Drip Pricing

January–February 2020
Article

Consumer Reactions to Drip Pricing

By: Shelle Santana, Steven Dallas and Vicki Morwitz

This research examines how drip pricing—a strategy whereby a firm advertises only part of a product’s price upfront and then reveals additional mandatory or optional fees/surcharges as the consumer proceeds through the buying process—affects consumer choice and... View Details

Keywords: Drip Pricing; Pricing; Consumer Protection; Hidden Fees; Price; Consumer Behavior; Perception

Citation

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Research Summary

Anyone who has shopped for an airline ticket online has experienced drip pricing, as each successive screen seems to reveal another fee throughout the purchasing process. This practice is becoming prevalent in a variety of industries, but its effect on consumers is... View Details

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Q&A: Orin Smith

that one of the most important things we've done is to popularize high-quality coffee and persuade the customer to pay a higher-than-average price for it. This enables us to pay two to three times what traditional coffee companies are... View Details

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