The DOI matches its Crossref record; 7 of the 7 references it cites were found in a registry or an index.
Divide and Prosper: Consumers’ Reactions to Partitioned Prices
Abstract
Many firms divide a product's price into two mandatory parts, such as the base price of a mail-order shirt and the surcharge for shipping and handling, rather than charging a combined, all-inclusive price. The authors call this strategy partitioned pricing. Although firms presumably use partitioned pricing to increase demand and profits, there is little clear empirical support that these prices increase demand or any theoretical explanation for why this should occur. The authors test hypotheses of how consumers process partitioned prices and how partitioned pricing affects consumers’ processing and recall of total costs and their purchase intentions and certain types of demand. The results suggest that partitioned prices decrease consumers’ recalled total costs and increase their demand. The manner in which the surcharge is presented and consumers’ affect for the brand name also influence how they react to partitioned prices.
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Cites
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Cited by
Reference Price Research: Review and Propositions
Mazumdar, T., Raj, S. P., & Sinha, I. (2005) · Journal of Marketing · doi:10.1509/jmkg.2005.69.4.84 · Cited by 848
Strategic Bundling of Products and Prices: A New Synthesis for Marketing
Stremersch, S., & Tellis, G. J. (2002) · Journal of Marketing · doi:10.1509/jmkg.66.1.55.18455 · Cited by 788
Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets
Gabaix, X., & Laibson, D. I. (2005) · SSRN Electronic Journal · doi:10.2139/ssrn.728545 · Cited by 441
...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay
Hossain, T., & Morgan, J. (2006) · The B.E. Journal of Economic Analysis & Policy · doi:10.2202/1538-0637.1429 · Cited by 384
Effects of price framing on consumers’ perceptions of online dynamic pricing practices
Weisstein, F. L., Monroe, K. B., & Kukar-Kinney, M. (2013) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-013-0330-0 · Cited by 146
Metadata
- Authors
- Morwitz, V. G., Greenleaf, E. A., & Johnson, E. J.
- Venue
- Journal of Marketing Research
- Publisher
- SAGE Publications
- Published
- 1998-11
- Volume
- 35
- Issue
- 4
- Pages
- 453-463
- ISSN
- 0022-2437 (ISSN-L)
- 1547-7193
- OpenAlex
- W3124346291
- Cited by
- 406
- References
- 7
- FWCI
- 17.26
- Type
- journal article
- Language
- en
- Open access
- closed
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- Morwitz, V. G., Greenleaf, E. A., & Johnson, E. J. (1998). Divide and Prosper: Consumers’ Reactions to Partitioned Prices. Journal of Marketing Research. https://doi.org/10.1177/002224379803500404
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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