Categorization and willingness to pay for new products: the role of category cues as value anchors

Kuijken, B, Gemser, G and Wijnberg, N 2017, 'Categorization and willingness to pay for new products: the role of category cues as value anchors', Journal of Product Innovation Management, vol. 34, no. 6, pp. 757-771.


Document type: Journal Article
Collection: Journal Articles

Title Categorization and willingness to pay for new products: the role of category cues as value anchors
Author(s) Kuijken, B
Gemser, G
Wijnberg, N
Year 2017
Journal name Journal of Product Innovation Management
Volume number 34
Issue number 6
Start page 757
End page 771
Total pages 15
Publisher Wiley-Blackwell Publishing, Inc.
Abstract This study focuses on textual category cues and their influence on consumers' willingness to pay for new products. It examines whether an anchoring effect occurs when consumers are provided with textual category cues that refer consumers toward a particular product category. This article argues that consumers' willingness to pay for a product under consideration will tend toward the average price of products in the category in which it is positioned. This average price acts as a reference point that influences consumers' willingness to pay. We hypothesize that the more innovative the product is, the less certain the consumer is about its properties. Therefore, the proposed anchoring mechanism will influence consumers' willingness to pay strongly when the product is radically innovative, while the willingness to pay for an incrementally innovative product will not be affected by the proposed anchoring mechanism. Our hypotheses are tested by means of four experiments using online auctions in which consumers actually pay when they win an auction. The findings provide support for the role of category cues as "semantic anchors." More specifically, giving the cues of categories in which the products had higher average monetary value compared to cues of categories in which the average monetary value was lower, resulted in an increased consumers' willingness to pay for radically new products. As expected, this effect was not found in the case of incrementally new products. The article concludes with theoretical and managerial implications.
Subject Marketing Management (incl. Strategy and Customer Relations)
DOI - identifier 10.1111/jpim.12414
Copyright notice © 2017 Product Development & Management Association
ISSN 1540-5885
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 0 times in Thomson Reuters Web of Science Article
Scopus Citation Count Cited 0 times in Scopus Article
Altmetric details:
Access Statistics: 15 Abstract Views  -  Detailed Statistics
Created: Wed, 19 Sep 2018, 13:27:00 EST by Catalyst Administrator
© 2014 RMIT Research Repository • Powered by Fez SoftwareContact us