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Erschienen in: Journal of the Academy of Marketing Science 5/2022

07.04.2022 | Original Empirical Research

Consumer preference for pay-per-use service tariffs: the roles of mental accounting

verfasst von: Sejeong Yun, Kwanho Suk

Erschienen in: Journal of the Academy of Marketing Science | Ausgabe 5/2022

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Abstract

When consumers purchase service plans, they often fail to choose the lowest cost alternative because of their general tendency to avoid pay-per-use pricing. The present research examines the role of psychological process in consumer’ preference for price plans, focusing on the reasons for lower preference for pay-per-use plans. In addition, this research proposes a novel method to increase the preference for pay-per-use pricing by simply reframing it as a price plan with an initial allowance and gains and losses from the allowance. The results of seven studies demonstrate that the reframed pay-per-use plan is preferred to the regular pay-per-use plan, although the actual costs are the same. The increased preference for the reframed pay-per-use is caused by the change in the salient reference point that influences the perceived gain and loss of the price plan.

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Fußnoten
1
Usage below the allowance is more likely to occur because consumers tend to prefer the allowance that is higher than the actual usage volume (Kridel et al., 1993; Lambrecht & Skiera, 2006). This assumption is tested in Study 6.
 
2
Our reasoning on this difference is empirically supported in Study 4.
 
3
The price of the flat-rate plan was set to 150% of the allowance of the reframed-pay-per-use plan (i.e., $20) based on the general preference for flat-rate plans.
 
4
We also compared the participants’ choice of the pay-per-use plan when the alternative option was a flat-rate plan (i.e., choice sets 2 and 3). The proportion of the participants choosing the pay-per-use plan was significantly higher for the reframed presentation than for the regular presentation (47.6% vs. 32.9%; z = 1.93, p = .054).
 
5
One outlier whose usage estimate (30 movies) was beyond three standard deviations from the average was removed from all the analyses.
 
6
A post-hoc explanation about the non-significant difference in the 1 GB usage condition is that because usage is too close to zero, the zero-usage volume may serve as a salient reference point in both the regular and reframed pay-per-use conditions.
 
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Metadaten
Titel
Consumer preference for pay-per-use service tariffs: the roles of mental accounting
verfasst von
Sejeong Yun
Kwanho Suk
Publikationsdatum
07.04.2022
Verlag
Springer US
Erschienen in
Journal of the Academy of Marketing Science / Ausgabe 5/2022
Print ISSN: 0092-0703
Elektronische ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-022-00853-y

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