Buying Daily Pleasure With Daily Payments: Narrow Framing Favors Scope Insensitive Accounts

We propose and find that "pennies-a-day" pricing is not limited to small expenses, but instead increases willingness to purchase whenever consumers are less sensitive to marginal increases in benefits than to marginal increases in costs. We present results from a series of experiments test...

Full description

Saved in:
Bibliographic Details
Main Authors: Atlas, Stephen A, Bartels, Daniel
Format: Conference Proceeding
Language:English
Subjects:
Consumer behavior
Marginal costs
Pricing policies
Studies
Willingness to pay
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We propose and find that "pennies-a-day" pricing is not limited to small expenses, but instead increases willingness to purchase whenever consumers are less sensitive to marginal increases in benefits than to marginal increases in costs. We present results from a series of experiments testing the implications of this framework.
ISSN:0098-9258