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The zero-price effect in a multicomponent product context

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  • Baumbach, Elisa

Abstract

This study replicates and extends prior research from single product contexts and multicomponent product contexts on the zero-price effect, i.e., an overproportional increase in demand when formerly priced products are offered for free. The results reconfirm that the zero-price effect is based on consumers' emotional responses to the price of zero. The increased positive affect does translate into the zero-price effect in a high-price multicomponent product context but not in a high-price single product context. Interestingly, additional information on the price ratio of the offered products nullifies the zero-price effect in the high-price multicomponent product context.

Suggested Citation

  • Baumbach, Elisa, 2016. "The zero-price effect in a multicomponent product context," International Journal of Research in Marketing, Elsevier, vol. 33(3), pages 689-694.
    • Handle: RePEc:eee:ijrema:v:33:y:2016:i:3:p:689-694
    DOI: 10.1016/j.ijresmar.2016.01.009
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    References listed on IDEAS

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    1. Kristina Shampanier & Nina Mazar & Dan Ariely, 2007. "Zero as a Special Price: The True Value of Free Products," Marketing Science, INFORMS, vol. 26(6), pages 742-757, 11-12.
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    Cited by:

    1. Xiaomeng Fan & Fengyan Cindy Cai & Galen V. Bodenhausen, 2022. "The boomerang effect of zero pricing: when and why a zero price is less effective than a low price for enhancing consumer demand," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 521-537, May.

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