In this section, we apply dual-process models of information processing to develop hypotheses that address issues related to our research objective. We conceptualize that the heterogeneity in the primacy of either of the two price expectations in purchase decisions and updating processes for the expectations are driven by the different levels of effort that consumers invest in processing information. We also examine various factors that impact consumers’ effort level. Applying the dual-process models to our online store context, we note that the internal reference price (PRIOR) refers it the price that participants expect to pay in the store prior to his/her exposure to the actual price. This expectation may be formed based on past experiences. As we shall explain in the next section, the expected price of alternative purchasing options (POST) is collected after participants have finished shopping. While forming PRIORs and planning which products to purchase require effort, it is relatively automatic and effortless to recall PRIORs when participants are inside the store. Dual-process models suggest that the readily available PRIOR is used first to compare with current prices; hence, it will be a major determinant in consumer purchase decisions.