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Surcharges and Seller Reputation

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  • Amar Cheema
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    Abstract

    We propose that consumers buying from low- (vs. high-) reputation sellers pay greater attention to surcharges. Thus, reputation moderates the effect of surcharges on purchase. Data from eBay show that consumers adjust bids to account for surcharges when buying from low-reputation sellers but not when buying from high-reputation sellers (study 1). Study 2 replicates this effect with partitioned versus consolidated prices. Study 3 reveals that consumers take longer to make purchasing decisions when buying from low-reputation sellers and that response times mediate the moderating role of reputation. Furthermore, the effect of surcharges levied by low-reputation sellers is attenuated for consumers with low (vs. high) need for cognition (study 4). (c) 2008 by JOURNAL OF CONSUMER RESEARCH, Inc..

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Consumer Research.

    Volume (Year): 35 (2008)
    Issue (Month): 1 (02)
    Pages: 167-177

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    Handle: RePEc:ucp:jconrs:v:35:y:2008:i:1:p:167-177

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    Web page: http://www.journals.uchicago.edu/JCR/

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    Cited by:
    1. Willem Boom, 2011. "Price Intransparency, Consumer Decision Making and European Consumer Law," Journal of Consumer Policy, Springer, vol. 34(3), pages 359-376, September.
    2. Cheema, Amar & Papatla, Purushottam, 2010. "Relative importance of online versus offline information for Internet purchases: Product category and Internet experience effects," Journal of Business Research, Elsevier, vol. 63(9-10), pages 979-985, September.
    3. Anja Lambrecht & Katja Seim & Naufel Vilcassim & Amar Cheema & Yuxin Chen & Gregory Crawford & Kartik Hosanagar & Raghuram Iyengar & Oded Koenigsberg & Robin Lee & Eugenio Miravete & Ozge Sahin, 2012. "Price discrimination in service industries," Marketing Letters, Springer, vol. 23(2), pages 423-438, June.
    4. 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.
    5. Jiang, Yuanchun & Shang, Jennifer & Liu, Yezheng, 2013. "Optimizing shipping-fee schedules to maximize e-tailer profits," International Journal of Production Economics, Elsevier, vol. 146(2), pages 634-645.
    6. Jannett Highfill & Kevin O’Brien, 2009. "The Effect of Alternative e-Prices on eBay Book Auctions," Atlantic Economic Journal, International Atlantic Economic Society, vol. 37(4), pages 383-395, December.

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