Price structure as a marketing variable: An experimental investigation

This study examines the relative impact on preferences of price level and price-structure variables. A pair of four-factor experimental designs were developed to investigate the preferences of students for automobile price structures and recent homebuyers for various price arrangements in buying a house. The findings indicate that, for a majority of the subjects, the structural variables of down payment, interest rate, and monthly payment are more important than price level in determining overall preferences.