Not included: Taxes, Fees and Surcharges - Consumer reactions to partitioned prices in online retail

Overview

Not included: Taxes, Fees and Surcharges - Consumer reactions to partitioned prices in online retail

Partitioned pricing, which refers to the practice of diving prices into a base price and surcharges such as taxes, shipping or handling fees is increasingly popular (Greenleaf et al., 2016; Choi et al., 2019). Yet at the same time it is a practice that divides practitioners, where some online retailers partition their prices while others opt not to. Scientific insights on this issue are in its infancy (Choi et al., 2019), and little is known about how consumers differ in their responses. Building on regulatory focus (Lechner & Mathmann, 2020) and regulatory mode (Kruglanski et al., 2000; Mathmann et al., 2017) theory, the present research intents to shine light on when, for whom and why consumers react negatively to price partitioning.

References:

Choi, J., Madhavaram, S. R., & Park, H. Y. (2019). The Role of Hedonic and Utilitarian Motives on the Effectiveness of Partitioned Pricing. Journal of Retailing.

Greenleaf, E. A., Johnson, E. J., Morwitz, V. G., & Shalev, E. (2016). The price does not include additional taxes, fees, and surcharges: A review of research on partitioned pricing. Journal of Consumer Psychology, 26(1), 105-124.

Kruglanski, A. W., Thompson, E. P., Higgins, E. T., Atash, M. N., Pierro, A., Shah, J. Y., & Spiegel, S. (2000). To “do the right thing” or to “just do it”: locomotion and assessment as distinct self-regulatory imperatives. Journal of Personality and Social Psychology, 79(5), 793–815. https://doi.org/10.10371A1022-3514.79.5.793

Mathmann, F., Chylinski, M., de Ruyter, K., & Higgins, E. T. (2017). When Plentiful Platforms Pay Off: Assessment Orientation Moderates the Effect of Assortment Size on Choice Engagement and Product Valuation. Journal of Retailing, 93(2), 212–227. https://doi.org/10.1016/j.jretai.2017.02.001

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