Morwitz, Greenleaf, and Johnson (1998) show that partitionedThe key word here is "mandatory". One part cannot function or will be of any use without the other. For example,take the case of product plus shipping case they quote. When customers buy from an online only seller, there is no avoidance on purchasing the shipping. The customer does not have a choice on whether or not to purchse shipping even though they may have options for multiple classes of shipping.
pricing, in which a firm divides a product’s price into
two mandatory parts, the product and shipping charges, can
increase consumer demand because of lower recalled costs.
Partitioned pricing is not same as unbundling. In the Airline that I love talking about, suppose the airline charged a separate fee for your seat cushion and offer you three choices
- basic $8
- comfort $16
- super comfort $20
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