Should Marketers Use Price Partitioning Or Total Prices?

Silke Bambauer, University of Augsburg, Germany
Heribert Gierl, University of Augsburg, Germany
Price partitioning means the division of a product’s price into several components, provided that the components cannot be bought separately. Only some authors have analyzed the effects of price partitioning. They provide opposed recommendations on the question whether price partitioning is more advantageous than using total prices. In this paper we develop a theoretical background to explain the effects of price partitioning in more detail than it has been done in previous studies. Furthermore we present the results of a new empirical study according to which price partitioning leads to a less favorable product evaluation than does using total prices.
[ to cite ]:
Silke Bambauer and Heribert Gierl (2008) ,"Should Marketers Use Price Partitioning Or Total Prices?", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 262-268.