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

Gopal Das, Rajat Roy, Vik Naidoo

Research output: Contribution to journalArticleResearchpeer-review

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.
Original languageEnglish
Pages (from-to)60-67
Number of pages8
JournalJournal of Business Research
Volume116
Issue number20
Early online date20 May 2020
DOIs
Publication statusPublished - Aug 2020

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