If you need an accessible version of this item please contact JSTOR User Support

Divide and Prosper: Consumers' Reactions to Partitioned Prices

Vicki G. Morwitz, Eric A. Greenleaf and Eric J. Johnson
Journal of Marketing Research
Vol. 35, No. 4 (Nov., 1998), pp. 453-463
DOI: 10.2307/3152164
Stable URL: http://www.jstor.org/stable/3152164
Page Count: 11
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Divide and Prosper: Consumers' Reactions to Partitioned Prices
Preview not available

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.

Page Thumbnails

  • Thumbnail: Page 
453
    453
  • Thumbnail: Page 
454
    454
  • Thumbnail: Page 
455
    455
  • Thumbnail: Page 
456
    456
  • Thumbnail: Page 
457
    457
  • Thumbnail: Page 
458
    458
  • Thumbnail: Page 
459
    459
  • Thumbnail: Page 
460
    460
  • Thumbnail: Page 
461
    461
  • Thumbnail: Page 
462
    462
  • Thumbnail: Page 
463
    463