The Frame Effect of Price in Online Selling

This research investigates how the price frame affects the consumer’s preference. Using qualitative methodology from the prospective of behavioral science, we find in the overall assessment of a product, the consumers have more selective attention and thus higher weight on secondary attributes under partitioned pricing than under combined pricing. That means in online selling, consumers pay more attention on shipping cost under partitioned pricing than under combined pricing. Under partitioned pricing, the higher the price evaluability the attribute has, the more selective attention on the attribute and thus higher weight on it in the overall assessment of a product. At the same time, consumer’s preference is decided by the transaction value of the attribute which is easier to evaluate. If the price of the product is easier to evaluate, consumers will put more weight on it, and they will choose the product which has higher transaction value on product price. In contrast, if the shipping cost is easier to evaluate, consumers will put more weight on it, and they will choose the product which has higher transaction value on shipping cost.