Effects of Participative Pricing on Consumers’ Cognitions and Actions: A Goal Theoretic Perspective

Using a goal theoretic approach we examine how goal‐related mind‐sets influence consumers’ reactions to participative pricing mechanisms (where consumers participate in price determination; e.g., auctions) relative to economically equivalent, fixed price offers. We show that the congruence between individuals’ notions of high‐perceived control over shopping situations and participative price environments produces an implementation‐oriented mind‐set that influences cognitions and intentions. In the absence of such congruence, we can independently create implemental mind‐sets that replace the natural deliberative thinking of consumers contemplating a purchase. Demonstrating the subtle yet powerful role mind‐sets play in dictating thought and action is a unique contribution of this research.