The effect of base value neglect on consumer evaluations of cost‐justified price increases

Cost‐justified price increases are an important method for raising prices. However, little attention has been paid to how numeric framing affects their perceived fairness and thus purchase intentions. Building on research on price fairness and percentage processing, this article proposes that (i) a dual‐percentage frame, where both the price increase and the cost increase are presented as percentages, typically generates higher perceived...