Abstract
Price partitioning refers to the strategy of dividing the price of a product, which can only be bought as a whole, into two or more parts. Recent studies have provided contradictory findings about the question, if demanding total prices vs. partitioned prices is beneficial. In this article we first present the state of the art about the research concerning effects of price partitioning. Based upon these results we then suggest how to incorporate the effects of price partitioning in a single model. We test this model in a new investigation. The findings show that there are certain conditions under which price partitioning results in a more favourable attitude towards the brand compared to demanding total prices.
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