Abstract

The construal level theory explains a decision making process of consumer's choice behavior. However, since most of the existing studies are validated using data sets observed in laboratory experiments, there is insufficient discussion on the effectiveness of the findings revealed in the existing studies in real services. In this paper, we conduct an empirical analysis of construal level theory for individual consumers' price responses using purchase history data on retail stores. We use a hierarchical Bayesian multinomial logit model to analyze the relationship between the construal level and the price response of brand choice. The results show that some knowledge about consumer behavior and construal levels can be extracted by using purchase history data without any experimental design in actual retail stores.