How self-construal guides preference for partitioned versus combined pricing

Abstract

Marketers often offer equivalent pricing options by charging a base price and surcharges (partitioned pricing), or alternately offering a single price (combined pricing). The current study examines the systematic impact of a person's activated self-construal on the evaluation of product offers made under these alternate pricing frames. Findings from three experiments show that individuals with independent self-construal lean towards global processing and exhibit higher attractiveness and purchase intention for a product offered under partitioned (versus combined) pricing. Furthermore, moderated mediation results show that the interaction effects of self-construal and pricing type on attractiveness and purchase intention are mediated by less effortful processing of pricing information. These results contribute to the pricing and self-construal literature. The results of this study may also help managers develop appropriate pricing strategies targeting different consumer segments.