Business Commons^™

Partitioned Pricing: Can We Always Divide And Prosper?, Bidisha Burman

LSU Doctoral Dissertations

Research on partitioned pricing suggests that separating the surcharges from the base price of the advertised product may lead to a more favorable effect on consumers' evaluation of the offer compared to a combined presentation of the base price and the surcharge. In this dissertation we propose that partitioned price presentation may not always result in positive outcomes vis-à-vis combined presentation of prices. We propose that consumers' need for cognition and the perceived reasonableness of the surcharge are likely to influence their evaluation of partitioned versus combined prices. Based on cue diagnosticity, Persuasion Knowledge Model, and Characterization-Correction Model we develop …