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The moderating effect of temporal distance on partitioned vs combined pricing

Jungsil Choi (Department of Marketing, Monte Ahuja College of Business, Cleveland State University, Cleveland, Ohio, USA)
Dorcia E. Bolton (Department of Business Administration, College of Business, Auburn University at Montgomery, Montgomery, Alabama, USA)
Marija Grishin (Department of Marketing, University College Dublin, Dublin, Ireland)

Journal of Consumer Marketing

ISSN: 0736-3761

Article publication date: 12 August 2019

Abstract

Purpose

This paper aims to explore how temporal distance influences the evaluation of partitioned pricing.

Design/methodology/approach

The effect of temporal distance on the effectiveness of partitioned pricing is tested using data collected through experiments in the USA.

Findings

Study 1 reveals that people perceive partitioned pricing as more attractive than combined pricing, but only for a distant event. Study 2 reveals that individuals predisposed to global information processing perceive partitioned pricing as more attractive than combined pricing. However, for individuals who commonly engage in local processing, combined pricing was equally attractive as partitioned pricing. In Study 3, the authors examine a boundary condition and find that the joint effect of temporal distance and partitioned pricing is attenuated when the purchase is made for a gift in which consumers are assumed to pay less attention to a surcharge. In Study 4, the authors examine how partitioned pricing influences a consumer’s choice in terms of temporal distance.

Practical implications

The findings provide practical guidelines to business leaders looking for practical guidelines for pricing policy decisions.

Originality/value

Previous research shows that partitioned pricing is more effective in increasing consumers’ purchase intention and demand than combined pricing. In the present research, the authors introduce temporal distance as an important moderator that affects the effectiveness of partitioned pricing.

Keywords

Citation

Choi, J., Bolton, D.E. and Grishin, M. (2019), "The moderating effect of temporal distance on partitioned vs combined pricing", Journal of Consumer Marketing, Vol. 36 No. 5, pp. 529-538. https://doi.org/10.1108/JCM-06-2017-2243

Publisher

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Emerald Publishing Limited

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