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The processing of prices across numerical formats.

Fernando Ojedo1, Pedro Macizo1

  • 1University of Granada, Spain; Mind, Brain and Behaviour Research Center (CIMCYC), Spain.

Acta Psychologica
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Summary

Price presentation format impacts magnitude processing. Number-Monetary Category (NMC) compatibility affected processing across all formats, unlike Unit-Decade (UD) compatibility.

Keywords:
Compatibility effectComponential processingPrice processing

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Area of Science:

  • Cognitive Psychology
  • Neuroscience
  • Economics

Background:

  • Understanding how numerical magnitude is processed is crucial for various fields.
  • The format of numerical information, such as digits or words, may influence cognitive processing.
  • Previous research has explored magnitude processing, but the impact of specific price presentation formats requires further investigation.

Purpose of the Study:

  • To investigate whether the format of price presentation influences the processing of numerical magnitude.
  • To examine the effects of Number-Monetary Category (NMC) and Unit-Decade (UD) compatibility on price magnitude processing across different formats.

Main Methods:

  • A price comparison task was employed using two-digit prices.
  • Prices were presented in three formats: Arabic digits, written number words, and auditory number words.
  • Stimuli included NMC compatible/incompatible and UD compatible/incompatible prices in euro currency.

Main Results:

  • Number-Monetary Category (NMC) compatibility effects were observed across all tested numerical formats (Arabic digits, written words, auditory words).
  • Unit-Decade (UD) compatibility effects were not found in any of the numerical formats.
  • These findings suggest that the relationship between numerical value and monetary unit significantly influences magnitude perception, irrespective of format.

Conclusions:

  • The format of price presentation influences magnitude processing, particularly concerning the relationship between numerical value and monetary category.
  • The hybrid model of multisymbolic magnitude processing provides a framework for understanding these effects.
  • Future research should explore the underlying neural mechanisms and practical implications of these findings in consumer behavior and financial decision-making.