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Partitioned pricing: Can we always divide and prosper?

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Title: Partitioned pricing: Can we always divide and prosper?
Authors: Burman, Bidisha, Biswas, Abhijit
Source: Journal of Retailing. Dec2007, Vol. 83 Issue 4, p423-436. 14p.
Subjects: Business enterprises, Financial management, Surcharges, Cognition, Pricing
Abstract: The widespread use of partitioned pricing by marketers may be the result of perceptions that it enhances the perceived value of the offer. This research identifies boundary conditions for the effectiveness of partitioned pricing by examining the role of the reasonableness of a surcharge and the need for cognition in consumers’ processing of pricing information. Three studies, each consisting of two experiments, examine the effectiveness of partitioned versus combined pricing and show that for high need for cognition persons, partitioned pricing has a more favorable effect than combined pricing when the surcharges are reasonable; these effects reverse when the surcharges are unreasonable. The studies indicate no differences between partitioned and combined pricing across surcharge conditions for low need for cognition consumers. A fourth study incorporating both reasonable and unreasonable surcharges in one experiment substantiates the conclusions of the first three studies. Finally, detailed process measures provide evidence that high versus low need for cognition persons evaluate partitioned pricing information differently in distinct surcharge conditions. [Copyright &y& Elsevier]
Copyright of Journal of Retailing is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Psychology and Behavioral Sciences Collection
FullText Text:
  Availability: 0
Header DbId: pbh
DbLabel: Psychology and Behavioral Sciences Collection
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AccessLevel: 6
PubType: Academic Journal
PubTypeId: academicJournal
PreciseRelevancyScore: 0
IllustrationInfo
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  Data: Partitioned pricing: Can we always divide and prosper?
– Name: Author
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  Data: <searchLink fieldCode="AR" term="%22Burman%2C+Bidisha%22">Burman, Bidisha</searchLink><br /><searchLink fieldCode="AR" term="%22Biswas%2C+Abhijit%22">Biswas, Abhijit</searchLink>
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  Data: <searchLink fieldCode="JN" term="%22Journal+of+Retailing%22">Journal of Retailing</searchLink>. Dec2007, Vol. 83 Issue 4, p423-436. 14p.
– Name: Subject
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  Data: <searchLink fieldCode="DE" term="%22Business+enterprises%22">Business enterprises</searchLink><br /><searchLink fieldCode="DE" term="%22Financial+management%22">Financial management</searchLink><br /><searchLink fieldCode="DE" term="%22Surcharges%22">Surcharges</searchLink><br /><searchLink fieldCode="DE" term="%22Cognition%22">Cognition</searchLink><br /><searchLink fieldCode="DE" term="%22Pricing%22">Pricing</searchLink>
– Name: Abstract
  Label: Abstract
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  Data: The widespread use of partitioned pricing by marketers may be the result of perceptions that it enhances the perceived value of the offer. This research identifies boundary conditions for the effectiveness of partitioned pricing by examining the role of the reasonableness of a surcharge and the need for cognition in consumers’ processing of pricing information. Three studies, each consisting of two experiments, examine the effectiveness of partitioned versus combined pricing and show that for high need for cognition persons, partitioned pricing has a more favorable effect than combined pricing when the surcharges are reasonable; these effects reverse when the surcharges are unreasonable. The studies indicate no differences between partitioned and combined pricing across surcharge conditions for low need for cognition consumers. A fourth study incorporating both reasonable and unreasonable surcharges in one experiment substantiates the conclusions of the first three studies. Finally, detailed process measures provide evidence that high versus low need for cognition persons evaluate partitioned pricing information differently in distinct surcharge conditions. [Copyright &y& Elsevier]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Retailing is the property of Elsevier B.V. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=pbh&AN=27741916
RecordInfo BibRecord:
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      – Type: doi
        Value: 10.1016/j.jretai.2007.03.007
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      – Code: eng
        Text: English
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      Pagination:
        PageCount: 14
        StartPage: 423
    Subjects:
      – SubjectFull: Business enterprises
        Type: general
      – SubjectFull: Financial management
        Type: general
      – SubjectFull: Surcharges
        Type: general
      – SubjectFull: Cognition
        Type: general
      – SubjectFull: Pricing
        Type: general
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      – TitleFull: Partitioned pricing: Can we always divide and prosper?
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            NameFull: Burman, Bidisha
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            NameFull: Biswas, Abhijit
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            – D: 01
              M: 12
              Text: Dec2007
              Type: published
              Y: 2007
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              Value: 83
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              Value: 4
          Titles:
            – TitleFull: Journal of Retailing
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