The importance of transparency signals in à la carte pricing

Thomas Robbert () and Stefan Roth ()
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Thomas Robbert: University of Kaiserslautern
Stefan Roth: University of Kaiserslautern

Journal of Revenue and Pricing Management, 2018, vol. 17, issue 1, No 5, 32-40

Abstract: Abstract The appearance of highly customized services has increased the need for à la carte pricing schemes, in which several components of the product or service are offered separately. Despite the positive consequences of customized services (e.g., better fit to customer requirements), consumer acceptance of à la carte pricing schemes is an important success factor. This study shows that consumers mostly infer self-serving rather than customer-serving intentions as a reason to implement à la carte pricing. However, it also shows that negative perceptions of such pricing can be reduced when a credible advertising claim stresses a customer-oriented transparency motive of the service provider.

Keywords: À la carte pricing; Customized services; Partitioned pricing; Price transparency; Add-on pricing; Price bundling; Drip pricing (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41272-017-0128-7

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