Increasing Consumers’ Purchase Intentions Toward Fair-Trade Products Through Partitioned Pricing

Selling fair-trade products can be problematic because of their higher price when compared with conventional alternatives. We propose that one way to solve this problem is to make consumers aware of the benefits of fair-trade. To this end, we perform three experimental studies to show that partitioned pricing (PP), which explicitly displays fair-trade as a separate price component, increases consumers’ purchase intention toward the fair-trade product. This effect can be explained by increased perceptions of price fairness, which itself is mediated through transparency (but only if an additional verbal justification of the fair-trade price component is present). In the absence of such a verbal justification, recalled prices instead of transparency explain the positive effect of PP on consumers’ purchase intentions. Interestingly, boundary conditions of this effect barely exist. Our incentive-aligned study illustrates that PP is associated with a 20% increase in purchases of fair-trade products. The results demonstrate an opportunity to increase the market share of fair-trade products, which increases social welfare and sustainability.

An Examination of Partitioned Pricing and the Influence of Culture and Familiarity on Sport Consumer Behavior

Prior research has examined consumer behavior toward partitioned pricing in various capacities, including types and number of surcharges and the use of dollars versus percentages. Given the fact partitioned pricing is not employed in every country, this investigation focused on consumer behavior toward this pricing strategy based on familiarity with partitioned pricing and cultural differences. An experimental design was implemented to examine South Korean and US sport consumers’ attitudes and behaviors related to ticket prices for a mega-sporting event. The findings showed all-inclusive pricing, in general, is preferred and culture does not significantly impact consumer behavior in this context. Additionally, familiarity moderated the relationship between cultural differences and consumer behavior. Consumers who were familiar with partitioned pricing were more attracted to partitioned pricing ticket offers and had higher purchase intentions compared to consumers who were less familiar with the practice. Implications of these findings are discussed along with directions for future research.

An Examination of Partitioned Pricing and the Influence of Culture and Familiarity on Sport Consumer Behavior

Prior research has examined consumer behavior toward partitioned pricing in various capacities, including types and number of surcharges and the use of dollars versus percentages. Given the fact partitioned pricing is not employed in every country, this investigation focused on consumer behavior toward this pricing strategy based on familiarity with partitioned pricing and cultural differences. An experimental design was implemented to examine South Korean and US sport consumers’ attitudes and behaviors related to ticket prices for a mega-sporting event. The findings showed all-inclusive pricing, in general, is preferred and culture does not significantly impact consumer behavior in this context. Additionally, familiarity moderated the relationship between cultural differences and consumer behavior. Consumers who were familiar with partitioned pricing were more attracted to partitioned pricing ticket offers and had higher purchase intentions compared to consumers who were less familiar with the practice. Implications of these findings are discussed along with directions for future research.

E-kereskedelem: szállítási díjjal vagy anélkül? = E-commerce: with or without shipping fee?

A tanulmány az ingyenes házhozszállítás és a szállítási díjjal való árazás stratégiáját vizsgálja. Egy termék vásárlásakor házhozszállítás esetén felmerül a kérdés, hogy a termék árában benne kell lennie a szállítási díjnak vagy a kettőt szét kell választani, és a termék ára mellett külön meg kell jelennie annak? A probléma elemzéséhez Kelemen [2017b] modelljét alkalmazzuk, amit kiegészítünk a szállítási díjat kifogásoló fogyasztókkal. Egy olyan modellbe helyezzük az elemzést, ami a térbeliséget mélyrehatóbban veszi figyelembe a piac méretén, a szállítási díjon és az utazási költségen keresztül. A szállítási díjjal való árazás magasabb profitot eredményez, azonban ehhez a piacot jól kell ismerni. This paper studies the free shipping and partitioned pricing strategy (product price with shipping fee). If a product is ordered for delivery, it is not straightforward that the price should consist of the shipping fee or the product price and shipping fee should be separated. We extend the model of Kelemen [2017b] with shipping charge skepticism. In this framework, we can investigate the spatial properties in more detail through the size of the market, the shipping fee and the transportation cost. As a result of that, the partitioned pricing ensures higher profit, but it requires the knowledge of key characteristics of the market.

The Effect of Partitioned Ticket Prices on Sport Consumer Perceptions and Enduring Attitudes

The efficacy of partitioned pricing (PP) has been investigated in a range of industries. This work showed that the usefulness of PP is situational, with numerous contextual factors playing important roles. Ticket pricing scholarship has yet to devote adequate attention to PP as a focal variable, which is problematic given the industry’s reliance on ticket revenue and the “service” fees ubiquitous in the ticketing industry. In addition, there is a need to investigate the moderating factors unique to sport consumption, such as team identification and the entertainment value of live sport. Using a sample of 403 sport consumers, this study found that PP is associated with lower perceptions of fairness but not lower enduring attitudes about the platform. Thus, sport consumers are displeased by PP, but not enough to dissuade them from future purchases. The analysis found that team identification—the entertainment value of live sports entertainment value—can further offset negative perceptions of PP.

The moderating effect of temporal distance on partitioned vs combined pricing

Purpose This paper aims to explore how temporal distance influences the evaluation of partitioned pricing. Design/methodology/approach The effect of temporal distance on the effectiveness of partitioned pricing is tested using data collected through experiments in the USA. Findings Study 1 reveals that people perceive partitioned pricing as more attractive than combined pricing, but only for a distant event. Study 2 reveals that individuals predisposed to global information processing perceive partitioned pricing as more attractive than combined pricing. However, for individuals who commonly engage in local processing, combined pricing was equally attractive as partitioned pricing. In Study 3, the authors examine a boundary condition and find that the joint effect of temporal distance and partitioned pricing is attenuated when the purchase is made for a gift in which consumers are assumed to pay less attention to a surcharge. In Study 4, the authors examine how partitioned pricing influences a consumer’s choice in terms of temporal distance. Practical implications The findings provide practical guidelines to business leaders looking for practical guidelines for pricing policy decisions. Originality/value Previous research shows that partitioned pricing is more effective in increasing consumers’ purchase intention and demand than combined pricing. In the present research, the authors introduce temporal distance as an important moderator that affects the effectiveness of partitioned pricing.

The Influence of Framing Effects on Consumer Decision-Making on Online Platforms

Focusing on online electronics sales and online travel service customization, the present research employed two experiments to examine the framing effects on consumer decision making in the context of internet marketing. Study1 showed that combined (vs. partitioned) pricing strategy can promote consumers’ purchase intention on e-commerce platforms. Study 2 demonstrated that downgrade (vs. upgrade) framing approach can lead to higher total sum price and less change on the default package in travel package customization settings. The results have significantly implications for marketing management in the context of internet marketing.