Partitioned Presentation of Multicomponent Bundle Prices: Evaluation, Choice and Underlying Processing Effects

Abstract

Firms may choose to present the price of a multicomponent product bundle in partitioned (separate price for each mandatory component) or consolidated (single, equivalent price) fashion. In this article, we report on 2 experiments that examined the effects of such presentations on evaluations and choices as well as the underlying processing effects. In Experiment 1, consistent with a mental accounting analysis, a multicomponent product bundle was evaluated more favorably and chosen more often when its components were presented with partitioned (vs. consolidated) prices. The effects were, however, moderated by the component partitioned. In particular, it appeared that partitioning prices altered attention paid to the components partitioned and related product features. In Experiment 2, we found that different splits of the bundle price influenced evaluations and choices depending on how the focal product price related to that of a comparison option. These price‐split effects were also moderated by the component partitioned, suggesting attention effects similar to Experiment 1. The findings show that although the effects of price partitioning were consistent with mental accounting principles, they were moderated by information processing effects related to the partitioned component.