Repairing the damage: The effect of price knowledge and gender on auto repair price quotes

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

The authors investigate whether sellers treat consumers differently on the basis of how well informed consumers appear to be. They implement a large-scale field experiment in which callers request price quotes from automotive repair shops. The authors show that sellers alter their initial price quotes depending on whether consumers appear to be correctly informed, uninformed, or misinformed about market prices. The authors find that repair shops quote higher prices to callers who cite a higher benchmark price and that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention a benchmark price for the repair. Finally, the authors find that repair shops are more likely to offer a price concession if asked to do so by a woman than if asked by a man.

Original languageEnglish (US)
Pages (from-to)75-95
Number of pages21
JournalJournal of Marketing Research
Volume54
Issue number1
DOIs
StatePublished - Feb 2017

Keywords

  • Field experiments
  • Gender
  • Price discrimination
  • Price knowledge
  • Pricing

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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