Does demand fall when customers perceive that prices are unfair? The case of premium pricing for large sizes

被引:62
作者
Anderson, Eric T. [1 ]
Simester, Duncan I. [2 ]
机构
[1] NW Univ, Kellogg Sch Management, Evanston, IL 60208 USA
[2] MIT, Alfred P Sloan Sch Management, Cambridge, MA 02142 USA
关键词
product line pricing; price discrimination; fairness; price promotion; experimental economics;
D O I
10.1287/mksc.1070.0323
中图分类号
F [经济];
学科分类号
02 ;
摘要
We analyze a large-scale field test conducted with a mail-order catalog firm to investigate how customers react to premium prices for larger sizes of women's apparel. We find that customers who demand large sizes react unfavorably to paying a higher price than customers for small sizes. Further investigation suggests that these consumers perceive that the price premium is unfair. Overall, premium pricing led to a 6% to 8% decrease in gross profits.
引用
收藏
页码:492 / 500
页数:9
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