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Temporal distance and motivation matter: Effects of psychological distance and left-digit in price evaluation

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Abstract

The aim of this article is to explore how the dimensions of psychological distance and motivation impact the left-digit effect in consumer price evaluation. The left-digit effect occurs when the leftmost digit of the prices being compared changes (e.g., $499 vs. $500); the difference between the prices is perceived as larger than if the leftmost digit does not change (e.g., $569 vs. $570). Furthermore, a nine-ending price may be perceived as larger than a price that is actually one dollar higher, when the motivation to process the price information is high and the psychological distance (temporal distance) is near. Likewise, when the motivation to process information is low, regardless of whether the temporal distance is near or far, consumers are also more likely to process information heuristically, strengthening the left-digit effect. However, when the motivation to deal with information is high and the temporal distance is distant, consumers are more likely to process information systematically which tends to diminish the perceived magnitude of the difference due to the left-digit effect.

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Data Availability

The data that support the findings of this study are available from the corresponding author upon reasonable request.

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Authors and Affiliations

  1. Department of Business Administration, Minghsin University of Science and Technology, No.1, Xinxing Rd., Xinfeng, Hsinchu County, 30401, Taiwan

    Jyh-Wen Wang

  2. Department of Business Administration, National Central University, No 300, Jhongda Rd., Jhongli City, 32001, Taiwan

    Chien-Huang Lin

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  1. Jyh-Wen Wang
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  2. Chien-Huang Lin
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Correspondence to Jyh-Wen Wang.

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All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki Declaration and its later amendments or comparable ethical standards.

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Wang, JW., Lin, CH. Temporal distance and motivation matter: Effects of psychological distance and left-digit in price evaluation. Curr Psychol 42, 11069–11078 (2023). https://doi.org/10.1007/s12144-021-02359-2

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