Partitioned pricing,price fairness perceptions,and the moderating effects of brand relationships in SME business markets |
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| Institution: | 1. School of Business, Virginia Commonwealth University, PO Box 844000, Richmond, VA 23284, United States;2. Center for Business and Industrial Marketing, J. Mack Robinson College of Business, Georgia State University, United States.;1. Duesseldorf Institute for Competition Economics (DICE), University of Duesseldorf, 40225 Duesseldorf, Germany;2. Leibniz Centre for European Economic Research (ZEW), 68161 Mannheim, Germany;3. TWS Partners AG, 80538 Munich, Germany;4. Department of Economics, University of Sheffield, Sheffield S1 4DT, United Kingdom;1. College of Business, Florida Atlantic University, 777 Glades Road, Boca Raton, FL 33431, USA;2. Durham University Business School, Durham DH1 3LB, UK;3. Department of Marketing, University of Miami, P.O. Box 248147, Coral Gables, FL 33124, USA;1. Morrison Chair of Agribusiness, Morrison School of Agribusiness, W.P. Carey, School of Business, Arizona State University, Mesa, AZ 85212, United States;2. Charles H. Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY, United States |
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| Abstract: | Partitioned pricing effects on price perceptions have been studied in the consumer (B2C) market context, but not in the business (B2B) market, and particularly not in the small- and medium-sized enterprise (SME), context. The current research investigates SME managers' affective and cognitive (e.g., price fairness perceptions) responses to partitioned pricing and extent of relationship with the selling brand. The first of three experimental studies finds that a partitioned price generates greater price fairness perceptions than an all-inclusive price. Study 2 finds that SME buyers elicit the greatest positive affect and the lowest negative affect when the buyer's firm has an established relationship with the brand and the seller partitions the price. The third study further examines the effects of relationship with the brand by separating brand mandate (i.e., when the buying firm requires employees to purchase from a specific brand) and relationship longevity. |
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