IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v116y2020icp60-67.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320303076
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2020.05.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Marco Bertini & Luc Wathieu, 2008. "Research Note—Attention Arousal Through Price Partitioning," Marketing Science, INFORMS, vol. 27(2), pages 236-246, 03-04.
    2. Kumar, V. & Anand, Ankit & Song, Hyunseok, 2017. "Future of Retailer Profitability: An Organizing Framework," Journal of Retailing, Elsevier, vol. 93(1), pages 96-119.
    3. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    4. Braun-LaTour, Kathryn A. & Puccinelli, Nancy M. & Mast, Fred W., 2007. "Mood, information congruency, and overload," Journal of Business Research, Elsevier, vol. 60(11), pages 1109-1116, November.
    5. Friestad, Marian & Wright, Peter, 1994. "The Persuasion Knowledge Model: How People Cope with Persuasion Attempts," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 1-31, June.
    6. Amar Cheema, 2008. "Surcharges and Seller Reputation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(1), pages 167-177, February.
    7. Das, Gopal & Roy, Rajat, 2019. "How self-construal guides preference for partitioned versus combined pricing," Journal of Business Research, Elsevier, vol. 101(C), pages 152-160.
    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. Lerner, Jennifer & Han, Seunghee & Keltner, Dacher, 2007. "Feelings and Consumer Decision Making: Extending the Appraisal-Tendency Framework," Scholarly Articles 37143006, Harvard Kennedy School of Government.
    10. Kachersky, Luke, 2011. "Reduce Content or Raise Price? The Impact of Persuasion Knowledge and Unit Price Increase Tactics on Retailer and Product Brand Attitudes," Journal of Retailing, Elsevier, vol. 87(4), pages 479-488.
    11. Andrea C. Morales & On Amir & Leonard Lee, 2017. "Keeping It Real in Experimental Research—Understanding When, Where, and How to Enhance Realism and Measure Consumer Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(2), pages 465-476.
    12. Pillai, Kishore Gopalakrishna & Kumar, V., 2012. "Differential Effects of Value Consciousness and Coupon Proneness on Consumers’ Persuasion Knowledge of Pricing Tactics," Journal of Retailing, Elsevier, vol. 88(1), pages 20-33.
    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. Kjellberg, Hans & Sjögren, Ebba & Krafve, Linus Johansson, 2023. "The functions of known to be inaccurate prices in markets: A cross-country comparison of pharmaceutical list pricing," Journal of Business Research, Elsevier, vol. 167(C).
    2. 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).
    3. Vahid Rahmani, 2023. "Persuasion knowledge framework: Toward a comprehensive model of consumers’ persuasion knowledge," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 12-33, June.
    4. Roy, Rajat & Das, Gopal, 2022. "The role of contextual factors in increasing Pay-What-You-Want payments: Evidence from field experiments," Journal of Business Research, Elsevier, vol. 139(C), pages 1540-1552.

    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. James J. Zboja & Ronald A. Clark & Diana L. Haytko, 2016. "An offer you can’t refuse: consumer perceptions of sales pressure," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 806-821, November.
    2. 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.
    3. Alexander B. Pratt & Stacey G. Robinson & Clay M. Voorhees & Joyce (Feng) Wang & Michael D. Giebelhausen, 2023. "Unintended effects of price promotions: Forgoing competitors’ price promotions strengthens incumbent brand loyalty," Journal of the Academy of Marketing Science, Springer, vol. 51(5), pages 1143-1164, September.
    4. Puccinelli, Nancy M. & Goodstein, Ronald C. & Grewal, Dhruv & Price, Robert & Raghubir, Priya & Stewart, David, 2009. "Customer Experience Management in Retailing: Understanding the Buying Process," Journal of Retailing, Elsevier, vol. 85(1), pages 15-30.
    5. Golovacheva, E., 2016. "When consumers activate persuasion knowledge: Review of antecedents and consequences," Working Papers 6440, Graduate School of Management, St. Petersburg State University.
    6. Golovacheva, K., 2015. "Consumer response to unit price increase: The role of pricing tactics and consumer knowledge," Working Papers 6421, Graduate School of Management, St. Petersburg State University.
    7. 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.
    8. Kim, Claire Heeryung & Han, Eunjoo, 2020. "Premiums Paid for What You Believe In: The Interactive Roles of Price Promotion and Cause Involvement on Consumer Response," Journal of Retailing, Elsevier, vol. 96(2), pages 235-250.
    9. 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.
    10. Choi, Jungsil & Park, Hyun Young, 2021. "How donor's regulatory focus changes the effectiveness of a sadness-evoking charity appeal," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 749-769.
    11. 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.
    12. 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.
    13. 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.
    14. Lutz Kaufmann & Moritz Schreiner & Felix Reimann, 2023. "Narratives in supplier negotiations—The interplay of narrative design elements, structural power, and outcomes," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(1), pages 66-94, January.
    15. Vahid Rahmani, 2023. "Persuasion knowledge framework: Toward a comprehensive model of consumers’ persuasion knowledge," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 12-33, June.
    16. Shelle Santana & Steven K. Dallas & Vicki G. Morwitz, 2020. "Consumer Reactions to Drip Pricing," Marketing Science, INFORMS, vol. 39(1), pages 188-210, January.
    17. Arndt, Aaron D. & Evans, Kenneth R. & Zahedi, Ziniya & Khan, Emmyrose, 2019. "Competent or threatening? When looking like a “salesperson†is disadvantageous," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 166-176.
    18. Main, Kelley J. & Guo, Wenxia & White, Katherine, 2019. "Sensitivity to Ulterior Motives in Retail Settings: The Moderating Role of Dual-Identity versus Sole-Identity Consumers," Journal of Retailing, Elsevier, vol. 95(3), pages 63-75.
    19. Hou, Chenxuan & Sarigöllü, Emine, 2022. "Is bigger better? How the scale effect influences green purchase intention: The case of washing machine," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    20. Hu Wang & Di Li & Changbin Jiang, 2023. "Online retailers' price structure decisions in competitive markets: A structure–conduct–performance framework," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1125-1141, March.

    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:116:y:2020:i:c:p:60-67. 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.