Surcharges and Seller Reputation
University of Virginia (UVA), McIntire School of Commerce
Journal of Consumer Research, Vol. 35, No. 1, 2008
We propose that consumers buying from low- (vs. high-) reputation sellers pay greater attention to surcharges. Thus, reputation moderates the effect of surcharges on purchase. Data from eBay show that consumers adjust bids to account for surcharges when buying from low-reputation sellers but not when buying from high-reputation sellers (study 1). Study 2 replicates this effect with partitioned versus consolidated prices. Study 3 reveals that consumers take longer to make purchasing decisions when buying from low-reputation sellers and that response times mediate the moderating role of reputation. Furthermore, the effect of surcharges levied by low-reputation sellers is attenuated for consumers with low (vs. high) need for cognition (study 4).
Number of Pages in PDF File: 34
Keywords: surcharge, price partitions, trust, reputation
JEL Classification: C91, C93, M30, M31Accepted Paper Series
Date posted: May 12, 2008
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