The Anchoring Effects of Temperature Cues on Price Valuations
Michael Barbera, Clicksuasion Labs, USA
Gavin Northey, University of Auckland, New Zealand
Felix Septianto, University of Auckland, New Zealand
Vicki Andonopoulos, University of New South Wales, Australia
Catherine Frethey-Bentham, University of Auckland, New Zealand
The Anchoring Effects of Temperature Cues on Price Valuations
Michael Barbera, Clicksuasion Labs, USA
Gavin Northey, University of Auckland, New Zealand
Felix Septianto, University of Auckland, New Zealand
Vicki Andonopoulos, University of New South Wales, Australia
Catherine Frethey-Bentham, University of Auckland, New Zealand
EXTENDED ABSTRACT
Purpose of this paper
For most humans, the local environment can have a major influence on their attitudes and behaviors. Whether it is the ambient smells (Mitchell, Kahn, & Knasko, 1995), sounds (Spangenberg,Grohmann, & Sprott, 2005), color (Bellizzi & Hite, 1992) or warmth (Huang, Zhang, Hui, & Wyer, 2014), the immediate surrounds play a part in how we feel and the decisions we make.
It is no surprise, then, that weather also has the ability to shape what we think, feel, and do. For example, research has shown weather can influence stock returns (Goetzmann & Zhu, 2005; Jacobsen &Marquering, 2008), retail sales (Starr-McCluer, 2000; Steele, 1951), food consumption (Bruno, Melnyk, & Völckner, 2017; Lucht &Kasper, 1999), helping behaviors (Cunningham, 1979; Rind, 1996) and willingness to pay (Murray, Di Muro, Finn, & Leszczyc, 2010). Importantly, most of the existing research has typically examined the effects of actual weather (Bruno et al., 2017; Goetzmann & Zhu,2005) and ambient temperature (Bruno et al., 2017; Murray et al.,2010). Given that anchoring serves as a heuristic in a cognitive process (Tversky & Kahneman, 1974), it is proposed that psychological traits, such as impulsivity, can influence anchoring effects. This is because impulsivity is associated with how an individual seems to react without an objective reasoning (Dickman, 1990). That is, consumers with high levels of impulsivity are more likely to use such heuristics in making decisions (Cheung, Kroese, Fennis, & De Ridder, 2017; Salmon, Fennis, de Ridder, Adriaanse, & De Vet, 2014).
The current research aims to extend the findings in this area by testing a novel prediction that weather and temperature cues can lead to anchoring effects, thus influencing consumer behavior in a subtle and indirect manner. Specifically, it is proposed that high (vs. low) temperature cues will increase higher levels of price valuations fora given product or service. However, this anchoring effect will be moderated by impulsivity. Further, positive affect will mediate the relationship.
Design/methodology/approach
The research consisted of two studies. Study 1 was a one-factor, six-level (temperature: 31, 32, 39, 81, 83, 89) between-subject design. Guests at a hotel in the United States participated in exchange for a chance to win an additional free night of accommodation. Study 2 was a one-factor, two-level (temperature: 35, 85) between-subject design, conducted to replicate the results of Study 1, test the condition under which the predicted effect might be attenuated (H2) and examine the underlying causal mechanism in the process (H3). That is, increasing temperature influences positive affect and leads to higher perceived valuation. However, this indirect effect should only occur among those with high levels of impulsivity.
Findings
Findings demonstrate participants viewing high-temperature cues (M= 110.96, SD=8.96) reported higher levels of price valuations than did those viewing low-temperature cues. In addition, a significant interaction between temperature and impulsivity was
observed. Specifically, there were positive effects of temperature on price valuations at moderate and high levels of impulsivity. Similarly, moderated mediation analysis examined the indirect effect of temperature (high vs. low) on choice price, via positive affect, and moderated by impulsivity. Results revealed the indirect effect was significant at moderate (3.82) and high levels of impulsivity (5.82).
Originality and contribution of this paper
The findings of this current research provide three important implications, theoretically and practically. First, this research contributes to the literature on weather and anchoring effects by testing a novel perspective that demonstrates how simple visual (temperature) cues, rather than ambient weather and temperature, can lead to anchoring effects. Second, the findings of this research identify theoretically grounded moderator (impulsivity) and mediator (positive affect) variables within the research context. This is significant because there is little understanding on how psychological traits and individual differences can influence anchoring effects (Furnham &Boo, 2011). Moreover, most studies which examine the underlying mechanism of anchoring effects have focused on cognitive factors, including anchoring-and-adjustment (Tversky & Kahneman, 1974), selective accessibility (Chapman & Johnson, 1999), and attitude change (Blankenship, Wegener, Petty, Detweiler-Bedell, & Macy,2008). Thus, the current study contributes to the literature on anchoring effects by identifying the impact of psychological traits (impulsivity) and examining the underlying process from an affective perspective (positive affect). Third, the findings of this research are beneficial to marketers by highlighting the importance of simple, environmental cues to increase positive consumer evaluations.
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