IDEAS home Printed from https://ideas.repec.org/a/mth/bmh888/v4y2016i1p22-38.html
   My bibliography  Save this article

Using Experimental Survey Designs to Support Pricing Decisions

Author

Listed:
  • Andreas Kramer

Abstract

Due to a changing marketing environment (more volatile, uncertain, complex and ambiguous framework, digitization) and the lack of a consistent pricing approach (challenge to harmonize neoclassical and behavioral elements), managers are increasingly questioning established ways to determine price levels and display price structures. Experimental testing represents a possibility to provide a decision support to pricing managers in the short run. The article presents three different projects, which quantitatively examine key elements of behavioral pricing: (1) the ¡°Center-stage Effect¡± (electricity contract), (2) the impact of context on price perception (promotional campaigns for train tickets) and (3) offering of price guarantees as a means for improving the overall image as well as customer loyalty of the supplier (gas station). The results are partly unexpected as they contradict often-cited rules of thumb in behavioral pricing. Hence, it can be shown that experimental testing based on online surveys is a valuable and cost-efficient method to optimize price structures, price levels as well as price communication.

Suggested Citation

  • Andreas Kramer, 2016. "Using Experimental Survey Designs to Support Pricing Decisions," Business and Management Horizons, Macrothink Institute, vol. 4(1), pages 22-38, June.
    • Handle: RePEc:mth:bmh888:v:4:y:2016:i:1:p:22-38
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/bmh/article/view/9355/7611
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/bmh/article/view/9355
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Krista J. Li & Sanjay Jain, 2016. "Behavior-Based Pricing: An Analysis of the Impact of Peer-Induced Fairness," Management Science, INFORMS, vol. 62(9), pages 2705-2721, September.
    2. Shai Danziger & Liat Hadar & Vicki G. Morwitz, 2014. "Retailer Pricing Strategy and Consumer Choice under Price Uncertainty," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(3), pages 761-774.
    3. Anatoliy, Kucher, 2016. "Еколого-Економічна Оцінка Емісії Со2 З Ґрунтів За Різних Рівнів Антропогенного Навантаження," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    4. Curtis R. Taylor, 2004. "Consumer Privacy and the Market for Customer Information," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 631-650, Winter.
    5. Lynn, Michael & Flynn, Sean Masaki & Helion, Chelsea, 2013. "Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 96-102.
    6. Andreas Krämer & Martin Jung & Thomas Burgartz, 2016. "A Small Step from Price Competition to Price War: Understanding Causes, Effects and Possible Countermeasures," International Business Research, Canadian Center of Science and Education, vol. 9(3), pages 1-13, March.
    7. Rajagopal, 2012. "Understanding Market Competition," Palgrave Macmillan Books, in: Darwinian Fitness in the Global Marketplace, chapter 2, pages 34-65, Palgrave Macmillan.
    8. Manoj Thomas & Vicki Morwitz, 2005. "Penny Wise and Pound Foolish: The Left-Digit Effect in Price Cognition," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(1), pages 54-64, June.
    9. Janiszewski, Chris & Lichtenstein, Donald R, 1999. "A Range Theory Account of Price Perception," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(4), pages 353-368, March.
    Full references (including those not matched with items on IDEAS)

    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. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    2. Jan Wieseke & Anika Kolberg & Laura Marie Schons, 2016. "Life could be so easy: the convenience effect of round price endings," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 474-494, July.
    3. Meng, Charlotte C., 2023. "The price paid: Heuristic thinking and biased reference points in the housing market," Journal of Urban Economics, Elsevier, vol. 134(C).
    4. Santana, Shelle & Thomas, Manoj & Morwitz, Vicki G., 2020. "The Role of Numbers in the Customer Journey," Journal of Retailing, Elsevier, vol. 96(1), pages 138-154.
    5. Mukherjee, Sudipta & Pandelaere, Mario, 2023. "The influence of self-decided prices on expected quality," Journal of Business Research, Elsevier, vol. 160(C).
    6. Zhijun Chen & Chongwoo Choe & Noriaki Matsushima, 2020. "Competitive Personalized Pricing," Management Science, INFORMS, vol. 66(9), pages 4003-4023, September.
    7. Carver, James R. & Padgett, Daniel T., 2012. "Product Category Pricing and Future Price Attractiveness: 99-Ending Pricing in a Memory-Based Context," Journal of Retailing, Elsevier, vol. 88(4), pages 497-511.
    8. Hackl, Franz & Kummer, Michael E. & Winter-Ebmer, Rudolf, 2014. "99 Cent: Price points in e-commerce," Information Economics and Policy, Elsevier, vol. 26(C), pages 12-27.
    9. Marcial López-Pastor & Jesús García-Madariaga & Joaquín Sánchez & Jose Figueiredo, 2020. "Demand Impact for Prices Ending with “9” and “0” in Online and Offline Consumer Goods Retail Trade Channels," International Review of Management and Marketing, Econjournals, vol. 10(6), pages 58-78.
    10. Li, Jianpei & Zhang, Wanzhu, 2022. "Behavior-based price discrimination and signaling of product quality," MPRA Paper 111572, University Library of Munich, Germany.
    11. Lillian L. Cheng & Kent B. Monroe, 2013. "An appraisal of behavioral price research (part 1): price as a physical stimulus," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 103-129, September.
    12. Jeong, Ji Youn & Crompton, John L., 2017. "The use of odd-ending numbers in the pricing of five tourism services in three different cultures," Tourism Management, Elsevier, vol. 62(C), pages 135-146.
    13. Damon Alexander & Christopher Boone & Michael Lynnb, 2021. "The Effects of Tip Recommendations on Customer Tipping, Satisfaction, Repatronage, and Spending," Management Science, INFORMS, vol. 67(1), pages 146-165, January.
    14. Luc Wathieu & Allan Friedman, 2009. "An empirical approach to understanding privacy concerns," ESMT Research Working Papers ESMT-09-001, ESMT European School of Management and Technology, revised 14 Jan 2009.
    15. Bastian Popp & Herbert Woratschek, 2017. "Consumer–brand identification revisited: An integrative framework of brand identification, customer satisfaction, and price image and their role for brand loyalty and word of mouth," Journal of Brand Management, Palgrave Macmillan, vol. 24(3), pages 250-270, May.
    16. Potoglou, Dimitris & Palacios, Juan & Feijoo, Claudio & Gómez Barroso, Jose-Luis, 2015. "The supply of personal information: A study on the determinants of information provision in e-commerce scenarios," 26th European Regional ITS Conference, Madrid 2015 127174, International Telecommunications Society (ITS).
    17. Xi Chen & Zachary Owen & Clark Pixton & David Simchi-Levi, 2022. "A Statistical Learning Approach to Personalization in Revenue Management," Management Science, INFORMS, vol. 68(3), pages 1923-1937, March.
    18. Crawford, Gregory, 2013. "Cable Regulation in the Internet Era," CEPR Discussion Papers 9316, C.E.P.R. Discussion Papers.
    19. Snir, Avichai & Levy, Daniel & Chen, Haipeng (Allan), 2017. "End of 9-endings, price recall, and price perceptions," Economics Letters, Elsevier, vol. 155(C), pages 157-163.
    20. Ahmadi, Iman & Skiera, Bernd & Lambrecht, Anja & Heubrandner, Florian, 2017. "Time preferences and the pricing of complementary durables and consumables," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 813-828.

    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:mth:bmh888:v:4:y:2016:i:1:p:22-38. 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: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/bmh .

    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.