Numerical Cognition and Pricing
In this talk I will begin with an overview of my research on numerical cognition and pricing, and then present my latest work (co-authored with Arnaud Monnier) on how quantity perception affects perceived economic value and market prices. To assess the economic value of a grocery product, consumers have to first evaluate its quantity. Quantity evaluations can be based on either perceptual judgment or analytical judgment of numeric information. When quantity is described using a perceptual unit (e.g., 12 snack bags of chips), it prompts a perceptual judgment of quantity, which usually increases perceived value. In contrast, when quantity is described using a standardized unit (e.g., 12 oz. of chips), it prompts an analytical judgment of quantity, which reduces perceived value. I will review several empirical studies demonstrating how increasing the salience of perceptual units increases perceived economic value and market prices.