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Regulatory focus as a predictor of attitudes toward partitioned and combined pricing
Author(s) -
Lee Kiljae,
Choi Jungsil,
Li Yexin Jessica
Publication year - 2014
Publication title -
journal of consumer psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.433
H-Index - 110
eISSN - 1532-7663
pISSN - 1057-7408
DOI - 10.1016/j.jcps.2014.01.001
Subject(s) - regulatory focus theory , attractiveness , promotion (chess) , focus (optics) , pricing strategies , marketing , business , microeconomics , economics , psychology , social psychology , political science , physics , optics , politics , psychoanalysis , law , creativity
Partitioned pricing is a widely used pricing strategy, but little is known about the buyer characteristics that influence its effectiveness. The current research contributes to the pricing literature by investigating the impact of regulatory focus on the perceived attractiveness of partitioned and combined pricing. In four studies, we hypothesized and found support for the idea that promotion focused individuals perceive partitioned prices to be more attractive than combined prices, while prevention focused individuals do not differentiate between the two pricing types. Our results also show that regulatory focus influences consumers' information processing style, which in turn leads to important differences in attitudes towards partitioned and combined pricing. Specifically, promotion focused consumers are more likely to engage in global processing and global processing is linked to preferences for partitioned (versus combined) prices.