Abstract

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The Price Does Not Include Additional Taxes, Fees, and Surcharges: A Review of Research on Partitioned Pricing


Vicki Morwitz


New York University (NYU) - Department of Marketing

Eric Greenleaf


New York University (NYU) - Department of Marketing

Edith Shalev


New York University (NYU)

Eric J. Johnson


Columbia Business School - Marketing

October 19, 2013


Abstract:     
An important pricing decision that many firms face is whether to use a partitioned price, which divides a product’s price into two or more parts, or to charge one combined, all-inclusive price. In recent years, partitioned pricing strategies in the marketplace have become more pervasive and complex. Several constituencies, including marketing managers, public policy makers and regulators, and consumer researchers, have shown increased interest in partitioned pricing. This paper reviews the academic literature on partitioned pricing and proposes an organizing framework for this work, with the goal of helping these constituencies better understand partitioned pricing and use research results to achieve their different objectives. After discussing and organizing the academic literature, we propose an agenda for future research in the area of partitioned pricing, focusing on those questions which we feel will be of most use to these three constituencies.

Number of Pages in PDF File: 50

Keywords: partitioned pricing, fees, surcharges, taxes, shipping and handling

JEL Classification: C91, C93, D18, D40, D44, D60, D83, E21, H20, K41, M31, M37

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Date posted: February 26, 2009 ; Last revised: January 29, 2014

Suggested Citation

Morwitz, Vicki and Greenleaf, Eric and Shalev, Edith and Johnson, Eric J., The Price Does Not Include Additional Taxes, Fees, and Surcharges: A Review of Research on Partitioned Pricing (October 19, 2013). Available at SSRN: http://ssrn.com/abstract=1350004 or http://dx.doi.org/10.2139/ssrn.1350004

Contact Information

Vicki Morwitz (Contact Author)
New York University (NYU) - Department of Marketing ( email )
Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States
Eric Greenleaf
New York University (NYU) - Department of Marketing ( email )
Henry Kaufman Ctr
44 W 4 St.
New York, NY
United States
Edith Shalev
New York University (NYU) ( email )
Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States
Eric J. Johnson
Columbia Business School - Marketing ( email )
New York, NY 10027
United States

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