The concepts of assimilation and contrast regions are important in understanding how consumers perceive prices and in conducting consumer research to measure the size of the assimilation region around a particular referent price. In behavioral economics and consumer psychology, consumers evaluate prices relative to a reference or "referent" price they have in mind. The assimilation region refers to the range of prices close enough to the reference price that consumers perceive them as essentially the same or acceptable, thus assimilating them into their expected price range. Prices outside this range may fall into the contrast region , where consumers perceive them as significantly different, leading to rejection or different evaluation. This concept helps explain how consumers form price perceptions and make purchase decisions based on price thresholds or reference prices. For example, consumers have a lower price threshold below which prices may signal inferior quality and an upper threshold beyond which prices seem unjustifiably high, influencing their perception and behavior
. Measuring the assimilation region allows marketers and researchers to understand how much price variation consumers tolerate around a reference price before their perception shifts. Such concepts are fundamental in price perception studies, where price is not just a number but a psychological signal affecting perceived value, quality, and purchase likelihood
. Understanding and measuring the assimilation region aids in designing pricing strategies that align with consumer expectations and maximize acceptance. In summary, the concepts of assimilation and contrast regions around a referent price are crucial for interpreting consumer price perception and for research that quantifies how consumers mentally categorize prices relative to their expectations.
