Evaluating multidimensional prices

Abstract

The price at which a product is offered often does not consist of a single item of information, for example VW Golf, price; DM25,476. Instead, a multidimensional pricing system is used, e.g. the price comprises a down payment, monthly installments and a repayment period in months. Despite the considerable significance of offers of this type for marketing policy, no information is presently available to describe how a consumer integrates the individual price dimensions (e.g. down payment, monthly installments and number of repayment periods) to form a global judgment. This article derives hypotheses to explain the formation of a price judgment about multidimensional prices. Then, an empirical study designed to verify the formulated hypotheses is described. Finally, this article discusses the implications of the results of the study.

Citation

Herrmann, A. and Wricke, M. (1998), "Evaluating multidimensional prices", Journal of Product & Brand Management, Vol. 7 No. 2, pp. 161-169. https://doi.org/10.1108/10610429810216973