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Marketers often combine products in bundles to increase demand. Research has shown that itemizing the prices of the individual products in the bundle raises evaluations in some situations. The purpose of this paper is to investigate how bundle size influences the effect itemizing prices have on bundle evaluation.

The authors conduct two experiments. In the first, they test the effects of price presentation formats (itemized vs consolidated) and bundle size on consumers’ evaluations of product bundles. In the second experiment, they test the proposed mechanism that itemizing the price leads to a more realistic price expectation which in turn enhances evaluation. The authors also test whether this effect is stronger for larger bundles.

In Study 1, the authors find that large, but not small, bundles are evaluated more positive when presented with itemized prices. In Study 2, mediated moderation analysis supports the prediction that price expectation mediates the effect of the price presentation × bundle size interaction on bundle evaluations. The findings show that itemizing prices results in more realistic price expectations and that this effect is stronger for larger bundles. In turn, more realistic price expectations lead to higher evaluation.

The implication of this research is that by directing attention to individual items in the bundle, consumers are better able to assess bundle benefits. More research is needed to investigate other potential explanations for the findings in Study 1. Further research should also investigate whether the findings reported here holds in other settings, with other products and with other types and size of bundles.

Managers are recommended to itemize the prices of product bundles, particularly when bundles are large.

This paper extends our knowledge about the effect itemizing the prices of individual items in a bundle has on consumer evaluation by demonstrating the moderating effect of bundle size and showing that more realistic price expectation explains these effects.

This study aims to investigate the moderating role of hedonic and utilitarian purchase motives for the presentation order effect. Although past research finds that presenting item first and price later (e.g. 70 items for $29) increases consumers’ purchase intention more than presenting the information in the opposite order (e.g. $29 for 70 items), the effect was mostly examined in a hedonic consumption context. This study examines whether the effect is applicable for hedonic purchases but is less applicable for utilitarian purchases, and why.

Seven experiments tested the moderating effect of purchase motives for the presentation order effect. Two serial mediation analyses were conducted to examine the underlying mechanism.

The “item-price” (vs “price-item”) order increases hedonic purchases, but not utilitarian purchases. Because consumers feel guilty about hedonic purchases, they engage in motivated information processing to perceive greater value from their hedonic purchase when item (benefit) information is presented first and price (cost) information is presented later. Perceiving greater value reduces guilt, which consequently increases hedonic purchases. In contrast, the order effect is not observed for utilitarian purchases that do not elicit guilt. When a price discount is offered, the order effect is reversed because actual savings justify hedonic purchases better than perceived savings resulting from motivated information processing.

When promoting hedonic products, marketers are recommended to present item information before price information, unless a price discount is offered, in which case the price should be presented first.

This research introduces a novel moderator for the presentation order effect and a novel underlying mechanism, driven by the motivation to alleviate guilt associated with hedonic purchases.

Cause-related marketing (CRM) is a sales strategy that is used to improve the success of a product by including a donation to a charitable cause in its price. While marketers can present CRM donations to consumers as either absolute amounts or percentages, the predominant practice in marketing is to use the latter. As the influence of such presentation formats is not well understood, the purpose of this paper is to systematically examine their effects while taking into account the numerical ability (numeracy) of the consumers.

In two experiments, the presentation format of the donation amounts (absolute vs percentage) were manipulated and individual differences in numeracy were measured. The product type (hedonic vs utilitarian) and sales price were varied. We found this effect for high and low price levels and for hedonic and utilitarian products.

The results of both experiments consistently supported the hypothesis presented in this paper that for people with lower numeracy, their purchase intentions were higher when absolute donation amounts were presented. We found this effect for high and low price levels and for hedonic and utilitarian products.

The present paper shows that the current practice of presenting donations in percentages is inferior to presenting donations in absolute amounts because a large number of consumers have trouble interpreting percentages appropriately. Therefore, it indicates that the default option for marketing managers should be to present donations in absolute amounts for hedonic and utilitarian products with low and high prices.

Usually price information is presented as arabic numerals and consumers’ brand selections often involve comparative judgments of product prices. One important issue concerns whether consumers process price information in a similar way to that found in numerical cognition research. Since numerical processing is a learned, primarily automatic process, whether such processing interferes with or facilitates the processing of price information is an important question. It is important because a better understanding of how people process price information has implications for how managers should establish and communicate prices. This paper reports two studies that compare the processing of price with other numerical information.

This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the increasing awareness of environmental issues and green products among consumers, there is a gap between their green attitude and purchase intentions. Previous studies show that consumers’ degree of greenness varies and that price plays an important role in their green consumption decision-making.

Two between-subject experiments with 236 participants were used to examine our hypotheses and conceptual model.

The results show that different formats of price promotion presentations influence consumers’ purchase perceptions differently. Consumers with a high degree of greenness are attracted to promotions emphasizing gain, while those with a low degree of greenness prefer promotions underlining reduced loss. In addition, medium-greenness consumers show similar reactions to both formats. Our studies further demonstrate that consumers’ perceived value mediates the moderated effects of perceived quality and perceived savings on green purchase intentions.

This research helps marketers better design price promotions, taking into account the various levels of consumers’ greenness. The focus of reduced loss or gain of the promotional programs should be targeted at consumers with different levels of greenness.

This is the first paper to examine the role of price promotion presentation formats in consumer decision-making regarding green consumption. The study provides new insights concerning how to design price promotions to enhance the green purchase intentions of consumers.

Research has shown that there are different dimensions of price knowledge. But it is still not clear what consumers can remember upon price exposure and what can be retrieved later and why. This research aims to focus on the influence of encoding conditions as well as price characteristics on later price recall or evaluation.

Two controlled experiments using student subjects were conducted. Participants' encoding objectives and relative price difference between paired products were manipulated and their influence on price recall and evaluation examined.

The research showed that there is usually a memory distortion of the original product price information upon retrieval. The degree of distortion is influenced by the characteristics of the prices as well as the focus of attention at encoding and the direction of distortion was influenced by consumers' beliefs of pricing norms.

In this research, price difference instead of individual price was manipulated so the interpretation of individual price recall accuracy is constrained. Future research should also examine under what conditions consumers apply a certain type of encoding objective and the effects of memory distortions on consumer choice behaviors.

Results suggest that, for marketers to clearly communicate the price information to consumers and ensure that consumers remember and use the price information as the marketers intended, it is important to examine the compatibility between price exposure environment and form of price information that consumers are likely to retrieve from memory.

The results shed further lights on understanding of consumer price information processing and retrieval.

While fixed price offers are quite common in the marketplace, there is limited empirical evidence that documents the effectiveness of these offers in comparison to price discounting tactics. Drawing on information processing theory we provide a conceptual framework that explains the differential impact of fixed price and price discounting tactics. The empirical study shows that consumers’ perceptions of quality and value for the product were higher when price information was presented in a fixed format (versus a discount). Furthermore, perceptions of sacrifice were higher in the discount format than the fixed price format. Overall, this study finds empirical support for the notion that fixed price formats may be more effective than price discounts.

The freemium pricing model is dominant in digital products such as mobile applications. While limited evaluation of a product such as when a consumer is under time pressure, has been found to increase consumer preference for the free version (“the zero price effect”), this paper aims to explore moderators that attenuate or reverse that effect.

Three experiments test the role of anchoring effects induced by time pressure in moderating the zero price effect.

The studies offer evidence that anchoring effects induced by time pressure can be directed to reduce preference for free versions of products. In addition, these effects are mediated by the perceived performance risk of a product and an upper boundary condition for monetary price level is found.

This research demonstrates exceptions to time pressure’s role in intensifying the zero price effect. Future research could focus on additional moderators of the effect such as the need for certainty and examine time pressure’s effect on in-app purchases.

These findings can be directly applied by marketers of digital products using a freemium pricing model who wants to use time pressure to create urgency with customers without pushing them toward the free version of a product.

This paper finds exceptions to the zero price effect where consumers exhibit a stronger preference for the paid (vs free) version of a product when under time pressure.

This paper seeks to examine how young consumers attribute and select product prices according to their presentation (i.e. format and ending).

A questionnaire, administered to a sample of children between six and 12 years of age, reveals that children's allocation of prices and children's choices depend on different price formats (i.e. non‐decimal versus decimal prices and varied price endings).

Children tend to prefer round prices and to choose a 0‐ending in the decimal portion of decimal prices. However, their preferences also depend on their position as either a salesperson or a buyer.

Research into the relationship between children and price is a relatively new field. This study uses recent works as a basis and extends the field with new insights.

The purpose of this paper is to elaborate on the differences between price partitioning and drip pricing with regard to their influence on price recall, purchase intentions and fairness perceptions. In many industries, sellers advertise low prices and reveal other surcharges sequentially as the customer goes through the buying process. To date, little is known about how these sequential, or drip-pricing, techniques influence consumer behavior.

The study is based on an experimental between-subjects design (N = 95) with two groups. The data collection was conducted with a mixed scenario/stimuli-based online survey for a virtual travel agent.

The findings reveal that underestimation of the total price of an offering is significantly weaker when prices are presented sequentially rather than partitioned. In addition to reduced purchase intentions, drip pricing may negatively affect fairness perceptions when consumers feel deceived by the seller.

The study replicates findings of previous research on price partitioning but is one of the first empirical studies to examine the influence of sequence in price presentations. With this focus, the study opens up new avenues for pricing research.