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JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Price Surcharge and the Effects of Construal Level
Author(s): Pia A. Albinsson, Bidisha Burman, Neel Das
Citation: Pia A. Albinsson, Bidisha Burman, Neel Das, (2010) "Price Surcharge and the Effects of Construal Level," Journal of Applied Business and Economics, Vol. 11, Iss. 4, pp. 56 - 69
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The growth of ecommerce has increased the importance of providing efficient pricing information in
online offerings. We examine consumers’ inherent construal level to understand effectiveness of
partitioned versus combined online pricing strategies. In two studies we investigate a scenario where an
individual’s construal level moderates the effectiveness of the pricing format (partitioned versus
combined) on perceived value and purchase intention. Building on prior partitioned pricing research our
first study uses a reasonable surcharge amount and our second study uses an unreasonable surcharge
amount. Our results provide evidence that consumers evaluate online product offerings differently
depending on their inherent construal level.
