Consumer decision making: A model of the effects of involvement, source credibility, and location on the size of the price difference required to induce consumers to change suppliers

Abstract

Abstract A model is presented for analyzing the effects of involvement, source credibility, and location on consumers' reactions to price changes. The model is based on a schema proposed by Jacoby and Olson (1977) to explain consumers' reactions to price. Evidence is presented that strongly indicates that involvement, source credibility, and location importantly affect the size of the price change required to motivate consumers to switch suppliers.