Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.


 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference
 EMAC 2021 Regional Conference
 EMAC 2022 Annual
 EMAC 2022 Regional Conference
 EMAC 2023 Annual
 EMAC 2023 Regional Conference
 EMAC 2024 Annual
 EMAC 2024 Regional Conference

EMAC 2019 Annual Conference


Incidental influence of new purchase price on perception of trade-in offer
(A2019-8987)

Published: May 28, 2019

AUTHORS

Tom Kim, NEOMA Business School; Joydeep Srivastava, Temple University

KEYWORDS

trade-in; category; pricing

ABSTRACT

Consumers often engage in purchase and replacement decisions involving trade-in of their old product. When trade in a used product, rational consumers should evaluate a trade-in offer based on original price of the old product and depreciation in value of the product. Our studies show that price for a new purchase, which is not related to value of the old product, influences consumers’ perception of a trade-in offer, and the perception influences evaluation of overall transactions when consumers trade in a used product and purchase a new product in the same category. More importantly, because category structure is flexible, the influence of price for a new purchase on perception of a trade-in offer depends on individual differences in category structure or firms’ representation of product categories.