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The processing of price comparison is not holistic but componential
Pedro Macizo1, Fernando Ojedo2
1Departamento de Psicología Experimental, Facultad de Psicología, Mind, Brain and Behavior Research Center (CIMCYC, Spain), Universidad de Granada, Campus de Cartuja, s/n, 18071, Granada, Spain. pmacizo@ugr.es.
Psychological Research
|June 26, 2017
Summary
Price perception is not holistic, but componential. Cognitive processing of prices involves compatibility between numerical digits and monetary units (euros and cents), influencing decision-making speed.
Area of Science:
- Cognitive Psychology
- Behavioral Economics
- Decision Science
Background:
- The cognitive processing of numerical information, particularly prices, is debated between holistic and componential models.
- Understanding how individuals evaluate and compare prices is crucial for marketing and economic decision-making.
Purpose of the Study:
- To investigate whether the cognitive processing of prices is holistic or componential.
- To examine the influence of numerical digits and monetary units on price comparison.
Main Methods:
- Three experiments were conducted involving participants comparing two prices.
- Analysis focused on distance effects, compatibility effects between digits and monetary categories (euro/cent), and presentation order (simultaneous/sequential).
Main Results:
- Initial findings suggested holistic price processing due to distance effects.
- However, these effects were explained by compatibility between numerical values and monetary units (euro/cent).
- Compatible price comparisons (e.g., 8 euro vs. 4 cent) were processed faster than incompatible ones, indicating componential processing.
Conclusions:
- Price processing is not holistic but componential, influenced by the interaction between numerical digits and monetary categories.
- Compatibility effects between digits and monetary units significantly impact the speed of price comparisons.
- The ratio of intra- vs. inter-monetary category comparisons further modulates these compatibility effects.
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