To buy or not to buy? Price salience in an online shopping field experiment
Mats Köster and
Matthias Sutter ()
No 333, DICE Discussion Papers from University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
We examine whether shrouding or partitioning of a surcharge raises demand in online shopping. In a field experiment with more than 34,000 consumers, we find that consumers in the online shop of a cinema initiate a purchase process for a 3D movie more often when the 3D surcharge is shrouded, but they also drop out more often when the overall price is shown at the check-out. In sum, the demand distribution is independent of the price presentation. This result qualifies previous findings on the effectiveness of shrouding surcharges and can be rationalized through low cancellation costs.
Keywords: Salience; Inattention; Shrouding; Price partitioning; Field experiment (search for similar items in EconPapers)
JEL-codes: D81 C93 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:dicedp:333
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