Something old, something new : the role of partitioned pricing in consumers’ preference for new versus used products
Purpose: This research aims to represent an initial exploration of how partitioned pricing influences consumers’ purchase decisions of new versus used products from the theoretical perspectives of prospect theory and gain/loss decision frames. Design/methodology/approach: Four experiments to test the hypotheses with multiple product categories have been conducted. Findings: Results from a series of experimental studies find that consumers prefer partitioned pricing over all-inclusive pricing for new products, whereas all-inclusive pricing is more preferred for used products. In addition, the authors demonstrate that a high-quality brand can reverse this effect for used products; specifically, consumers prefer partitioned pricing over all-inclusive pricing for a used product with a high-quality brand. Originality/value: This research contributes to the literature on second-hand consumption by examining the impact of pricing strategies on consumer purchase decisions of new versus used products. This study deepens our understanding of consumer decision-making for new versus used products and it provides implications for bolstering sustainable consumption.
Year of publication: |
2018
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Authors: | Crosno, Jody L. ; Cui, Annie Peng |
Published in: |
Journal of Consumer Marketing. - Emerald, ISSN 0736-3761, ZDB-ID 2032361-X. - Vol. 35.2018, 4 (11.06.), p. 353-365
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Publisher: |
Emerald |
Saved in:
Online Resource
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