Embargoed and Restricted Access
Reason: Under embargo until 31 July 2023. After this date a copy can be supplied under Section 51(2) of the Australian Copyright Act 1968 by submitting a document delivery request through your library.
The Effects of Lower Price Restraints on Consumer Choice
Lower price restraints are floor prices below which consumers, based on their general knowledge about the product, believe the product will lack acceptable quality. The current research investigates the downstream consequences of lower price restraints on consumer choice. Across five studies, it is found that lower price restraints increase the choice share of the cheapest alternative above the restraint. It is further shown that thinking of a lower price restraint shifts the consumer’s attention from quality to cost through a categorisation process.