How self-construal guides preference for partitioned versus combined pricing

Gopal Das, Rajat Roy

Research output: Contribution to journalArticleResearchpeer-review

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

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Self-construal
Pricing
Attractiveness
Purchase intention
Experiment
Managers
Marketers
Mediation
Interaction effects
Pricing strategy
Targeting
Option pricing
Evaluation

Cite this

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How self-construal guides preference for partitioned versus combined pricing. / Das, Gopal; Roy, Rajat.

In: Journal of Business Research, Vol. 101, 01.08.2019, p. 152-160.

Research output: Contribution to journalArticleResearchpeer-review

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