Priya Raghubir

Priya Raghubir
New York University | NYU · Department of Marketing

PhD

About

82
Publications
101,325
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5,371
Citations
Additional affiliations
July 1997 - June 2008
University of California, Berkeley
Position
  • Professor (Full)

Publications

Publications (82)
Article
Traditional practice prominently presents offers (e.g., “50% Off”) followed by a quantity (“When you buy two”), duration (“Today only”), or other conditional restriction as a scarcity appeal to increase urgency. Placing a hurdle to clear before purchase eligibility presents the good news of the offer followed by the bad news of the restriction. We...
Article
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The digitization of money has led to the emergence of numerous virtual currencies. Despite their great financial relevance, virtual currencies have not received much attention in marketing research. We classify virtual currencies into three different schemes and highlight potential factors that influence consumer behavior related to these new payme...
Preprint
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Modern and gig economy businesses collect voluntary contributions (i.e., tips) from consumers via screen-based payment systems (i.e., $1, $2, $3; 10%, 15%, 20%). The use of these systems has been criticized by the popular media for forcing consumers to leave large tips in contexts where they previously would have left small tips or where tips were...
Article
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With the revolution in technology, the internet offers opportunity to be a "web wizard," but its overuse could be problematic. Problematic internet use, also called internet addiction disorder (IAD), is typically self-diagnosed and has been linked to other comorbidities, such as gambling, alcoholism, and mood disorders. Psychiatrists have not reach...
Article
January 1, 2018: The new Editorial team starts accepting new manuscripts at the Journal of Consumer Psychology. The Editor‐in‐Chief, Anirban Mukhopadhyay, has two previous years of experience.
Article
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Men typically predict women’s sexual intentions to be higher than women say they are (Haselton & Buss, 2000). It is debated whether this cross-sex bias is because of men overestimating women’s intentions (Murray et al., 2017), women underreporting their own intentions (Perilloux & Kurzban, 2015, 2017), or both. To unify the current debate, we decom...
Article
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The denomination effect (Raghubir and Srivastava 2009) suggests that individuals are less likely to spend when money is in the form of a single large denomination (e.g., a $10 bill) relative to many smaller denominations (e.g., ten $1 bills). We explore the idea that consumers are reluctant to break large bills because smaller denominations are les...
Chapter
This article applies the heuristic-systematic dual-process model (HSM) for researching how source credibility and visualization can influence the way consumers comprehend advertising messages and evaluate advertised product. Findings of Study 1 reveal that consumers rely on source credibility in heuristic processing to comprehend a product’s attrib...
Article
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We propose that the horizontal and vertical position of an item on a display is a source of information that individuals use to make judgments. Six experiments using 1 × 5 or 5 × 5 displays show that consumers judge that products placed at the bottom (vs. top) and on the left-hand (vs. middle and right-hand) side of a display are less expensive and...
Chapter
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The authors present an overview of academic research on risk assessment. Consumers assess risk as though they were intuitive statisticians, combining two distinct processes to arrive at their perceptions of risk. With the bottom-up process, consumers rely on specific, individual-level risk factors. With the top-down process, consumers rely on the o...
Article
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This paper introduces the price knowledge paradox: an effect where consumers have lower confidence in their price memory for unfamiliar (versus familiar) prices, but, in fact, have better recall of unfamiliar (versus familiar) prices. We propose that this effect is due to unfamiliar price formats being processed more intentionally, leading to their...
Article
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A series of studies identifies that consumers hold beliefs about how retailers organize product displays in stores. These beliefs do not reflect reality, but consumers pervasively use them even when discredited. Study 1 finds that consumers believe popular products are placed on middle shelves, expensive products on top shelves and promoted product...
Article
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This paper examines the impact of sociodemographic variables (age, income, and occupation) on price memory. We argue that these variables may exert opposing effects on ability and motivation to process price information, explaining why prior literature has found inconclusive effects of sociodemographics on price knowledge. To tease apart the influe...
Article
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Corporate sustainability can be broadly defined as the pursuit of a business growth strategy by allocating financial or in-kind resources of the corporation to a social or environmental initiative. Today, more than ever, corporate sustainability has risen to the status of strategic business matter and demands supervision from the top. However, desp...
Article
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This paper examines how tourists convert foreign currencies to make spending decisions. Six studies demonstrate how sequential (Study 1) and simultaneous (Study 2) exposure to nominally different (but economically identical) prices, and the manner in which tourists perform currency conversions (Studies 3-5) influence price perceptions and purchase...
Article
This paper identifies a new bias in consumers' time perceptions — consumers perceive a journey from a destination to home to be faster than a trip from home to the same destination. In three experiments we demonstrate that this effect occurs both for short trips and for long trips to and from home. We also show that this effect occurs for other fam...
Article
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Two experiments examine the effect of the visual size of a gift in a free gift promotion on consumer judgments. Results show that promotional offers that highlight the free gift (rather than the product) are less effective than those that highlight the product to be purchased. Increasing the visual size of the free gift leads to perceptions of poor...
Article
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This article provides a framework that can be used to design a metrics system for organizations with multiple stakeholders and shows how it can be applied in the area of corporate social responsibility (CSR). The authors propose that the effort to identify, collect, and calibrate metrics is critical for the diffusion of CSR activities across corpor...
Article
This article examines how consumers process graphical financial information to estimate risk. We propose that consumers sample the local maxima and minima of a graph to infer the variation around a trend line, which is used to estimate risk. The local maxima and minima are more extreme the higher the run length of the stocks (the consecutive number...
Article
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This article develops an integrative framework for understanding gender-based group dynamics based on sex composition. The authors study decisions made by male and female members of a group to eliminate or promote other male and female group members. Study 1 uses game simulations modeled on the television show The Weakest Link to show how male and...
Article
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Article
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Labeled the "denomination effect," study 1 shows in three field studies that the likelihood of spending is lower when an equivalent sum of money is represented by a single large denomination (e.g., one $20 bill) relative to many smaller denominations (e.g., 20 $1 bills). In two of the three field studies, individuals spent more once the decision to...
Article
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This paper examines the existence and consequences of consumers' position-based beliefs about product layouts. We propose that consumers believe that options placed in the center of a simultaneously presented array are the most popular. This belief translates into their choosing options placed in the center more often than those on the sides of a d...
Article
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Retailers recognize that greater understanding of customers can enhance customer satisfaction and retail performance. This article seeks to enrich this understanding by providing an overview of existing consumer behavior literature and suggesting that specific elements of consumer behavior—goals, schema, information processing, memory, involvement,...
Article
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Abstract We propose,that the position of a product,on a shelf is a source,of information that consumers,use to infer price and quality. Results across five experiments,show,that consumers have shared,beliefs regarding,the prices of products based,on their vertical and horizontal shelf space,position. The Verticality inference captures,that higher p...
Article
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This paper examines how people process base rate information (r = n/N) to estimate risk. We propose that the more salient the denominator of a base rate (N) is, the more the information draws attention to the people on which it is based. Information concerning smaller populations or sample groups (N = 1000 vs. 100,000), as well as geographically pr...
Article
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This paper investigates the processes underlying consumers’ memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products...
Article
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This article examines consumer spending as a function of payment mode both when the modes differ in terms of payment coupling (association between purchase decision and actual parting of money) and physical form as well as when the modes differ only in terms of form. Study 1 demonstrates that consumers are willing to spend more when a credit card l...
Article
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This paper builds on recent research that shows that product experience is based on the interaction of a range of sensory cues whose effect is non-conscious (e.g., visual cues affect taste perception) to revisit the classic issue of product taste testing. We propose that as consumers are unaware of the influence of a range of stimuli on their judgm...
Article
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This paper studies mixed-gender group interactions in a strategic game where group members are sequentially eliminated till a single winner takes all. Study 1 tests the hypothesis that female contestants are retained till final rounds where they are eliminated. Using observational data from the US television show The Weakest Link (20 shows), result...
Article
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This article draws on current and classical psychological theories of consumer behavior to review current findings in the psychology and economics literature on the subjective value of money, using an information processing framework. Consumers subjectively value both prices and money. That is, consumers value an identical economic value as a price...
Article
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This chapter outlines recent developments in the consumer psychology literature examining people's health-related risk perceptions. We first define risk, and discuss the importance of studying risk perceptions in the health domain. We integrate extant models proposed in social and health psychology and build a theoretical model for examining risk p...
Article
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Consumers' reactions to rectangles have implications for package and product design. In two lab studies and an analysis of field data, the authors find that the ratio of the sides of a rectangular product or package can influence purchase intentions and preferences and is related to marketplace demand. In more exploratory inquiries, the authors als...
Article
Consumers’ reactions to rectangles have implications for package and product design. In two lab studies and an analysis of field data, the authors find that the ratio of the sides of a rectangular product or package can influence purchase intentions and preferences and is related to marketplace demand. In more exploratory inquiries, the authors als...
Article
Quatre études multi-méthodes montrent que plus l'emballage est allongé, moindre en est la quantité achetée. La première étude, réalisée en laboratoire, révèle que les bouteilles de bière sont perçues comme contenant plus de produit que les canettes. Ce résultat est particulièrement vrai pour les faibles consommateurs de bière. Dans la deuxième étud...
Article
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This paper examines centrality of physical position as a cue that leads to systematic biases in people’s decisions to retain or eliminate a participant from a group. Termed the “center-stage” effect, we argue that people use their belief that “important people sit in the middle” as a schematic cue that they substitute for individuating performance...
Article
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Four multi-method studies show that the more elongated a container, the lower its purchase quantity. Study 1, in the lab, shows beer bottles are perceived to contain more than beer cans, particularly for infrequent beer drinkers. Study 2 analyzes scanner data to show that the purchase quantity of cans is 63.66 percent higher than the purchase quant...
Article
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A self-diagnosis inventory is both a response instrument and a tool for an individual to assess his or her risk. Three experiments show that the manner in which a depression self-diagnosis inventory is administered and constructed affects the manner in which a respondent interprets behavioral symptoms. This in turn affects (a) self-reports of wheth...
Article
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In two experiments, we examined when and why ease of retrieval of information from memory affects behavioral frequency and attitudinal judgments. Overall, the results suggest that when the subjective experience of ease of retrieval is consistent with the expected ease of retrieval, the content of the information retrieved is used to make judgments....
Article
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Purpose – The underlying thesis of this paper is that consumers will infer that the costs of production of a product that is offered free are low, and this will reduce the price they are willing to pay for the product when it is a stand-alone offering. Design/methodology/approach – Two laboratory experiments examine how consumers respond to product...
Article
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Two studies (n = 497) examine gender differences in "unrealistic optimism" in beliefs of marriage using a Taiwanese population. Unrealistic optimism is defined as the beliefs that positive (negative) events are more (less) likely to happen to one's self versus others. Although the bias is robust, it has been shown to be lower among people with an i...
Article
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Two experiments examine the process by which free gift promotions serve as a source of information about the underlying value of the product offered as a free gift. The value-discounting hypothesis argues that by virtue of being offered as a free gift, products will be valued less as evinced by lower purchase intentions and a lower price that consu...
Article
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The article discusses the utilitarian benefits of consumer or "pull" promotions, the Chandon, Wansink and Laurent (CWL) model, as well as affective benefits and informative effects of sales promotions. The economic value, informational content, and affective appeal routes are interactive and influence the effectiveness of sales promotions. Understa...
Article
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A coupon is a commonly used sales promotion device offering the user a discount on the purchase of a product. Consumer coupon offerings are also becoming increasingly diverse: from “% off” and “$ off” to “Buy one, Get one free” (BOGO) offers and co-promotions (Buy X, Deal on Y). This paper reports the results of three experiments that examine wheth...
Article
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This paper studies the underlying reason behind the self- positivity bias. As events perceived to be controllable implicate self-esteem more so than less controllable ones, they are more prone to self-positivity effects. On the other hand, as less controllable events do not implicate self-esteem, only when the order-of- elicitation cues comparative...
Article
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It is known that iterative procedures are always needed when the capacity spectrum methods based on the equivalent linear systems are employed to estimate the maximum deformation of existing structures. In addition to inefficiency, it has been shown that the existing method sometimes leads to the lack of convergence and accuracy. Besides, the probl...
Article
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This paper studies the presence, resilience and direction of the self-positivity bias under various conditions to examine the role of self-esteem maintenance as an important antecedent for the bias. Experiment 1 manipulates the perceptions of the uncontrollability of cancer and presence of base-rate information as independent variables that togethe...
Article
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The ease-of-retrieval hypothesis suggests that people use the ease with which information comes to mind as a heuristic in forming judgments (Schwarz et al. 1991). We examine the automaticity of the use of ease-of-retrieval as an input in judgments. We demonstrate that the ease-of-retrieval is used unintentionally, outside of awareness, and effortle...
Article
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This article develops a conceptual framework to examine how consumers incorporate mem- ory-based and context-based cues in estimating past and future credit card expenses. Focusing on memory-based information, in this framework we suggest that past credit card expenses may be recalled as holistic totals or episodic individual expenses depending on...
Article
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This article examines systematic differences in people's spending behavior when using foreign currencies. Rather than overspend or underspend in general, we show that individuals' valuation of a product in an unfamiliar foreign currency is biased toward its nominal value--its face value--with inadequate adjustment for the exchange rate. This leads...
Article
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While consumer choice research has dedicated considerable research attention to aspects of choice that are deliberative and conscious, only limited attention has been paid to aspects of choice that occur outside of conscious awareness. We review relevant research that suggests that consumer choice is a mix of conscious and nonconscious influences,...
Article
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Many product categories, from pizzas to real estate, present buyers with purchase decisions involving complex area judgments. Does a square look larger or smaller than a circle? How much smaller does a circle of 8-inch diameter look when compared to one with a 10-inch diameter? In this paper, we propose a psychophysical model of how consumers make...
Article
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This paper examines a boundary condition of the ease-of-retrieval effect shown to affect risk perceptions of AIDS (Raghubir and Menon 1998; R&M). R&M had shown that when AIDS-related behaviors were difficult (vs. easy) to recall, people reduced their estimates of contracting AIDS, based on an inference that the more difficult an item was to recall,...
Article
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On July 1, 1997, Hong Kong ceased to be a British colony and became the first Special Administrative Region of the People's Republic of China (PRC). We report the results of three field experiments conducted in Hong Kong, Macau, and Taiwan (N 1,250) from June to August 1997 that examine attitudes toward the impact of Hong Kong's transition as a fun...
Article
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We argue that finance theorists and practitioners need to examine the reasons behind a seeming anomaly. The behavioral anomalies in the finance literature can be classified as price and return effects, volume and volatility effects, time-series patterns, and miscellaneous effects. For each category, the empirical literature offers a multitude of ex...
Article
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Given the number of volume judgments made by consumers, for example, deciding which package is larger and by how much, it is surprising that little research pertaining to volume perceptions has been done in marketing. In this article, the authors examine the interplay of expectations based on perceptual inputs versus experiences based on sensory in...
Article
Given the number of volume judgments made by consumers, for example, deciding which package is larger and by how much, it is surprising that little research pertaining to volume perceptions has been done in marketing. In this article, the authors examine the interplay of expectations based on perceptual inputs versus experiences based on sensory in...
Article
Full-text available
The authors investigate the conditions in which price promotions affect pretrial brand evaluations. A price promotion is theorized to be informative about brand quality when it stands out because it deviates from either its own past behavior or industry norms. Product category experts, who have alternative sources of information to make quality jud...
Article
The authors investigate the conditions in which price promotions affect pretrial brand evaluations. A price promotion is theorized to be informative about brand quality when it stands out because it deviates from either its own past behavior or industry norms. Product category experts, who have alternative sources of information to make quality jud...
Article
Full-text available
In this article, the author proposes that consumers use the value of a coupon to estimate price. Study 1 shows that the higher the percentage discount, the higher the perceived price; Study 2 demonstrates this effect with cents-off coupons. Study 3 then demonstrates that the effect is contingent on whether alternate sources of information are avail...
Article
In this article, the author proposes that consumers use the value of a coupon to estimate price. Study 1 shows that the higher the percentage discount, the higher the perceived price; Study 2 demonstrates this effect with cents-off coupons. Study 3 then demonstrates that the effect is contingent on whether alternate sources of information are avail...
Article
Full-text available
The HIV virus is now an international killer, but individuals perceive that they are less likely to contract the virus than are others (the self-positivity bias). Three studies investigate the antecedents and consequences of the self-positivity bias in judgments of the risk of contracting AIDS. We show that the perceived similarity of another perso...
Article
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Respondents in marketing surveys are often asked to estimate future expenses on products and services to assist marketers in arriving at market-share forecasts. To estimate future expenses for products and services, respondents may use information about past expenses, information about past behavioral frequencies for a related behavior, or both, if...
Article
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Estimates the number of objects in a line are made in many different situations. This paper demonstrates that besides the actual number of dots, aspects of line configuration affect the perceived numerosity of dotted lines. Experiment 1 provides evidence that the highly studied "clutter effect" in distance perception research replicates to the nume...
Article
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We propose that consumers use the presence of a restriction (i.e., purchase limit, purchase precondition, or time limit) as a source of information to evaluate a deal. In a series of four studies we present evidence suggesting that restrictions serve to accentuate deal value and act as ''promoters'' of promotions. We begin by using aggregate level...
Article
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Respondents typically underreport socially undesirable behaviors and overreport socially desirable behaviors because of a social desirability bias. This not only leads to biased data, but also has important implications for health-care marketers interested in encouraging people to perform in more socially desirable ways. This article investigates t...
Article
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Consumers make distance judgments when they decide which store to visit or which route to take. However, these judgments may be prone to various spatial perception biases. While there is a rich literature on spatial perceptions in urban planning and environmental and cognitive psychology, there is little in the field of consumer behavior. In this a...
Article
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Marketing research surveys often elicit behavioral frequency reports. When estimating the number of times a respondent engages in a behavior, s/he may use information about the behavior stored in memory, information provided by the response context, or both. Based on an accessibility-diagnosticity framework, we theorize that the probability of usin...
Article
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This paper has three main parts. We first present a brief survey of the behavioral anomalies in the finance literature classified as: price and return effects, volume and volatility effects, time series patterns and other miscellaneous effects. For each category, we find that the empirical literature offers a multitude of explanations. We then deve...
Article
Full-text available
Sales promotions targeted at consumers (e.g., coupons, sweepstakes, free offers, etc.) form a large and growing part of the marketing budget worldwide. The key managerial questions regarding sales promotions today are: a) Are they increasing profits to their maximum potential? b) Are they as profitable as they might be? c) Can this be achieved thro...

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