EFFECTS OF NOMINAL REPRESENTATION ON VALUE OF MONEY
Gamble, A., Garling, T., Marell, A. and Vastfjall, D., Goteborg University, Sweden
It has been shown that prices are evaluated differently whether nominally represented in a small or in a large money unit. In order to show that these results generalize to choices, two experiments were conducted with undergraduates as participants (ns=198 and 201). Experiment 1 demonstrated that participants chose a larger money unit (a smaller number) for paying the price of a product/service whereas they chose a smaller money unit (a larger number) for their salary. Furthermore, participants who were induced to feel positive and deactivated compared to those who were induced to feel negative and activated displayed a larger difference between the frequencies of choice of the larger money unit when paying the price and the smaller money unit when obtaining their salary. Participants who were induced to be positive and activated or negative and deactivated fell in between. In Experiment 2 choices of a more expensive product with accessories were more frequent when the prices were expressed in a larger money unit than when expressed in a smaller money unit. The effect was larger for cheap than for expensive products. Suggesting that normal mood variation may not be important, no effect was obtained of naturally occuring mood as measured by self-report ratings before and after choices.