Monetary vs. nonmonetary prices: differences in product evaluations due to pricing strategies within mobile applications

Abstract

Despite the rapid proliferation of nonmonetary pricing models in the marketplace, no existing research examines consumer inferences derived from these prices. In two studies, we find that consumers perceive products (mobile applications) with monetary prices as being less novel than products featuring a nonmonetary price (banner advertisements). Additionally, the combination of a nonmonetary and a monetary price produces negative novelty inferences similar to those of a single monetary price. Negative inferences derived from a combination of a monetary and nonmonetary price are moderated by a belief in money as a symbol of success, such that those high in this belief form stronger negative inferences regarding product novelty. These inferences regarding product novelty are positively associated with, and fully mediate, the effects of these prices on customer purchase intent.

Keywords:

• Inferences
• nonmonetary pricing
• naïve theories
• banner advertisements
• novelty
• mobile applications

Disclosure statement

No potential conflict of interest was reported by the authors.