The Zero-Price Effect in a Multicomponent Product Context

International Journal of Research in Marketing

Posted: 28 Jan 2016 Last revised: 1 Feb 2016

See all articles by Elisa Konya-Baumbach

Elisa Konya-Baumbach

University of Mannheim - Department of Marketing

Date Written: January 27, 2016

Abstract

This study replicates and extends prior research from single product contexts and multicomponent product contexts on the zero-price effect, i.e., an overproportional increase in demand when formerly priced products are offered for free. The results reconfirm that the zero-price effect is based on consumers’ emotional responses to the price of zero. The increased positive affect does translate into the zero-price effect in a high-price multicomponent product context but not in a high-price single product context. Interestingly, additional information on the price ratio of the offered products nullifies the zero-price effect in the high-price multicomponent product context.

Keywords: zero-price effect, price affect, bundle, behavioral pricing, emotions, price

JEL Classification: M31

Suggested Citation

Konya-Baumbach, Elisa, The Zero-Price Effect in a Multicomponent Product Context (January 27, 2016). International Journal of Research in Marketing, Available at SSRN: https://ssrn.com/abstract=2723425

Elisa Konya-Baumbach (Contact Author)

University of Mannheim - Department of Marketing ( email )

L5, 1
Mannheim, 68131
Germany

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