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The Impact of Add-On Features on Consumer Product Evaluations

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  • Marco Bertini
  • Elie Ofek
  • Dan Ariely

Abstract

The research presented in this article provides evidence that add-on features sold to enhance a product can be more than just discretionary benefits. We argue that consumers draw inferences from the mere availability of add-ons, which in turn lead to significant changes in the perceived utility of the base good itself. Specifically, we propose that the improvements supplied by add-ons can be classified as either alignable or nonalignable and that they have opposing effects on evaluation. A set of four experiments with different product categories confirms this prediction. In addition, we show that the amount of product information available to consumers and expectations about product composition play important moderating roles. From a practical standpoint, these results highlight the need for firms to be mindful of the behavioral implications of making add-ons readily available in the marketplace. (c) 2008 by JOURNAL OF CONSUMER RESEARCH, Inc..

Suggested Citation

  • Marco Bertini & Elie Ofek & Dan Ariely, 2009. "The Impact of Add-On Features on Consumer Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(1), pages 17-28, June.
    • Handle: RePEc:oup:jconrs:v:36:y:2009:i:1:p:17-28
    DOI: 10.1086/596717
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    Cited by:

    1. Jihoon Cho & Swinder Janda, 2023. "Perception carryover in cross-buying: the role of interpurchase time and product locus," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 809-819, December.
    2. Ernan Haruvy & Boram Lim & Peter T. L. Popkowski Leszczyc, 2023. "The effect of surcharge on price in online auctions," Electronic Commerce Research, Springer, vol. 23(2), pages 1161-1182, June.
    3. Song Lin, 2017. "Add-on Policies Under Vertical Differentiation: Why Do Luxury Hotels Charge for Internet While Economy Hotels Do Not?," Marketing Science, INFORMS, vol. 36(4), pages 610-625, July.
    4. Ahmetoglu, Gorkan & Furnham, Adrian & Fagan, Patrick, 2014. "Pricing practices: A critical review of their effects on consumer perceptions and behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 21(5), pages 696-707.
    5. Marco Savioli & Lorenzo Zirulia, 2020. "Does add-on presence always lead to lower baseline prices? Theory and evidence," Journal of Economics, Springer, vol. 129(2), pages 143-172, March.
    6. Mao, Wen, 2016. "Sometimes “Fee” Is Better Than “Free”: Token Promotional Pricing and Consumer Reactions to Price Promotion Offering Product Upgrades," Journal of Retailing, Elsevier, vol. 92(2), pages 173-184.
    7. Mingxing Wu & Liya Wang & Ming Li, 2015. "An approach based on the Bass model for analyzing the effects of feature fatigue on customer equity," Computational and Mathematical Organization Theory, Springer, vol. 21(1), pages 69-89, March.
    8. Jang, Seongsoo & Chung, Jaihak, 2021. "What drives add-on sales in mobile games? The role of inter-price relationship and product popularity," Journal of Business Research, Elsevier, vol. 124(C), pages 59-68.
    9. Marina Psiloutsikou, 2016. "The added value of coaching compared to a friendly discussion: Insight from behavioral economics," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 9(2), pages 47-58, June.
    10. Jin, Liyin & He, Yanqun & Song, Haiyan, 2012. "Service customization: To upgrade or to downgrade? An investigation of how option framing affects tourists’ choice of package-tour services," Tourism Management, Elsevier, vol. 33(2), pages 266-275.
    11. Matthew Lee & Dr. Frankie Law, 2015. "The discount framing in different pricing schemes: Combined versus partitioned pricing," Journal of Business & Management (COES&RJ-JBM), , vol. 3(4), pages 439-458, October.
    12. Janina Garbas & Sebastian Schubach & Martin Mende & Maura L. Scott & Jan H. Schumann, 2023. "You want to sell this to me twice!? How perceptions of betrayal may undermine internal product upgrades," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 286-309, March.
    13. Vithala R. Rao & Gary J. Russell & Hemant Bhargava & Alan Cooke & Tim Derdenger & Hwang Kim & Nanda Kumar & Irwin Levin & Yu Ma & Nitin Mehta & John Pracejus & R. Venkatesh, 2018. "Emerging Trends in Product Bundling: Investigating Consumer Choice and Firm Behavior," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 5(1), pages 107-120, March.

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