Up, up and away! The metaphor of verticality and the moderating role of regulatory focus in price assessments

Abstract

Purpose – The purpose of this study is to analyze the effects of the metaphor of verticality on how individuals assess prices, having regulatory focus as a moderator of this relationship. Design/methodology/approach – Two experiments were conducted with a 2 × 2 between-subjects design (metaphor of verticality: physically higher vs physically lower × regulatory focus: promotion vs prevention). The second study performed moderated mediation by incorporating the self-esteem variable. Findings – The results show that the treatment group consisting of prevention-focused individuals who consider themselves physically higher assessed prices according to what was proposed for the study compared to the group consisting of promotion-focused individuals who consider themselves physically lower. Participants in Treatment Group 1 attributed the lowest prices to products, demanded more significant discounts to go to another store searching for a product and considered the prices more unfair. Originality/value – The primary contribution of this study is to reveal that the position of one's body on the vertical axis influences their thoughts and, therefore, their decision-making in the scope of products and services prices. Moreover, regulatory focus can attenuate such effects.

Keywords

• Metaphor of verticality
• Regulatory focus
• Pricing decisions