A Conceptual Framework for Price Expectations
In this section, we conceptualize that the heterogeneity in either of updating processes by levels of effort that consumers invest in processing information. We also examine various factors that impact consumers’ effort level.
However, for POST to play an important role in purchase decisions, it requires more individual effort in information processing. This is because after observing store prices, participants have to reconsider the alternative options of buying in another store (or buying later in the same store) and compare with current prices to make purchase decisions. This allows people to decide whether to postpone the purchase and avoid potential regret at a later time. Therefore, only a stronger motivation (e.g., a higher expected benefit from the purchases) would cause participants put in the requisite effort in information processing. As a result, their price expectations are likely to be updated with observed store price changes and, once expectations are updated, they are also likely to reconsider their outside options by comparing the updated POSTs with store prices.
A Conceptual Framework for Price ExpectationsIn this section, we conceptualize that the heterogeneity in either of updating processes by levels of effort that consumers invest in processing information. We also examine various factors that impact consumers’ effort level.However, for POST to play an important role in purchase decisions, it requires more individual effort in information processing. This is because after observing store prices, participants have to reconsider the alternative options of buying in another store (or buying later in the same store) and compare with current prices to make purchase decisions. This allows people to decide whether to postpone the purchase and avoid potential regret at a later time. Therefore, only a stronger motivation (e.g., a higher expected benefit from the purchases) would cause participants put in the requisite effort in information processing. As a result, their price expectations are likely to be updated with observed store price changes and, once expectations are updated, they are also likely to reconsider their outside options by comparing the updated POSTs with store prices.
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