Swati Verma, assistant professor of marketing in the College of Business and Information Technology, has had one of her papers accepted to be published in the Journal of Business Research (JBR). JBR is an A level journal with a high impact factor of 11.3.
Article Abstract:
It is common to find add-on fees (e.g., convenience fee, resort fee, shipping fee) as well as a price discount in the same offer. This research examines the joint effects of add-on fees and price discounts to demonstrate that some price discounts may backfire. The rationale is that when a price discount is similar in magnitude to the add—on fee, it is likely to trigger attribution processes that make salient the negativity associated with the add-on fee. Initial studies show that the magnitude of the price discount matters in negatively impacting perceptions of add-on fee, and adversely impacts overall evaluations. Subsequent studies examine serial mediation effects and identify moderators of theoretical and practical interest. Across six studies, this research illustrates a novel and non-intuitive finding, that the presence of a price discount alongside an add-on fee may negatively impact fairness evaluations and purchase intentions.