How price complexity takes its toll: The neglected role of a simplicity bias and fairness in price evaluations

Homburg, Christian ; Totzek, Dirk ; Krämer, Melanie

Document Type: Article
Year of publication: 2014
The title of a journal, publication series: Journal of Business Research : JBR
Volume: 67
Issue number: 6
Page range: 1114-1122
Place of publication: New York, NY
Publishing house: Elsevier
ISSN: 0148-2963
Publication language: English
Institution: Business School > Business-to-Business Marketing, Sales & Pricing (Homburg 1998-)
Subject: 650 Management
Abstract: Marketing managers commonly employ complex price plans. Surprisingly, limited and conflicting evidence reports how customers perceive and react to complex prices. This study examines perceptions about price complexity and shows that customers tend to prefer simple prices. Two experimental studies show that perceived price complexity negatively affects customer perceptions of price fairness and influences product choice because customers negatively evaluate the transparency of the firm's pricing practices and infer higher total prices. Customers comparing alternate offerings may therefore prefer simple over complex prices, even when the latter are less expensive. Study results suggest limiting price plan variations positively affects customer inferences about transparency and fairness, and thus customer choice.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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