Transparent pricing: theory, tests, and implications for marketing practice

被引:29
|
作者
Carter, Robert E. [1 ]
Curry, David J. [2 ]
机构
[1] Univ Louisville, Dept Mkt, Coll Business, Louisville, KY 40292 USA
[2] Univ Cincinnati, Coll Business, Cincinnati, OH 45221 USA
关键词
Difference aversion; Discrete-choice; Fairness; Price transparency; Cost transparency; Supply-chain; FAIRNESS;
D O I
10.1007/s11747-010-0189-2
中图分类号
F [经济];
学科分类号
02 ;
摘要
In today's retail markets, products display opaque pricing, i.e., a single number that provides no information about the allocation of the retail proceeds among agents who bring the product to market. We study transparent pricing, which is an alternative strategy in which allocation information is revealed. We differentiate transparent pricing from related marketing practices such as social marketing, cause-related marketing, and pay-what-you-want. Using controlled experiments in multiple product categories with diverse sampling frames, we find that transparent prices systematically alter consumer utility functions and stated choice behavior. Our results support explanations drawn from both neoclassical and behavioral economic theory, including inequity aversion, procedural justice, and altruism. Classical theory predicts that price transparency should have little effect on consumer behavior. However, results from behavioral economics suggest that consumers may relax "self-interest" in the face of transparent prices, leading to counter-intuitive preferences. For example, in one set of studies we observe a significant proportion of consumers selecting the more expensive of two replicates of the same product. In another study, a subset of motorists willingly pays higher gasoline taxes for the same gallon of gas, increasing the overall price per gallon. We explain this behavior via parameterized utility functions that contain both self-interested and other-interested components moderated by characteristics of the decision-maker and characteristics of the choice context.
引用
收藏
页码:759 / 774
页数:16
相关论文
共 50 条
  • [31] Bridging the marketing theory-practice gap with marketing engineering
    Lilien, GL
    Rangaswamy, A
    van Bruggen, GH
    Wierenga, B
    [J]. JOURNAL OF BUSINESS RESEARCH, 2002, 55 (02) : 111 - 121
  • [32] RELATIONAL MARKETING IN MASS MARKETING. THEORY OR ACTUAL PRACTICE?
    Wakabayashi, Jose Luis
    [J]. REVISTA BRASILEIRA DE MARKETING, 2012, 11 (01): : 148 - 161
  • [33] Contributions to marketing theory and practice from industrial marketing management
    LaPlaca, PJ
    [J]. JOURNAL OF BUSINESS RESEARCH, 1997, 38 (03) : 179 - 198
  • [34] TESTS OF SIGNIFICANCE IN THEORY AND PRACTICE
    JOHNSTONE, DJ
    [J]. STATISTICIAN, 1986, 35 (05): : 491 - 504
  • [35] Priceless time - The UHNWI's most precious possession: implications for international marketing theory and practice
    Klaus, Philipp 'Phil'
    Park, JungKun
    Tarquini-Poli, Annalisa
    [J]. INTERNATIONAL MARKETING REVIEW, 2022, 39 (02) : 335 - 351
  • [36] Implications of "market baskets," a pharmaceutical marketing practice
    Rhame, FS
    [J]. JAMA-JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION, 1999, 282 (12): : 1134 - 1134
  • [37] Heuristics revisited: implications for marketing research and practice
    Merlo, Omar
    Lukas, Bryan A.
    Whitwell, Gregory J.
    [J]. MARKETING THEORY, 2008, 8 (02) : 189 - 204
  • [38] Pricing medicines: Theory and practice, challenges and opportunities
    Gregson, N
    Sparrowhawk, K
    Mauskopf, J
    Paul, J
    [J]. NATURE REVIEWS DRUG DISCOVERY, 2005, 4 (02) : 121 - 130
  • [39] Museum pricing: challenges to theory development and practice
    Rentschler, Ruth
    Hede, Anne-Marie
    White, Tabitha
    [J]. INTERNATIONAL JOURNAL OF NONPROFIT AND VOLUNTARY SECTOR MARKETING, 2007, 12 (02)
  • [40] Pricing medicines: theory and practice, challenges and opportunities
    Nigel Gregson
    Keiron Sparrowhawk
    Josephine Mauskopf
    John Paul
    [J]. Nature Reviews Drug Discovery, 2005, 4 : 121 - 130