IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v61y2008i7p724-731.html
   My bibliography  Save this article

Examining differences in consumer reactions to partitioned prices with a variable number of price components

Author

Listed:
  • Carlson, Jay P.
  • Weathers, Danny

Abstract

Partitioned pricing is a tactic in which a seller presents multiple prices for a single product or service instead of one, all-inclusive price. This research investigates effects of partitioned prices containing a variable number of price components, under varying levels of seller trustworthiness, and with or without the presentation of the total price. The results indicate that partitioning into a large number of price components, relative to a small number of price components, negatively affects perceived fairness and purchase intentions for less trustworthy, but not more trustworthy, sellers when the total price is not presented. However, partitioning into a large number of price components positively affects fairness and purchase intentions, regardless of seller trustworthiness, when the total price is presented. The research also examines effects of partitioning on price estimation and recall.

Suggested Citation

  • Carlson, Jay P. & Weathers, Danny, 2008. "Examining differences in consumer reactions to partitioned prices with a variable number of price components," Journal of Business Research, Elsevier, vol. 61(7), pages 724-731, July.
    • Handle: RePEc:eee:jbrese:v:61:y:2008:i:7:p:724-731
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(07)00267-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John F. Gaski & Michael J. Etzel, 2005. "National Aggregate Consumer Sentiment toward Marketing: A Thirty-Year Retrospective and Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 859-867, March.
    2. Klaus Wertenbroch & Dilip Soman & Amitava Chattopadhyay, 2007. "On the Perceived Value of Money: The Reference Dependence of Currency Numerosity Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(1), pages 1-10, March.
    3. Alba, Joseph W & Marmorstein, Howard, 1987. "The Effects of Frequency Knowledge on Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(1), pages 14-25, June.
    4. Boulding, William & Kirmani, Amna, 1993. "A Consumer-Side Experimental Examination of Signaling Theory: Do Consumers Perceive Warranties as Signals of Quality?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(1), pages 111-123, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amir Hossein Sepehrian & Zahra Sadat Mirzazadeh & Malihe Sadat Aghaei Shahri, 2023. "Effect of price transparency on the perception of fair price and satisfaction with the purchase of sports products," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(5), pages 327-337, October.
    2. Seung Hyun Lee & Jaeyong Lee, 2018. "Nickel and dime guests for amenities: exploring guests’ perceptions of resort fees," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(1), pages 20-31, February.
    3. Ferguson, Jodie L., 2014. "Implementing price increases in turbulent economies: Pricing approaches for reducing perceptions of price unfairness," Journal of Business Research, Elsevier, vol. 67(1), pages 2732-2737.
    4. Dertwinkel-Kalt, Markus & Köster, Mats & Peiseler, Florian, 2019. "Attention-driven demand for bonus contracts," European Economic Review, Elsevier, vol. 115(C), pages 1-24.
    5. David Bürgin & Robert Wilken, 2022. "Increasing Consumers’ Purchase Intentions Toward Fair-Trade Products Through Partitioned Pricing," Journal of Business Ethics, Springer, vol. 181(4), pages 1015-1040, December.
    6. Kuo, Andrew & Rice, Dan Hamilton & Fennell, Patrick, 2016. "How fitting! The influence of fence-context fit on price discrimination fairness," Journal of Business Research, Elsevier, vol. 69(8), pages 2634-2640.
    7. Markus Dertwinkel-Kalt & Mats Köster & Matthias Sutter, 2019. "To Buy or not to Buy? Shrouding and Partitioning of Prices in an Online Shopping Field Experiment," CESifo Working Paper Series 7475, CESifo.
    8. Ferguson, Jodie L. & Brown, Brian P. & Johnston, Wesley J., 2017. "Partitioned pricing, price fairness perceptions, and the moderating effects of brand relationships in SME business markets," Journal of Business Research, Elsevier, vol. 72(C), pages 80-92.
    9. Ernan Haruvy & Boram Lim & Peter T. L. Popkowski Leszczyc, 2023. "The effect of surcharge on price in online auctions," Electronic Commerce Research, Springer, vol. 23(2), pages 1161-1182, June.
    10. Patrick Sihler & Markus Voeth, 2019. "Der Preis der Freiheit – Analyse der Kundenakzeptanz verhaltensabhängiger Preise [The Price of Freedom—Analysis of Customer Acceptance of Usage Behavior-based Pricing]," Schmalenbach Journal of Business Research, Springer, vol. 71(1), pages 45-78, March.
    11. Yang, Bi & Li, Shanshi & Chen, Zhenyu & Mattila, Anna S., 2023. "Consumer responses to time-based sales messages," Annals of Tourism Research, Elsevier, vol. 99(C).
    12. Pade, Robin & Feurer, Sven, 2022. "The mitigating role of nostalgia for consumer price unfairness perceptions in response to disadvantageous personalized pricing," Journal of Business Research, Elsevier, vol. 145(C), pages 277-287.
    13. Rasch, Alexander & Thöne, Miriam & Wenzel, Tobias, 2020. "Drip pricing and its regulation: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 353-370.
    14. Chu, Wujin & Lee, Jeongmin & Baumann, Chris & Kang, Christine, 2020. "Fairness perception of ancillary fees: Industry differences and communication strategies," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    15. Ahmetoglu, Gorkan & Furnham, Adrian & Fagan, Patrick, 2014. "Pricing practices: A critical review of their effects on consumer perceptions and behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 696-707.
    16. Layer, Patrick & Feurer, Sven & Jochem, Patrick, 2017. "Perceived price complexity of dynamic energy tariffs: An investigation of antecedents and consequences," Energy Policy, Elsevier, vol. 106(C), pages 244-254.
    17. Katja Seim & Maria Ana Vitorino & David M. Muir, 2017. "Do consumers value price transparency?," Quantitative Marketing and Economics (QME), Springer, vol. 15(4), pages 305-339, December.
    18. Mittal, Divya & Agrawal, Shiv Ratan, 2016. "Price transparency reflects assurance and reliability," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 43-51.
    19. Richard C. Bishop & Kevin J. Boyle, 2021. "On Adding-Up as a Validity Criterion for Stated-Preference Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 587-601, November.
    20. Choi, Jungsil & Madhavaram, Sreedhar R. & Park, Hyun Young, 2020. "The Role of Hedonic and Utilitarian Motives on the Effectiveness of Partitioned Pricing," Journal of Retailing, Elsevier, vol. 96(2), pages 251-265.
    21. Homburg, Christian & Totzek, Dirk & Krämer, Melanie, 2014. "How price complexity takes its toll: The neglected role of a simplicity bias and fairness in price evaluations," Journal of Business Research, Elsevier, vol. 67(6), pages 1114-1122.
    22. Johannes Voester & Bjoern Ivens & Alexander Leischnig, 2017. "Partitioned pricing: review of the literature and directions for further research," Review of Managerial Science, Springer, vol. 11(4), pages 879-931, October.
    23. Lerman, Dawn & Shefrin, Hersh, 2015. "Positive marketing: Introduction to the special section," Journal of Business Research, Elsevier, vol. 68(12), pages 2443-2445.
    24. Franziska Völckner & Alexander Rühle & Martin Spann, 2012. "To divide or not to divide? The impact of partitioned pricing on the informational and sacrifice effects of price," Marketing Letters, Springer, vol. 23(3), pages 719-730, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    2. Nitin Walia & Mark Srite & Wendy Huddleston, 2016. "Eyeing the web interface: the influence of price, product, and personal involvement," Electronic Commerce Research, Springer, vol. 16(3), pages 297-333, September.
    3. He, Haonan & Wang, Shanyong, 2019. "Cost-benefit associations in consumer inventory problem with uncertain benefit," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 271-284.
    4. Sheng, Shibin & Pan, Yue, 2009. "Bundling as a new product introduction strategy: The role of brand image and bundle features," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 367-376.
    5. Shu Wang & Ying-Kai Liao & Wann-Yih Wu & Khanh Bao Ho Le, 2021. "The Role of Corporate Social Responsibility Perceptions in Brand Equity, Brand Credibility, Brand Reputation, and Purchase Intentions," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    6. Glückstad, Fumiko Kano & Schmidt, Mikkel N. & Mørup, Morten, 2020. "Testing a model of destination image formation: Application of Bayesian relational modelling and fsQCA," Journal of Business Research, Elsevier, vol. 120(C), pages 351-363.
    7. Wenyan Zhou & Oliver Hinz, 2016. "Determining profit-optimizing return policies – a two-step approach on data from taobao.com," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 103-114, May.
    8. M. Billur Akdeniz & Roger J. Calantone, 2017. "A longitudinal examination of the impact of quality perception gap on brand performance in the US Automotive Industry," Marketing Letters, Springer, vol. 28(1), pages 43-57, March.
    9. Jehn-Yih Wong & Sheng-Hshiung Tsaur & Chih-Hung Wang, 2008. "Should a lower-price service offer a full-satisfaction guarantee?," The Service Industries Journal, Taylor & Francis Journals, vol. 29(9), pages 1261-1272, January.
    10. repec:dau:papers:123456789/4215 is not listed on IDEAS
    11. Dutta, Sujay & Bhowmick, Sandeep, 2009. "Consumer responses to offline and online low price signals: The role of cognitive elaboration," Journal of Business Research, Elsevier, vol. 62(6), pages 629-635, June.
    12. Cambier, Fanny & Poncin, Ingrid, 2020. "Inferring brand integrity from marketing communications: The effects of brand transparency signals in a consumer empowerment context," Journal of Business Research, Elsevier, vol. 109(C), pages 260-270.
    13. Lee, Khai Sheang & Tan, Soo Jiuan, 2003. "E-retailing versus physical retailing: A theoretical model and empirical test of consumer choice," Journal of Business Research, Elsevier, vol. 56(11), pages 877-885, November.
    14. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    15. Vera Herédia-Colaço & Rita Coelho do Vale & Sofia B. Villas-Boas, 2019. "Does Fair Trade Breed Contempt? A Cross-Country Examination on the Moderating Role of Brand Familiarity and Consumer Expertise on Product Evaluation," Journal of Business Ethics, Springer, vol. 156(3), pages 737-758, May.
    16. Antonio J. Morales & Enrique Fatas, 2021. "Price competition and nominal illusion: experimental evidence and a behavioural model," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(4), pages 607-632, December.
    17. Dertwinkel-Kalt, Markus & Köster, Mats, 2015. "Violations of first-order stochastic dominance as salience effects," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 42-46.
    18. Kurt, Didem & Pauwels, Koen & Kurt, Ahmet C. & Srinivasan, Shuba, 2021. "The asymmetric effect of warranty payments on firm value: The moderating role of advertising, R&D, and industry concentration," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 817-837.
    19. Pieniak, Zuzanna & Vanhonacker, Filiep & Verbeke, Wim, 2013. "Consumer knowledge and use of information about fish and aquaculture," Food Policy, Elsevier, vol. 40(C), pages 25-30.
    20. Tseng, Aihua, 2017. "Why do online tourists need sellers' ratings? Exploration of the factors affecting regretful tourist e-satisfaction," Tourism Management, Elsevier, vol. 59(C), pages 413-424.
    21. Hsin‐Hui Lin & Pin‐Han Chen & Chih‐Lun Wu, 2023. "Exploring the price anchoring effect in mobile commerce: An experimental study," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1601-1623, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:61:y:2008:i:7:p:724-731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.