The Influence of Spatial Position of Price Sequences on Choice and Value Perceptions

Abstract

In this research, we extend findings from the numerical cognition literature to explore and test how retail spatial arrangement of prices can influence value perceptions and choice. Specifically, we demonstrate that presenting options in an ordered price sequence increases consumers’ preference for higher priced items depending on the spatial direction of the display. The results of two studies provide evidence that in horizontal displays, consumers are more likely to select the higher-priced items when prices follow a descending (vs. ascending) sequence. In contrast, when the products are arranged in a vertical format, consumers are more likely to select the higher-priced items when the products are presented in ascending order (vs. descending). The findings of this paper have important implications for retail product displays and menu designs.

In this research, we extend findings from the numerical cognition literature to explore and test how retail spatial arrangement of prices can influence value perceptions and choice. Specifically, we demonstrate that presenting options in an ordered price sequence increases consumers’ preference for higher priced items depending on the spatial direction of the display. The results of two studies provide evidence that in horizontal displays, consumers are more likely to select the higher-priced items when prices follow a descending (vs. ascending) sequence. In contrast, when the products are arranged in a vertical format, consumers are more likely to select the higher-priced items when the products are presented in ascending order (vs. descending). The findings of this paper have important implications for retail product displays and menu designs.