The idea that consumers compare posted prices with a reference price to evaluate brand prices has both intuitive appeal and empirical support. Several studies have attempted to measure this reference price using behavioural data, but few employ declarative data. Using experimental data for a new food product, this study demonstrates that defining an individual price by the mean of price limits has nomological and predictive validity. This findings have managerial implications; they allow for the evaluation of prices not tested in split-tests.
DESMET, P. (2010). An Individual measure of reference price using price limits. In: Proceedings of the European Marketing Academy (EMAC) Conference. Copenhagen Business School.