Psychological effects of the Euro—experimental research on the perception of salaries and price estimations

Jonas, Eva; Greitemeyer, Tobias; Frey, Dieter; Schulz‐Hardt, Stefan

doi:10.1002/ejsp.112

Cited by 53 publications

(59 citation statements)

References 39 publications

(50 reference statements)

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“…However, the illusion was weaker or absent when low-priced essential goods or services were rated or when a negative mood was induced. Other experimental studies have reported related findings, for example, when evaluative judgements were expressed as price estimates (Jonas, Greitemeyer, Frey, & Schulz-Hardt, 2002), or as willingness to pay judgements (Raghubir & Srivastava, 2002), or as importance ratings for gains and losses (Tyszka & Przybyszewski, 2003).…”

Section: Attitudes and Feelingsmentioning

confidence: 85%

A qualitative study of adaptation to the euro in the Republic of Ireland: I. attitudes, the ‘euro illusion’ and the perception of prices

Ranyard

Burgoyne

Saldanha

et al. 2005

Community & Applied Soc Psy

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This is the first of two reports of a study using semi-structured, in-depth interviews to explore the current and recollected experiences of Irish people for the period before, during, and after the introduction of euro notes and coins (1 January 2002). Twenty-four adults, 12 males and 12 females, covering a range of ages and educational attainment, were interviewed between October 2002 and February 2003. We found that most had welcomed the new currency initially, though some had felt less positive about it, whilst current experiences were more mixed. People's explanations for their attitudes seemed to focus more on the economic and practical aspects of currency change rather than symbolic meanings. Initially, most had experienced a euro illusion (prices in euros seeming to be more expensive than in punts). However, for most, the strength of the illusion appeared to diminish quite quickly. Nonetheless, current prices were believed to be higher, and many respondents attributed this either directly or indirectly to the change of currency. Although independent evidence found that there had been price increases in certain sectors, it was concluded that perceived price rises were, in part, illusory, and driven by expectations and selective price monitoring.

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Section: Attitudes and Feelingsmentioning

confidence: 85%

A qualitative study of adaptation to the euro in the Republic of Ireland: I. attitudes, the ‘euro illusion’ and the perception of prices

Ranyard

Burgoyne

Saldanha

et al. 2005

Community & Applied Soc Psy

View full text Add to dashboard Cite

show abstract

“…For instance, slicing up a pizza into several pieces affects the estimated food quantity when the pieces are removed from the plate and displayed horizontally but not when they are left on the plate so that they still form the pizza (Pelham et al,study 1). Similarly, the (reverse) face-value effect seems limited to situations in which consumers are unfamiliar with the unit of measure (Jonas et al 2002;Raghubir and Srivastava 2002). To the extent that a consumer becomes familiar with a foreign currency, this difference disappears (Marques and Dehaene 2004).…”

Section: Further Research and Implicationsmentioning

confidence: 99%

How to Make a 29% Increase Look Bigger: The Unit Effect in Option Comparisons

Pandelaere¹,

Briers²,

Lembregts³

2011

Journal of Consumer Research

118

141

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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Quantitative information can appear in different units (e.g., 7-year warranty p 84-month warranty). This article demonstrates that attribute differences appear larger on scales with a higher number of units; expressing quality information on such an expanded scale makes consumers switch to a higher-quality option. Testifying to its practical importance, expressing the energy content of snacks in kilojoules rather than kilocalories increases the choice of a healthy snack. The unit effect occurs because consumers focus on the number rather than the type of units in which information is expressed (numerosity effect). Therefore, reminding consumers of alternative units in which information can be expressed eliminates the unit effect. Finally, the unit effect moderates relative thinking: consumers are more sensitive to relative attribute differences when the attribute is expressed on expanded scales. The relation with anchoring and implications for temporal discounting and loyalty programs are discussed. The University of Chicago Press

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“…Participants in the immoral condition thought they could purchase fewer items than participants in the neutral condition. Their study demonstrates that perceptions of money's value depend on a situational factor that is logically unrelated to how much money can actually buy (see also Dubois, Rucker, and Galinsky 2012;Jonas, Greitemeyer, Frey, and Schulz-Hardt 2002;Lasaleta, Sedikides, and Vohs 2014;Wertenbroch, Soman, and Chattopadhyay 2007). Going beyond this past work, we examine whether perceptions of money's value depend on to whom the money belongs.…”

mentioning

confidence: 96%

Other People’s Money: Money’s Perceived Purchasing Power Is Smaller for Others Than for the Self

Polman

Effron

Thomas

2017

Journal of Consumer Research

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Nine studies find that people believe their money has greater purchasing power than the same quantity of others' money. Using a variety of products from socks to clocks to chocolates, we found that participants thought the same amount of money could buy more when it belonged to themselves versus others -a pattern that extended to undesirable products. Participants also believed their money -in the form of donations, taxes, fines, and fees -would help charities/governments more than others' money. We tested six mechanisms based on psychological distance, the endowment effect, wishful thinking, better-than-average biases, painof-payment, and beliefs about product preferences. Only a psychological distance mechanism received support. Specifically, we found that the perceived purchasing power of other people's money decreased logarithmically as others' psychological distance from the self increased, consistent with psychological distance's subadditive property. Further supporting a psychological distance mechanism, we found that framing one's own money as distant (vs. near) reduced the self-other difference in perceived purchasing power. Our results suggest that beliefs about the value of money depend on who owns it, and we discuss implications for marketing, management, psychology, and economics.

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Psychological effects of the Euro—experimental research on the perception of salaries and price estimations

Abstract: In five studies we show that

Cited by 53 publications

References 39 publications

A qualitative study of adaptation to the euro in the Republic of Ireland: I. attitudes, the ‘euro illusion’ and the perception of prices

A qualitative study of adaptation to the euro in the Republic of Ireland: I. attitudes, the ‘euro illusion’ and the perception of prices

How to Make a 29% Increase Look Bigger: The Unit Effect in Option Comparisons

Other People’s Money: Money’s Perceived Purchasing Power Is Smaller for Others Than for the Self

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