Antecedents and Consequents of the Anchoring Effect in Store Brand vs. National Brand Context: An Abstract
Consumers are not able to process all the information from the environment to make their decisions. Therefore, in uncertain situations, people follow up judgment heuristics to simplify their decisions (Tversky and Kahneman 1974). Those heuristics are a mechanism that helps to simplify the decision process, and one of this heuristics is known as anchoring an adjustment. The anchoring effect is a judgment where we consider an anchor point to do estimations. That is, a different start point makes people change their estimations, because there are biases to the anchor (Jacowitz and Kahneman 1995). Then, the purpose of this work is to measure the anchoring index in the context of national brand and store brand prices. In other words, the National Brand price working as an anchor for the consumer estimation of the Store Brand price. Furthermore, to identify the antecedents and the consequents of this Anchoring Process.
The study uses a structured questionnaire to gather data from 192 individuals from Portugal and 220 individuals from the United States of America. Furthermore, a structural equation modeling is used to test the proposed hypotheses. The results show that the consumer behavior has a positive impact on brand equity. Such as antecedents, price sensitivity has a negative impact on anchoring, hedonistic behavior has a positive impact on anchoring, brand equity of the national brand has a positive impact on anchoring, and brand equity of the store brand has no impact on anchoring. Such as consequents, anchoring has a positive impact on purchase intention, and anchoring has a negative impact on switching intention. In addition, a chain of indirect effects is presented.
The findings allowed the better understanding of the impacts of the studied variables on anchoring process. The overall results may support private label’s managers to understand the consumer’s perception toward their brands, such as the uncertainty toward the store brands compared to the national brands. In addition, to understand that the consumer, in uncertainty situations, may use judgmental heuristics to solve their tasks. This work is a new approach of anchoring index measurement, identifying how an individual may do estimations in an uncertain environment. Furthermore, this study integrates concepts and relationships in a single empirical study with relevant data, providing a model that illustrates a chain of important effects, between antecedents and consequents of the anchoring in a context of store brands versus national brands.
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