Who I am and how I think: The impact of self‐construal on the roles of internal and external reference prices in price evaluations

Abstract

Abstract Drawing from self‐construal studies on cognitive styles as well as reference price literature, this research investigates the impact of independent versus interdependent self‐construal on consumers' use of internal reference prices (IRPs) and external reference prices (ERPs) during price evaluations. Three experiments reveal that IRPs have a larger impact on price evaluations for participants who are primed with an independent (vs. interdependent) self‐construal, whereas ERPs have a larger impact for participants who are primed with an interdependent (vs. independent) self‐construal. The differential impact of self‐construal on the use of IRPs and ERPs seems to be mediated by a generalized, perceived sense of connectedness/separateness. Implications on reference price research, self‐construal and cognitive styles are discussed.