Nickel and Dimed: The Effect of Surcharges on Purchase Decisions
Olin research studies how surcharges affect consumers’ purchase decisions, especially when they are offered by sellers with low versus high reputations. The results from scenario-based studies and eBay data show that surcharges affect purchases more for low- (versus high-) reputation sellers. This interaction of surcharges and seller reputation is looked at across four studies.
Content: Article | Author: Amar Cheema | Source: Discovery@Olin | Subject: Marketing / Sales