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When is an internal reference price selected for price judgements? This paper analyses how the combination of price and product attributes during the learning phase of internal reference prices influences reference price utilisation. We apply an experimental approach that accounts for two mechanisms of reference price learning. In two experiments, we vary the relationship between price and product attribute value. The results show that the internal reference price is only utilised in price judgements when a consistent relationship between previously observed prices and attribute values exists in the learning phase. This paper provides a unique approach to study reference price learning, which contributes to research by offering insight into the utilisation of reference prices. Results enable managers to strategically influence reference price learning and utilisation.

Influencing reference price utilisation through the learning environment