Journal ArticleDOI
Nocebo effects from negative product information: when information hurts, paying money could heal
Sumitava Mukherjee,Arvind Sahay +1 more
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TLDR
In this paper, the authors found that negative information about a product can give rise to negative perceptions even in inert situations (nocebo effects), and to understand how price levels impact such judgments.Abstract:
Purpose
This research aimed to find whether information about a product can give rise to negative perceptions even in inert situations (nocebo effects), and to understand how price levels impact such judgments.
Design/methodology/approach
In all experiments, participants were exposed to negative product information in the form of potential side-effects. In an initial study, a higher non-discounted versus a discounted price frame was presented for a health drink after customers were exposed to negative aspects. Then, in experiment 1, price (high vs low) and exposure to information (no information vs negative information) was manipulated for skin creams where participants physically evaluated the cream. In experiment 2, price was manipulated at three levels (low, high, discounted) orthogonally with product information (no negative information vs with negative information) to get a more nuanced understanding.
Findings
In the initial study, after exposure to negative information, the non-discounted group had more positive ratings for the drink. Study 1 showed that reading about negative information resulted in a nocebo effect on perception of dryness (side-effect). Moreover, when no information was presented, perception of dryness by low and high price groups were similar but in the face of negative information, perception of dryness by low-price group was more pronounced compared to a high-price group. Study 2 conceptually replicated the effect and also confirmed that not only discounts (commonly linked with product quality), but absolute price levels also show a similar effect.
Practical implications
Nocebo effects have been rarely documented in consumer research. This research showed how simply reading generically about potential side effects gives rise to nocebo effects. In addition, even though marketers might find it tempting to lower prices when there is negative information about certain product categories, such an action could backfire.
Originality/value
To the best of our knowledge, the link between observable nocebo effects and its link with pricing actions is a novel research thread. We were able to show a nocebo effect on product perception after reading about negative information and also find that a higher price can mitigate the nocebo effect to some extent.read more
Citations
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Journal ArticleDOI
The Halo Effect of CSR Activity: Types of CSR Activity and Negative Information Effects
Chang-Hyun Jin,Jung-Yong Lee +1 more
TL;DR: In this paper, the role of the polarity of information or publicity about a company (whether positive, negative, or neutral) and two CSR activities (e.g., environmental preservation and supporting social welfare in developing countries) in the relationships between consumers and brands and also to investigate how a corporate image affects the formation of an image of a company or brand through the halo effect of Corporate Social Responsibility (CSR) activity.
Journal ArticleDOI
Influencing side-effects to medicinal treatments: A systematic review of brief psychological interventions
TL;DR: Brief psychological interventions can influence side-effect reporting to active medications and the strongest and most consistent effect came from omitting side- effect information, although surprisingly de-emphasizing side-effects did not affect side-Effect reporting.
Journal ArticleDOI
The Nocebo Effect: A Review of Contemporary Experimental Research
TL;DR: In this article, a systematic review of contemporary studies exploring the nocebo effect focuses on the mechanisms underlying the placebo effect, the characteristics of participants exhibiting a more intensive placebo response, and the circumstances that might reduce or prevent the effect.
References
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Journal ArticleDOI
Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence:
TL;DR: In this paper, evidence from past research and insights from an exploratory investigation are combined in a conceptual model that defines and relates price, perceived quality, and perceived value for a product.
Journal ArticleDOI
Placebo-induced changes in FMRI in the anticipation and experience of pain.
Tor D. Wager,James K. Rilling,Edward E. Smith,Alex Sokolik,Kenneth L. Casey,Richard J. Davidson,Stephen M. Kosslyn,Robert M. Rose,Jonathan D. Cohen +8 more
TL;DR: fMRI experiments found that placebo analgesia was related to decreased brain activity in pain-sensitive brain regions, including the thalamus, insula, and anterior cingulate cortex, and was associated with increased activity during anticipation of pain in the prefrontal cortex, providing evidence that placebos alter the experience of pain.
Book
Pricing: Making Profitable Decisions
TL;DR: This book discusses pricing strategy in the context of a multi-modal marketplace, where pricing decisions are made based on a number of factors, including the value of the product, the customer, and the competitive environment.
Journal ArticleDOI
The effect of price, brand name, and store name on buyers' perceptions of product quality: An integrative review.
Akshay R. Rao,Kent B. Monroe +1 more
TL;DR: This article integrated previous research that has investigated experimentally the influence of price, brand name, and/or store name on buyers' evaluations of product quality, and proposed a meta-analysis to evaluate the influence.
Journal ArticleDOI
The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations
Akshay R. Rao,Kent B. Monroe +1 more
TL;DR: In this paper, the authors examined the dissimilar use of product information cues in product evaluations by differentially familiar subjects and found that low-familiar and highly familiar subjects tend to perceive a stronger price-quality relationship than do moderately familiar subjects.
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