Combining value and price to make purchase decisions in business markets

James C. Anderson; James B.L. Thomson; Finn Wynstra

doi:10.1016/s0167-8116(00)00029-x

Combining value and price to make purchase decisions in business markets

James C. Anderson^*, James B.L. Thomson, Finn Wynstra

^*Corresponding author for this work

Marketing

Research output: Contribution to journal › Article › peer-review

80 Scopus citations

Abstract

The authors investigate how purchasing managers combine information about product offerings' values and prices to make purchase decisions. The results of two field studies show that managers do not regard monetarily-equivalent changes in value and price to be the same. Using reference-dependent theory, the authors show that, rather than a single utility function, separate functions for value and price appear to underlie purchasing managers' decisions. The authors also address means of inducing managers to choose higher-valued, higher-priced product offerings.

Original language	English (US)
Pages (from-to)	307-329
Number of pages	23
Journal	International Journal of Research in Marketing
Volume	17
Issue number	4
DOIs	https://doi.org/10.1016/s0167-8116(00)00029-x
State	Published - Dec 2000

Keywords

Price
Product offering
Purchase decision
Value

ASJC Scopus subject areas

Marketing

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10.1016/s0167-8116(00)00029-x

Cite this

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title = "Combining value and price to make purchase decisions in business markets",

abstract = "The authors investigate how purchasing managers combine information about product offerings' values and prices to make purchase decisions. The results of two field studies show that managers do not regard monetarily-equivalent changes in value and price to be the same. Using reference-dependent theory, the authors show that, rather than a single utility function, separate functions for value and price appear to underlie purchasing managers' decisions. The authors also address means of inducing managers to choose higher-valued, higher-priced product offerings.",

keywords = "Price, Product offering, Purchase decision, Value",

author = "Anderson, {James C.} and Thomson, {James B.L.} and Finn Wynstra",

note = "Funding Information: The authors gratefully acknowledge the financial support of the Institute for the Study of Business Markets, located at Penn State University, and the helpful comments of William Blankemeier, Greg Carpenter, Dawn Iacobucci, Ann McGill, Vikas Mittal and Brian Sternthal, and the colleagues of the Accounting, Finance and Marketing Group at Eindhoven University of Technology. We also want to thank the three reviewers and the editor for their helpful comments and suggestions. ",

year = "2000",

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doi = "10.1016/s0167-8116(00)00029-x",

language = "English (US)",

volume = "17",

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journal = "International Journal of Research in Marketing",

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TY - JOUR

T1 - Combining value and price to make purchase decisions in business markets

AU - Anderson, James C.

AU - Thomson, James B.L.

AU - Wynstra, Finn

N1 - Funding Information: The authors gratefully acknowledge the financial support of the Institute for the Study of Business Markets, located at Penn State University, and the helpful comments of William Blankemeier, Greg Carpenter, Dawn Iacobucci, Ann McGill, Vikas Mittal and Brian Sternthal, and the colleagues of the Accounting, Finance and Marketing Group at Eindhoven University of Technology. We also want to thank the three reviewers and the editor for their helpful comments and suggestions.

PY - 2000/12

Y1 - 2000/12

N2 - The authors investigate how purchasing managers combine information about product offerings' values and prices to make purchase decisions. The results of two field studies show that managers do not regard monetarily-equivalent changes in value and price to be the same. Using reference-dependent theory, the authors show that, rather than a single utility function, separate functions for value and price appear to underlie purchasing managers' decisions. The authors also address means of inducing managers to choose higher-valued, higher-priced product offerings.

AB - The authors investigate how purchasing managers combine information about product offerings' values and prices to make purchase decisions. The results of two field studies show that managers do not regard monetarily-equivalent changes in value and price to be the same. Using reference-dependent theory, the authors show that, rather than a single utility function, separate functions for value and price appear to underlie purchasing managers' decisions. The authors also address means of inducing managers to choose higher-valued, higher-priced product offerings.

KW - Price

KW - Product offering

KW - Purchase decision

KW - Value

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U2 - 10.1016/s0167-8116(00)00029-x

DO - 10.1016/s0167-8116(00)00029-x

M3 - Article

AN - SCOPUS:0012208725

SN - 0167-8116

VL - 17

SP - 307

EP - 329

JO - International Journal of Research in Marketing

JF - International Journal of Research in Marketing

IS - 4

ER -

Combining value and price to make purchase decisions in business markets

Abstract

Keywords

ASJC Scopus subject areas

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