Price Framing Effects in Consumers' Choices of Customizable Product and Service Bundles
Type
conference paper
Date Issued
2015-05-27
Author(s)
Abstract
Many retailers and service providers offer consumers the opportunity to tailor products and services to their individual preferences. During the customization process of a service bundle (e.g., smartphone), consumers typically have to make a choice for each bundle component (e.g., a choice for minutes, SMS, and data). In this research, we will provide evidence that customers' satisfaction with the final bundle configuration is determined by (1) whether the choice options for the bundle components are presented and decision are made simultaneously (all at the same time) versus sequentially (once at a time) and (2) the price communication tactics used in the configuration process (aggregate bundle price vs. aggregate bundle price and segregated prices for the choice options). The experiment presented in this paper provides evidence for the psychological process involved and discusses directions for future research.
Language
English
Keywords
Customization
Price framing
Decision making
HSG Classification
contribution to scientific community
Refereed
Yes
Book title
Collaboration in Research
Publisher
European Marketing Academy (EMAC)
Start page
119
Event Title
44th European Marketing Academy (EMAC) Annual Conference
Event Location
Leuven, Belgium
Event Date
24.-27.05.2015
Subject(s)
Division(s)
Eprints ID
245046