When do consumers prefer partitioned prices? The role of mood and pricing tactic persuasion knowledge
Document Type
Article
Publication Title
Journal of Business Research
Abstract
Through three laboratory experiments and a study conducted in a natural setting, this research investigates the unexplored area of the role of mood (positive versus negative), pricing frame (partitioned versus combined), and pricing tactic persuasion knowledge (PTPK = low versus high) on product attractiveness and purchase intention. Study 1 explores a mood × frame interaction, with results showing that subjects in the positive mood report higher attractiveness and purchase intention for a product framed in partitioned (versus combined) pricing. Studies 2A and 2B find a pricing frame × PTPK interaction, and the results reveal that low PTPK subjects prefer the partitioned (versus combined) pricing offer. This effect is found to be mediated by ease-of-processing. Finally, a study conducted in a natural setting enhances the external validity of the mood based findings. The observed results advance pricing theory and provide much-needed insights for managers.
Publication Date
20-5-2020
Publisher
Elsevier
Volume
Vol.116
Recommended Citation
Das, Gopal; Roy, Rajat; and Naidoo, Vik, "When do consumers prefer partitioned prices? The role of mood and pricing tactic persuasion knowledge" (2020). Faculty Publications. 340.
https://research.iimb.ac.in/fac_pubs/340
