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When do consumers prefer partitioned prices? The role of mood and pricing tactic persuasion knowledge

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  • Das, Gopal
  • Roy, Rajat
  • Naidoo, Vik

Abstract

Through three laboratory experiments and a study conducted in a natural setting, this research investigates the unexplored area of the role of mood (positive versus negative), pricing frame (partitioned versus combined), and pricing tactic persuasion knowledge (PTPK = low versus high) on product attractiveness and purchase intention. Study 1 explores a mood × frame interaction, with results showing that subjects in the positive mood report higher attractiveness and purchase intention for a product framed in partitioned (versus combined) pricing. Studies 2A and 2B find a pricing frame × PTPK interaction, and the results reveal that low PTPK subjects prefer the partitioned (versus combined) pricing offer. This effect is found to be mediated by ease-of-processing. Finally, a study conducted in a natural setting enhances the external validity of the mood based findings. The observed results advance pricing theory and provide much-needed insights for managers.

Suggested Citation

  • Das, Gopal & Roy, Rajat & Naidoo, Vik, 2020. "When do consumers prefer partitioned prices? The role of mood and pricing tactic persuasion knowledge," Journal of Business Research, Elsevier, vol. 116(C), pages 60-67.
    • Handle: RePEc:eee:jbrese:v:116:y:2020:i:c:p:60-67
    DOI: 10.1016/j.jbusres.2020.05.013
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    4. Burman, Bidisha & Verma, Swati & Guha, Abhijit & Srivastava, Joydeep & Biswas, Abhijit, 2024. "Can a price discount Backfire? effects of the juxtaposition of Add-On fees and price discounts on consumer evaluations," Journal of Business Research, Elsevier, vol. 172(C).

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