People

Price reductions take either an integrated form (e.g., a discount shown directly on the price tag) or a non-integrated form (e.g., a discount contained in a coupon sent to consumers and thus separate from the price tag). This research examines how non-integrated versus integrated promotions influence choices among vertically differentiated products. Under an integrated promotion (e.g., $10 off) applicable to multiple products (e.g., original list prices: $50 vs. $30), consumers directly compare these products’ post-promotion final prices displayed on their price tags (after a reduction of $10: $40 vs. $20). In contrast, under a non-integrated promotion of the same monetary value, consumers simply compare these products’ original list prices ($50 vs. $30) and neglect their post-promotion final prices, which require calculations. The list prices ($50 vs. $30; relative to the final prices: $40 vs. $20) as a basis for price comparison reduce the perceived price difference between these products. Consequently, a non-integrated promotion (compared to an integrated promotion) increases consumers’ choice of higher-priced products. A series of experiments (N = 5,187) demonstrate this effect and support the final price neglect mechanism. Furthermore, although attenuated, this effect still emerges for price reductions of a smaller magnitude or in a percent-off format.

Websites commonly use visual formats to display numerical product ratings. Highlighting the overlooked notion of the “aesthetics” of product ratings, the current research examines how the shape of basic visual rating units (rectangular vs. non-rectangular) influences product preference. Seven experiments (and 23 supplementary experiments; N = 17,994) demonstrate a visual rounding effect. Specifically, compared to the rectangular rating format (e.g., bar ratings), the non-rectangular rating format (e.g., star ratings) increases product preference when product ratings (e.g., 3.7, 3.8, 3.9) are below the nearest integer. In contrast, the non-rectangular rating format decreases product preference when product ratings (e.g., 4.1, 4.2, 4.3) are above the nearest integer. Occurring for both the overall rating and by-attribute ratings of a product, the visual rounding effect results from a visual completeness restoration process, wherein consumers perceive non-rectangular rating units to be incomplete after vertical cutting. This research contributes to the product rating and visual marketing literatures and provides actionable implications by demonstrating what visual rating format should be adopted based on rating distribution, how the visual rounding effect can be prevented if needed, and who are even more susceptible to the visual rounding effect.