Something old, something new: the role of partitioned pricing in consumers' preference for new versus used products

摘要

Purpose - This research aims to represent an initial exploration of how partitioned pricing influences consumers' purchase decisions of new versus used products from the theoretical perspectives of prospect theory and gain/loss decision frames. Design/methodology/approach - Four experiments to test the hypotheses with multiple product categories have been conducted. Findings - Results from a series of experimental studies find that consumers prefer partitioned pricing over all-inclusive pricing for new products, whereas all-inclusive pricing is more preferred for used products. In addition, the authors demonstrate that a high-quality brand can reverse this effect for used products; specifically, consumers prefer partitioned pricing over all-inclusive pricing for a used product with a high-quality brand. Originality/value - This research contributes to the literature on second-hand consumption by examining the impact of pricing strategies on consumer purchase decisions of new versus used products. This study deepens our understanding of consumer decision-making for new versus used products and it provides implications for bolstering sustainable consumption.