Differentiation and parity in assortment pricing

Alexander Chernev*

*Corresponding author for this work

Research output: Contribution to journalArticle

11 Scopus citations

Abstract

Are consumers more likely to purchase an item from an assortment in which options are priced at parity or from an assortment in which options vary in price? This research examines the influence of parity-pricing and differentiation-pricing strategies on consumer choice and identifies conditions in which parity pricing facilitates choice, as well as conditions in which choice is facilitated by differential pricing. In a series of three experiments, the impact of assortment pricing on choice is shown to be a function of the uncertainty associated with consumers' preferences and the consistency of these preferences with options' prices.

Original languageEnglish (US)
Pages (from-to)199-210
Number of pages12
JournalJournal of Consumer Research
Volume33
Issue number2
DOIs
StatePublished - Sep 1 2006

ASJC Scopus subject areas

  • Business and International Management
  • Anthropology
  • Arts and Humanities (miscellaneous)
  • Economics and Econometrics
  • Marketing

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