global marketplace competition for customer attention is high and the margin of error for irrelevant advertising appeals are low. Secondly, the argument is made for colour usage to be built around long term branding concerns rather than short term requirements for advertising response.

Syftet med den här uppsatsen är att se om hyllplacering i vertikalled är en faktor som påverkar en konsuments prisuppfattning av varan i fråga. I denna kvantitativa studie så undersöks detta fenomen på kaffeförpackningar och diskmedel. För att undersöka detta så genomfördes en enkät-undersökning på 100 personer som fick svara på bakgrundsfrågor om bland annat sina köpvanor, samt skatta pris och lyx-faktorn på 3 bilder och totalt 45 produkter. Undersökningen visade mycket men inte att hyllplaceringen hade någon betydande inverkan på prisuppfattningen. / The purpose of this paper is to see if shelf-space is a factor influencing a consumer's price perception of the product in question. This quantitative study examined this phenomenon in coffee packaging and detergent. To examine this, a questionnaire survey was answered by 100 people who were asked questions about their background and their purchasing habits, and also estimate the price and the luxury factor of three images and a total of 45 products. The survey showed a lot but not that shelf-space had any significant influence on price perception.

Abstract This study mainly investigated the changing of pricing leverage of brand among different situations, especially, among distinctive product categories and among various levels of product knowledge which consumers obtained. Firstly, the research tries to verify existence of the hypothesized pricing leverage of brand; that is to test (1) the influences of levels of brand awareness on consumers¡¦ price perception; and (2) the effect of brand awareness on consumers¡¦ tolerance over the price increasing. In addition, this research manipulates three other variables, namely: product category, product knowledge which consumer obtained, and consumers¡¦ involvement toward the product in interest, as to seek and explore the conditions on which the pricing leverage of brand can occur. As experimentation is the method of this study, it utilizes a 3 ( brand awareness: high, middle, low) x 3 ( product category: convenience goods, shopping goods, specialty goods) x 2 ( product knowledge: much, little) x 2 (involvement: high, low) factorial design as its basic framework of experiment design. A focus group depth interview discussion, which participants were from target subject group, was held to collect the appropriate or suitable products, brands, pricing levels, product information, and product attributes, ... etc. The products eventually used in the experiments are six items: fresh milk, toilet tissue, hand-bag, leisure shoes, watch, and digital camera. According to the products chosen, the brand names are selected based on the levels of awareness in the markets in which the subject purchase. The subjects of the experiments are 144 students of National Sun Yat-sen University located in Kaohsiung, Taiwan. There are 815 entries of data obtained from the subject in the experiments. Factor analysis, ANOVA, and MANOVA are used to analyze the data obtained from the experiment. The analysis findings support several propositional statements, including (1) the higher level of market awareness a brand enjoys, the higher price perception consumers acquire for it; (2) Among the difference product categories, the effect of price leverage of brand varies; (3) there is no influence from the magnitude of product knowledge which consumer obtained on the price leverage of brand.

Titel: Hur står sig de billigare substituten emot premium produkter? Nivå: C-uppsats i ämnet företagsekonomi Författare: Giancarlo Mancuso & John Gustafsson Handledare: Jonas Kågström Datum: 2012 – Maj Syfte: Syftet med denna uppsats är att vi vill undersöka hur de billigare substituten står sig emot premium produkter genom att ställa de emot varandra i ett blindtest föreslagits av tidigare forskning Ogenyi Ejye (1994). Vi vill veta om det finns en stor skillnad mellan de billigare varianterna och de premier produkterna enligt tidigare gjord forskning. Metod: Vi har utfört ett experiment i form av ett blindtest där vi sätter fyra olika Cola sorter emot varandra. Under genomförandet av experimentet har vi använt oss utav enkäter för att samla in data. Detsamma gäller för vår webb undersökning. Resultat & slutsats: Det vi kom fram till i vår undersökning är att varumärken påverkar oss konsumenter både positivt och negativt. Vi kan tydligt se i det blinda testet att det inte skiljer sig så mycket mellan premier produkterna och de billigare substituten när det kommer till smaken. Men i det visuella testet kan vi se en tydlig skillnad mellan de olika sorterna. Vidare visade vår undersökning att det genomsnittliga priset som våra deltagare var villiga att betala för de olika produkterna ligger över det faktiska priset i både det visuella och det blinda testet. Förslag till fortsatt forskning: En intressant vidare forskning skulle vara att ta samma deltagare och genomföra två olika experiment på dem. Den ena skulle vara ett blindtest där deltagarna är omedvetna om vad det är de dricker och det andra skulle vara ett visuella test där deltagarna är medvetna om vilket varumärke det är de dricker, därefter jämföra resultatet. En annan vidare forskning i detta sammanhang skulle vara att undersöka WTA(Willingness To Accept) för att se vilket pris man som konsument skulle vara villig att betala.  Uppsatsens bidrag: Det vi kom fram till är att skillnaden mellan de olika Cola sorter inte är så stora när man tar bort varumärket. Det är ett bevis på att de billiga substituten börjar matcha det premium produkterna i form av smak preferenser. Vi ser också hur viktigt det är att skapa ett starkt varumärke. Nyckelord: Brand, Brand Equity, Willingess to Pay, Consumer price perception, Pricepremium / Title: How do the cheaper substitutes withstand the premium products? Level: Degree in Business Administration Author: Giancarlo Mancuso & John Gustafsson Supervisor: Jonas Kågström Date: Maj – 2012 Aim: The purpose of this paper is to investigate how cheaper substitutes hold up to premium products by comparing them to each other in a blind test suggested by previous research Ogenyi Ejye (1994). We want to know if there is a major difference between the cheaper versions and the premium products in accordance with previous research. Method: The research had been done in the form of a blind test. Four different Cola varieties and have been compared against each other using a survey to collect data. This form of testing applied to our online survey as well. Result & Conclusions: The conclusion of our study is that brands do affect us as consumers, both in a positive and negative way. We could clearly see that in the blind test between the premium products and the cheaper substitutes there was not much of a difference in taste. In the visual test we could clearly see a difference between the products. Furthermore this research has shown that our participants are willing to pay more than the actual retail price for this product in both the visual and blind test. Suggestions for future research: It would be interesting with further research to take the same participants and perform two different experiments on them. One could be a blind test and the second could be in a visual test. During which the participants are aware of what they taste to see if there would be a major difference between the results. It would also be interesting to see research done using WTA (Willingness to Accept) in this context.  Contribution of the thesis: Our research has shown that there is not a great difference between the tastes of the products. It has given further proof that the cheaper substitute products are delivering almost the same quality as the premium product, which shows how important it is to build strong brand equity. Key words: Brand, Brand Equity, Willingness to Pay, Consumer price perception, Price premium

This research is the outcome of a preeminent interest in the topic of price perception. Pointedly, the perception of prices is part of the purchasing process, the same willingness to pay and the actual purchase behaviour, and is indubitably a perceptual construct. As such, perception is problematic to measure as it does not relate to an observable behaviour. On the other hand, pricing is regarded as an important variable in the marketing mix. This research contributes to theory by augmenting the current knowledge on the perception of prices including the methods used in the measurement of such perception. Moreover, this research addresses a gap in the understanding of how diverse ethnic groups perceive prices. The relationship set in this study between ethnicity and price perception is thought-provoking as it contributes to the current discussion around diversity in the marketplace. For example, the literature shows advances in areas such as multicultural and ethnic marketing and this research makes a significant contribution to these areas from price perception. Accordingly, this study involved a systematic review of the literature and presented a framework that suggested that the formation of price perception is affected by external factors such as culture and ethnicity. Furthermore, a qualitative study examined the formation of price perception around ethnic groups. Next, this research used a quantitative study that sought differences in price perception among ethnic groups. Thus, the quantitative study used a price perception scale (Lichtenstein et al., 1993) and a choice-based conjoint analysis. Also, the study adopted structural equation modelling (SEM) to measure differences among scales and the multinomial logit model to analyse the choice-based conjoint analysis. The findings of both the quantitative and the qualitative studies link to the systematic review and support the framework for the formation and measurement of price perception originally proposed.

This research is the outcome of a preeminent interest in the topic of price perception. Pointedly, the perception of prices is part of the purchasing process, the same willingness to pay and the actual purchase behaviour, and is indubitably a perceptual construct. As such, perception is problematic to measure as it does not relate to an observable behaviour. On the other hand, pricing is regarded as an important variable in the marketing mix. This research contributes to theory by augmenting the current knowledge on the perception of prices including the methods used in the measurement of such perception. Moreover, this research addresses a gap in the understanding of how diverse ethnic groups perceive prices. The relationship set in this study between ethnicity and price perception is thought-provoking as it contributes to the current discussion around diversity in the marketplace. For example, the literature shows advances in areas such as multicultural and ethnic marketing and this research makes a significant contribution to these areas from price perception. Accordingly, this study involved a systematic review of the literature and presented a framework that suggested that the formation of price perception is affected by external factors such as culture and ethnicity. Furthermore, a qualitative study examined the formation of price perception around ethnic groups. Next, this research used a quantitative study that sought differences in price perception among ethnic groups. Thus, the quantitative study used a price perception scale (Lichtenstein et al., 1993) and a choice-based conjoint analysis. Also, the study adopted structural equation modelling (SEM) to measure differences among scales and the multinomial logit model to analyse the choice-based conjoint analysis. The findings of both the quantitative and the qualitative studies link to the systematic review and support the framework for the formation and measurement of price perception originally proposed.

Within the competitive marketing environment, companies are faced with many challenges to stay competitive. Companies are consistently trying to establish the longterm relationship with customers by satisfying them as much as possible. Since relationship marketing has highly-discussed concerns building the long-term relationship and improve customer satisfaction, the study aims to describe how different relationship marketing tactics affect customer satisfaction. According to previous scholars, four different major relationship marketing tactics were selected to investigate and described in the study, which are the quality of service, price perception, brand perception and value proposition. The authors developed a theoretical framework by reviewing previous works of literature to see how companies use relationship marketing tactics as a business strategy to develop customer satisfaction. The method of quantitative research was applied to this study and a online questionnaire was used to collect data. In results chapter, the authors tested descriptive analysis, reliability, validity, regression analysis by analyzing the empirical findings. There are three hypotheses accepted and one rejected. In the end of this paper, the authors analyzed and described the data in detail and revealed the effect of each relationship marketing tactics on customer satisfaction. Limitation of this study and further research are also presented.