Abstract

Using reference price to enhance customers' price perception is one of retailers' favorite marketing method. However, few research is designed to study the relationship among contextual cues, reference price and consumers' price perceptions. This study investigated the effect of reference price and contextual cues on consumers' price perceptions. Need for cognition was examined whether it will moderate the relationship between independent variables and dependent variables. The results of this study concluded that the interaction of contextual cues and reference price can enhance consumers' price perception. Furthermore, need for cognition is a good moderator in the effect of reference price information on consumers' price perception.