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The zero-price effect in a multicomponent product context

Elisa Baumbach

International Journal of Research in Marketing, 2016, vol. 33, issue 3, 689-694

Abstract: This study replicates and extends prior research from single product contexts and multicomponent product contexts on the zero-price effect, i.e., an overproportional increase in demand when formerly priced products are offered for free. The results reconfirm that the zero-price effect is based on consumers' emotional responses to the price of zero. The increased positive affect does translate into the zero-price effect in a high-price multicomponent product context but not in a high-price single product context. Interestingly, additional information on the price ratio of the offered products nullifies the zero-price effect in the high-price multicomponent product context.

Keywords: Zero-price effect; Price affect; Bundle; Behavioral pricing; Emotions; Price (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:33:y:2016:i:3:p:689-694

DOI: 10.1016/j.ijresmar.2016.01.009

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