When Price Components Shift Together: Effects on Customer Perceptions and Sales in Access-based Services
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Keywords

Access-based Services
Partitioned Pricing
Pricing
Service Pricing
Simultaneous Price Adjustments

Abstract

Providers of access-based services frequently adopt partitioned pricing models to differentiate price components for customers, such as fixed and variable fees. In practice, service providers tend to adjust price components levels simultaneously with the goal of increasing profitability while maintaining favourable customer perceptions. However, literature examining the consequences of simultaneous changes of price components in partitioned pricing models is scant. Against this background, this paper analyses consequences of simultaneous adjustments in price components in the car-sharing sector, and evaluates the impact by utilizing survey and behavioural data. Our results indicate that customer perceptions can be negatively affected, even when customers objectively receive better value for money (e. g., longer rental durations for a lower price), because adjustments can be perceived as complex, untransparent, and less valuable.
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