Abstract
Reference price theories provide behavioral explanations of certain dynamic price effects. These theories postulate that consumers compare internal prices (reference prices) to observed actual prices. Together with other factors this comparison determines purchase decisions (Winer 1988). Consumers consider reference prices that lie above actual prices as gain. On the other hand, if reference prices lie below actual prices, consumers feel a loss. Favorable (unfavorable) evaluation of observed prices of a brand increases (decreases) its market share.
This is a revised English version of a paper written in German (Natter, Hruschka 1997).
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Natter, M., Hruschka, H. (1998). Using Artificial Neural Nets to Specify and Estimate Aggregate Reference Price Models. In: Aurifeille, JM., Deissenberg, C. (eds) Bio-Mimetic Approaches in Management Science. Advances in Computational Management Science, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-2821-7_7
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