Consumer preference for pay-per-use service tariffs: the roles of mental accounting
- Authors
- Yun, Sejeong; Suk, Kwanho
- Issue Date
- 9월-2022
- Publisher
- SPRINGER
- Keywords
- Pricing; Pay-per-use; Framing; Reference point; Mental accounting
- Citation
- JOURNAL OF THE ACADEMY OF MARKETING SCIENCE, v.50, no.5, pp.1111 - 1124
- Indexed
- SSCI
SCOPUS
- Journal Title
- JOURNAL OF THE ACADEMY OF MARKETING SCIENCE
- Volume
- 50
- Number
- 5
- Start Page
- 1111
- End Page
- 1124
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/143985
- DOI
- 10.1007/s11747-022-00853-y
- ISSN
- 0092-0703
- Abstract
- When consumers purchase service plans, they often fail to choose the lowest cost alternative because of their general tendency to avoid pay-per-use pricing. The present research examines the role of psychological process in consumer' preference for price plans, focusing on the reasons for lower preference for pay-per-use plans. In addition, this research proposes a novel method to increase the preference for pay-per-use pricing by simply reframing it as a price plan with an initial allowance and gains and losses from the allowance. The results of seven studies demonstrate that the reframed pay-per-use plan is preferred to the regular pay-per-use plan, although the actual costs are the same. The increased preference for the reframed pay-per-use is caused by the change in the salient reference point that influences the perceived gain and loss of the price plan.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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