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Differentiation and Parity in Assortment Pricing

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  • Alexander Chernev

Abstract

Are consumers more likely to purchase an item from an assortment in which options are priced at parity or from an assortment in which options vary in price? This research examines the influence of parity-pricing and differentiation-pricing strategies on consumer choice and identifies conditions in which parity pricing facilitates choice, as well as conditions in which choice is facilitated by differential pricing. In a series of three experiments, the impact of assortment pricing on choice is shown to be a function of the uncertainty associated with consumers' preferences and the consistency of these preferences with options' prices. (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..

Suggested Citation

  • Alexander Chernev, 2006. "Differentiation and Parity in Assortment Pricing," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(2), pages 199-210, July.
    • Handle: RePEc:oup:jconrs:v:33:y:2006:i:2:p:199-210
    DOI: 10.1086/506301
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    Cited by:

    1. Dimitrios Tsekouras & Benedict G. C. Dellaert & Bas Donkers & Gerald Häubl, 2020. "Product set granularity and consumer response to recommendations," Journal of the Academy of Marketing Science, Springer, vol. 48(2), pages 186-202, March.
    2. Willart, Sylvain P.C., 2015. "Price competition in retailing: The importance of the price density function," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 125-132.
    3. Birger Wernerfelt, 2008. "Class Pricing," Marketing Science, INFORMS, vol. 27(5), pages 755-763, 09-10.
    4. Wasib Latif, 2022. "Determinants of Hotel Brand Image: A Unified Model of Customer-Based Brand Equity," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 13(1), pages 1-20, January.
    5. Lange, Jens & Krahé, Barbara, 2014. "The effects of information form and domain-specific knowledge on choice deferral," Journal of Economic Psychology, Elsevier, vol. 43(C), pages 92-104.

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