Math anxiety and its effects on consumers' preference for price promotion formats

Rajneesh Suri, Kent B. Monroe, Umit Koc

Research output: Contribution to journalArticlepeer-review

Abstract

This research examines whether preference for certain price presentations observed in past research could be explained by either consumers' math anxiety or their math abilities. Previous research suggests that math anxiety not only increases tendencies to make computational errors but also influences cognitive abilities to make numerical judgments. In four studies we document an effect of math anxiety whereby price promotions, whose net prices are simply derived, like those in a dollars-off format, were preferred over a competing percentage-off format. We explain this effect in terms of consumers' inability to expend cognitive resources due to their math anxiety rather than their math ability. We also identify a boundary condition with such effects of math anxiety occurring when price information is presented in a computationally complex manner and when consumers are making important product judgments.

Original languageEnglish (US)
Pages (from-to)271-282
Number of pages12
JournalJournal of the Academy of Marketing Science
Volume41
Issue number3
DOIs
StatePublished - Jan 1 2013

Keywords

  • Behavioral price research
  • Math anxiety
  • Numerical information processing

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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