Event-related potential analysis on the influence of regional price and marketing strategy over consumers' purchase decisions

Abstract

In online shopping, the most severe security risk stems from the information asymmetry between sellers and consumers. From the perspective of neurocognition, this paper explores the effects of regional price and marketing strategy on consumers' purchase decisions. Specifically, the Stimulus-Organism-Response (SOR) model was employed to simulate the consumers' purchase decision-making behavior. The event-related potential (ERP) analysis was conducted to reveal the impacts of regional price on consumers' purchase intention, and analyze the decision-making mechanism of consumers. The results show that the regional price and marketing strategy can affect the consumers' perceived value; this effect is mediated by the consumers' cognition degree of the product; the making of purchase decisions can be divided into three phases, namely, cognition of risk, cognition of conflict and evaluation of decision; the three phases correspond to different electroencephalogram (EEG) components: N2, N400 and LPP, respectively.