Christopher Chengshi

Abstract:

Internal reference prices can be affected by a wide variety of different factors. One such factor that had gone un-researched in prior literature was the distance from the consumer to the store they choose to shop at. This study seeks to determine what association, if any, exists between distance and internal reference prices. By using a survey of adult participants who are the main grocery shoppers of their household, this study finds that the significance of the association between distance and internal reference prices is negligible. In the process of doing so, the pre-existing assertion from prior literature that internal reference prices are made of so many factors that isolating the effect of one is nearly impossible is confirmed. Additionally, the study confirms the assertion that internal reference prices are a distinct metric from price expectations, and that all future research done on internal reference prices should make this distinction clear.