Price Order Effects on SaaS Pricing Pages
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School of Business |
Master's thesis
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Authors
Date
2017
Department
Major/Subject
Mcode
Degree programme
Marketing
Language
en
Pages
59
Series
Abstract
This thesis builds on previous research on effects of price presentation order on consumer choice. Previous research has used primarily offline stimuli, such as restaurant menus and sequential presentation of apartments to examine price order effects. This study adds online SaaS plan pricing tables as a new entry to that set of stimuli. Further, no previous study has examined the price order effect and the effect of a free choice in the same experiment, which is a novel contribution from this thesis to the area of research. A mixed factorial experiment design was employed, in which participants were randomly assigned to 4 treatments differing on the price presentation order and the presence of a free choice. Respondents had to choose a plan on two pricing tables. The two pricing tables differed on product category familiarity, the within-subjects factor, which tested results from previous research in the new SaaS context. Effects of price presentation order, presence of a free choice, and product category familiarity were tested against plan choice. The results confirm that price presentation order affects consumer choice, as found in previous research. Contrary to previous research, product category familiarity did not moderate the effect of price presentation order on plan choice, which may be a consequence of a weaker than expected manipulation. The presence of a free choice was not found to have an effect on plan choice.Description
Thesis advisor
Falk, TomasKajalo, Sami
Keywords
price presentation order, price order effect, Software as a Service, pricing