Cost Conscious? The Neural and Behavioral Impact of Price Primacy on Decision-Making

Abstract

Price is a key factor in most purchases, but it can be presented at different stages of decision making prior to a purchase. We examine the sequence-dependent effects of price and product information on the decision-making process at both neural and behavioral levels. During functional magnetic resonance imaging, the price of a product was shown to participants either before or after the product itself was presented. Early exposure to price, or price primacy, altered the process of valuation, as seen via altered patterns of activity in medial prefrontal cortex immediately prior to purchase decisions. Specifically, whereas viewing products first resulted in evaluations strongly related to products' attractiveness or desirability, viewing prices first appeared to promote overall evaluations related to products' monetary worth. Consistent with this framework, we show that price primacy can increase purchase of bargain priced products when their worth is easily recognized. Together, these results suggest that price primacy highlights considerations of product worth and can thereby influence purchasing.