How self-construal guides preference for partitioned versus combined pricing

Gopal Das, Rajat Roy*

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

Marketers often offer equivalent pricing options by charging a base price and surcharges (partitioned pricing), or alternately offering a single price (combined pricing). The current study examines the systematic impact of a person's activated self-construal on the evaluation of product offers made under these alternate pricing frames. Findings from three experiments show that individuals with independent self-construal lean towards global processing and exhibit higher attractiveness and purchase intention for a product offered under partitioned (versus combined) pricing. Furthermore, moderated mediation results show that the interaction effects of self-construal and pricing type on attractiveness and purchase intention are mediated by less effortful processing of pricing information. These results contribute to the pricing and self-construal literature. The results of this study may also help managers develop appropriate pricing strategies targeting different consumer segments.

Original languageEnglish
Pages (from-to)152-160
Number of pages9
JournalJournal of Business Research
Volume101
Early online date24 Apr 2019
DOIs
Publication statusPublished - 1 Aug 2019

    Fingerprint

Cite this