Size Does Matter: The Effects of Magnitude Representation Congruency on Price Perceptions and Purchase Likelihood

Abstract

The numerical cognition literature suggests that numerical stimuli (and hence prices) are represented and encoded in memory as magnitude representations (i.e., judgments of relative “size”). The magnitude representation associated with the numerical value of a price may be the same as (congruent) or different from (incongruent) the magnitude representation associated with some other related dimension. We conducted 3 experiments to examine the effects of congruent versus incongruent magnitude representations on price perceptions and purchase intentions. We find that congruent magnitude representations result in more favorable price knowledge (i.e., greater value perceptions and lower price judgments) and increased purchase likelihood. Our findings suggest that consumers are not consciously aware of the role of magnitude representations in influencing price perceptions.