In drip pricing, companies advertise low prices for products or services and then tack on additional surcharges later in the purchase process. This tactic has not only become…
Abstract
Purpose
In drip pricing, companies advertise low prices for products or services and then tack on additional surcharges later in the purchase process. This tactic has not only become popular for airlines but also for other online services, such as retailers and telecommunication companies. Despite the widespread use of drip pricing in the marketplace, little is known about its effects on consumer behavior. The purpose of this paper is to compare the effects of drip pricing with those of price partitioning. Specifically, it elaborates on perceived value, perceived deception, purchase intentions, and the moderating effect of price consciousness.
Design/methodology/approach
The paper develops a conceptual framework and tests four hypotheses with an experimental study on a purchase decision for a continental flight booked through an online travel agent. The experiment is based on a between-subjects design with two groups (n=130). The data are analyzed with multivariate statistics and structural equation modeling.
Findings
The findings reveal that drip pricing for service offerings leads to inferior results compared with partitioned pricing in terms of perceived value, perceived deception, and, ultimately, purchase intentions. The findings also indicate that the effects differ depending on the customer’s price consciousness.
Originality/value
The study draws from previous studies on partitioned pricing and replicates their findings. However, it is one of the first studies to elaborate on moderators and mediators of the consequences of drip pricing in a service context.
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Thomas Robbert and Stefan Roth
The purpose of this paper is to elaborate on the differences between price partitioning and drip pricing with regard to their influence on price recall, purchase intentions and…
Abstract
Purpose
The purpose of this paper is to elaborate on the differences between price partitioning and drip pricing with regard to their influence on price recall, purchase intentions and fairness perceptions. In many industries, sellers advertise low prices and reveal other surcharges sequentially as the customer goes through the buying process. To date, little is known about how these sequential, or drip-pricing, techniques influence consumer behavior.
Design/methodology/approach
The study is based on an experimental between-subjects design (N = 95) with two groups. The data collection was conducted with a mixed scenario/stimuli-based online survey for a virtual travel agent.
Findings
The findings reveal that underestimation of the total price of an offering is significantly weaker when prices are presented sequentially rather than partitioned. In addition to reduced purchase intentions, drip pricing may negatively affect fairness perceptions when consumers feel deceived by the seller.
Originality/value
The study replicates findings of previous research on price partitioning but is one of the first empirical studies to examine the influence of sequence in price presentations. With this focus, the study opens up new avenues for pricing research.
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Oscar Bloem, Erik Bulten and Robbert-Jan Verkes
Low levels of subjective wellbeing in prisoners may relate to mental health problems and difficulties in reintegration after imprisonment. The development of subjective wellbeing…
Abstract
Purpose
Low levels of subjective wellbeing in prisoners may relate to mental health problems and difficulties in reintegration after imprisonment. The development of subjective wellbeing during imprisonment is mostly unclear. The purpose of this paper is to explore this development in a longitudinal study in association with mental disorders and socioeconomic factors.
Design/methodology/approach
Subjective wellbeing was assessed via a visual analogue scale and retrieved at admission to remand prison and then again after four and eight weeks. Changes in subjective wellbeing between time-points were analyzed taking into account mental disorders and socioeconomic factors, which were assessed by use of the Mini International Neuropsychiatric Interview – Plus and the Camberwell Assessment of Need – Forensic Version, respectively.
Findings
On average, subjective wellbeing declined directly after remand prison admission, but differences between individuals were found. At remand prison admission, subjective wellbeing significantly improved rather than declined in prisoners with alcohol and substance use disorders, housing problems, unemployment prior to incarceration and in relatively older prisoners. Other related factors did not add significance to this model. In contrast, during remand imprisonment subjective wellbeing displayed an overall increase. For this increase, no predicting factors were found. However, prisoners with an antisocial personality disorder are more at risk of experiencing a decrease in wellbeing during remand imprisonment.
Originality/value
In general, the Dutch prison system appears not to result in a decrease in subjective wellbeing in prisoners suffering from a mental disorder during remand imprisonment.
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Robbert A. Fisher and Bill Tuck
Provides an introduction to some of the current work being done on electronic document delivery services within the European Libraries Programme and relates this to other national…
Abstract
Provides an introduction to some of the current work being done on electronic document delivery services within the European Libraries Programme and relates this to other national initiatives. Seeks to draw up a list of issues that must be addressed as the area develops and, in particular, to outline the considerations that must be given to initiatives within the next phase of the Framework Programme.
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This chapter investigates the theoretical support for the distance metaphor that is widely used to capture the effects of institutional diversity in international business (IB…
Abstract
This chapter investigates the theoretical support for the distance metaphor that is widely used to capture the effects of institutional diversity in international business (IB) and management studies. It argues that neither new institutional economics (NIE) nor in neo-institutional sociology (NIS) offers support for a focus on the degree of dissimilarity. Rather, both literatures emphasize dis-commonality as a problem for cooperation. In the NIE argument, common enforcement mechanisms are needed to reduce transaction costs. In the NIS argument, effective communication and cooperation is limited to meaning-giving structures common to all parties. In neither perspective, the degree of difference in structures that are not common is relevant. We propose an alternative metaphor, institutional overlap, to capture the effects of institutional diversity on IB transactions. We argue that such a concept differs from institutional distance in being agency-centered, sensitive to intra-country variation, non-additive, and driving the thickness rather than the costs of transactions.
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The paper aims to examine literature on the issues of the pilot shortage in the United States Air Force and the demographic diversity dilemma within the United States Air Force…
Abstract
Purpose
The paper aims to examine literature on the issues of the pilot shortage in the United States Air Force and the demographic diversity dilemma within the United States Air Force pilot community and how it relates to the National Defense Strategy. In addition, there is an examination of current initiatives designed to combat these issues.
Design/methodology/approach
The paper opted for an exploratory review of 90 sources from 2012 to 2023 to examine the pilot shortage and pilot diversity issues within the United States Air Force. Three theories, the theory of generative interactions, the theory of cognitive diversity and the identity theory, were examined in relation to the barriers to the pilot diversity issue.
Findings
The paper provides emergent insights from the literature into the growing pilot shortage and diversity disparity found within the United States Air Force pilot community. These issues were associated with many barriers, including geographic disparity, socioeconomic status, culture, education, mentorship and life balance.
Research limitations/implications
The current initiatives examined are new and, as such, warrant future research. In particular, what are the long-term projections for the youth flight programs? An examination of the effectiveness of improving the pilot shortage and pilot diversity within the Air Force should be further scrutinized in the coming years as new cadets enter pilot training after accession.
Originality/value
This paper highlights a need to further study the effectiveness of youth flight programs and other United States Air Force initiatives in improving pilot numbers and diversity.
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Joseph Press, Paola Bellis, Tommaso Buganza, Silvia Magnanini, Abraham B. (Rami) Shani, Daniel Trabucchi, Roberto Verganti and Federico P. Zasa