The Effect of Flat Shipping Fee and Free Shipping Threshold on Consumer Evaluations
We investigate how consumers respond to two shipping fee structures – a flat fee charge and a free shipping threshold. Building upon the reference point and fairness perceptions literature, we demonstrate that offer evaluations and choice vary systematically with the shipping fee structure employed. We demonstrate that the free shipping threshold serves as a reference point, and consumers evaluate the offer relative to it. When an alternative reference point is provided, the free shipping threshold does not play a role anymore. We also show that the free shipping threshold may act as a goal for consumers, affecting offer evaluations and choice.
Citation:
Nevena T. Koukova, Joydeep Srivastava, and Martina Steul-Fischer (2011) ,"The Effect of Flat Shipping Fee and Free Shipping Threshold on Consumer Evaluations", in E - European Advances in Consumer Research Volume 9, eds. Alan Bradshaw, Chris Hackley, and Pauline Maclaran, Duluth, MN : Association for Consumer Research, Pages: 521-522.
Authors
Nevena T. Koukova, Lehigh University, USA
Joydeep Srivastava, University of Maryland, USA
Martina Steul-Fischer, University of Erlangen-Nuremberg, Germany
Volume
E - European Advances in Consumer Research Volume 9 | 2011
Share Proceeding
Featured papers
See MoreFeatured
L3. Categorizing Engagement Behaviors from the Perspective of Customer Resources
Xianfang Zeng, University of Calgary, Canada
James Agarwal, University of Calgary, Canada
Mehdi Mourali, University of Calgary, Canada
Featured
E11. Influence of ethical beliefs and trust on purchase decisions: The moderating effect of involvement
Marija Banovic, Aarhus University
Athanasios Krystallis, Athens University of Economics and Business, Greece
Featured
C6. How Does Unsatisfied Curiosity Stir Our Craving For Food?
Chen Wang, Drexel University, USA