{"id":3927,"date":"2021-05-10T06:21:58","date_gmt":"2021-05-10T06:21:58","guid":{"rendered":"http:\/\/3.35.173.53\/?p=3927"},"modified":"2021-05-10T06:21:58","modified_gmt":"2021-05-10T06:21:58","slug":"raghubir-p-srivastava-j-2002-effect-of-face-value-on-product-valuation-in-foreign-currencies-journal-of-consumer-research-293-335-347","status":"publish","type":"post","link":"https:\/\/www.happyfinder.co.kr\/?p=3927","title":{"rendered":"Raghubir, P., & Srivastava, J. (2002). Effect of face value on product valuation in foreign currencies. Journal of Consumer Research, 29(3), 335-347."},"content":{"rendered":"

This article examines systematic differences in people’s spending behavior when using foreign currencies. Rather than overspend or underspend in general, we show that individuals’ valuation of a product in an unfamiliar foreign currency is biased toward its nominal value\u2014its face value\u2014with inadequate adjustment for the exchange rate. This leads to underspending when the face value of a foreign currency is a multiple of an equivalent unit of a home currency (e.g., 4 Malaysian ringgits = 1 U.S. dollar) and overspending when it is a fraction (e.g., .4 Bahraini dinar = 1 U.S. dollar). Four studies demonstrate the robustness of the face value effect across different currencies, exchange rate frames, and with samples from two countries, and two studies show that ability-related factors such as time pressure and experience moderate the face value effect. The article concludes by discussing the theoretical implications of the findings.<\/p>\n

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Raghubir, P., & Srivastava, J. (2002). Effect of face value on product valuation in foreign currencies. <\/span>Journal of Consumer Research, 29<\/span>(3), 335-347.<\/span><\/p>\n

https:\/\/doi.org\/10.1086\/344430<\/a> <\/span><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

This article examines systematic differences in people’s spending behavior when using foreign currencies. Rather than overspend or underspend in general, we show that individuals’ valuation of a product in an unfamiliar foreign currency is biased toward its nominal value\u2014its face value\u2014with inadequate adjustment for the exchange rate. This leads to underspending when the face value […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[28,15],"tags":[157,127],"_links":{"self":[{"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=\/wp\/v2\/posts\/3927"}],"collection":[{"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3927"}],"version-history":[{"count":1,"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=\/wp\/v2\/posts\/3927\/revisions"}],"predecessor-version":[{"id":3928,"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=\/wp\/v2\/posts\/3927\/revisions\/3928"}],"wp:attachment":[{"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.happyfinder.co.kr\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}