When do consumers prefer partitioned prices? The role of mood and pricing tactic persuasion knowledge
Gopal Das,
Rajat Roy and
Vik Naidoo
Journal of Business Research, 2020, vol. 116, issue C, 60-67
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.
Keywords: Partitioned pricing; Combined pricing; Mood; Pricing tactic persuasion knowledge (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:116:y:2020:i:c:p:60-67
DOI: 10.1016/j.jbusres.2020.05.013
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